JobKeeper’s about to end – buckle up for a bumpy ride!

D-day is just 11 days away. That’s when JobKeeper ends and those relying on it to keep them afloat, will be left to sink or swim.
We’ve known for a long time it’s coming but it is going to be a huge shock to a lot of people who are not prepared, and a lot of businesses that are not financially able to keep people on the books without support.
The government has had plenty of time to implement more targeted support but for a lot of people it simply won’t be enough.
The mood isn’t so dire though. Most people feel buoyed by the increasing value of real estate. Only yesterday on Channel 9 we were told that Australia’s property market has recorded its strongest rise in almost five years, with the average price of a residential home now more than $720,000. New figures released yesterday from the ABS found residential property prices rose in all capital cities in the December quarter of 2020.
This is simple outcome of increased demand and limited supply, acting as a smokescreen for the fiscal cliff we’re about to tumble off.
Here’s the reality:

  • 1.54 million Australians collected JobKeeper from October to December;
  • Victoria still has the highest number of people on the scheme, with more than 600,000;
  • It’s unlikely that every one of them is going to be able to flick a switch and become gainfully employed come 1st April.

As a result I’m expecting a sharp spike in unemployment numbers, which in time will lead to people defaulting on their mortgages and rents. That should account for the booming property prices.

I’m also anticipating small businesses will start defaulting on their rents, and we could even see an increase in crime, particularly white-collar crime by people desperate for money.

I don’t want to come across as a doomsayer but buckle up, this ride’s about to get bumpy.