The great JobKeeper rort: ATO turns down THOUSANDS of applications for $1,500-a-fortnight benefit from people who aren't eligible
- Thousands of people may be required to pay back jobkeeper funds they received
- $1,500-a-fortnight payments were handed out at height of COVID-19 pandemic
- Some 3 million people who lost their jobs during lockdown received payments
- Businesses have also received letters telling them they may need to repay funds
Thousands of people tried to claim the $1,500-a-fortnight jobkeeper payment at the height of the COVID-19 pandemic despite not being eligible for the handout.
Australia's Tax Office has knocked back more than 6,500 applicants who tried to rort the benefit scheme introduced to assist those who lost work during the lockdown.
More than three million people were receiving the JobKeeper handout at the peak of the pandemic, before restrictions were gradually lifted in May.
As of last month the ATO had paid out almost $13billion in JobKeeper payments to 872,482 businesses, The ABC reports.
The ATO has warned that workers and business owners who are detected receiving the payment, despite not qualifying, could be required to pay the money back
Thousands of people not eligible for JobKeeper still tried to claim the $1,500-a-fortnight payment at the height of the COVID-19 pandemic (pictured, a queue outside Centrelink in Melbourne)
Lengthy queues stretched outside Centrelink offices (pictured, in Sydney) as more than three million people tried to claim government assistance in the days after losing their jobs
'At any particular time, we are reviewing between two and three per cent of JobKeeper applications,' an ATO spokeswoman said.
'We will identify those who are intentionally defrauding the system and we will use the full force of the law [to punish them].'
Some of the rejected applications also include sacked workers who made genuine mistakes on their paperwork.
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More applications could still be rejected with the ATO introducing a team designed to specifically weed out potential rorters.
The Australian Federal Police is already investigating potential fraud relating to the jobkeeper payments through the Serious Financial Crime Taskforce.
Anyone caught deliberately defrauding the scheme could face fines or jail time.
Letters were also sent to some 8,000 business across the country this week warning them that they may be asked to repay the money they received during COVID-19.
Closed shops are seen in Crowns Nest, Sydney on May 13 (pictured) with 872,482 businesses claiming JobKeeper payments
More than 8,000 businesses who were forced to shut up shop during the COVID-19 pandemic (pictured, an empty cafe in east Sydney)
Among them were a large number of soletraders who came into operation after July 1 last year and turned over less than $75,000.
As such they did not have a tax return to lodge as part of the JobKeeper application.
'If we don't hear anything within 14 days we will advise you that the entity will not receive further payments under this entitlement,' the ATO email reads, according to The Age.
'If you have made an honest mistake you may not have to repay amounts you have already received.'
Some sole traders who lost almost their entire income have been left fearful they will be financially ruined by having to repay the handout they received appropriately.
Federal treasurer Josh Frydenberg (left) and Prime Minister Scott Morrison (right) expected that more than $130 billion would need to be handed out as part of the jobkeeper scheme, but closer to $70 billion has been required
The JobKeeper application form states that if business owners or workers are unsure if they are eligible for the entitlement they should phone the ATO.
An ATO spokesperson confirmed that after a difficult time for both businesses and workers they will work to ensure anyone who qualified for handouts receives them.
'We are unable to pay businesses that do not meet the requirements of the law,' the spokeswoman said.
'The ATO will work with business owners to avoid and overcome honest mistakes.'
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