Ms Westacott said that the “nation-saving instrument” of JobKeeper was being misused by a small number of companies and that there “wasn’t any question” that it was the wrong move to make.
“In my view, companies should not be paying executive bonuses if they are receiving JobKeeper,” Ms Westacott told media.
“It wasn't designed for that. It was designed to keep people working… dividends is a more complicated thing.”
Ms Westacott says that there’s a greater case for paying dividends due to the fact that shareholders are often self-funded retirees and mum-and-dad investors who are reliant on the payments – but warned that companies must exercise “very careful judgment” about paying out dividends.
“I would urge those companies to really think about these decisions, because we have to build community confidence… we have to wind this thing down according to the government’s timetable,” Ms Westacott said.
The comments follow Labor MP Andrew Leigh’s move to name and shame companies who were using the payment for executive bonuses and dividends. The top offender, Accent Group, received $13 million in JobKeeper – and paid CEO Daniel Agostinelli a $1.2 million bonus. 1300SMILES received $3 million in JobKeeper while paying out $2 million to managing director Daryl Homes, who owns two-thirds of the company.
“JobKeeper was designed in order to keep battlers in work, not keep billionaires in champagne… Most firms have done right,” Mr Leigh said.
“They’ve extended sick leave, managers have tightened their belts, they’ve recognised we’re all in it together. But there’s just a few who seem to have missed the memo, not to have managed to get it right. And it’s those firms whose behaviour I think just falls outside the social contract.”
