The shadow assistant treasurer, Andrew Leigh, has claimed in parliament that some Australian companies are misusing the jobkeeper scheme by channelling millions of dollars into executive bonuses.
In a speech to parliament on Monday night, the Labor frontbencher attacked companies including IDP Education, which employs Australia’s highest-paid chief executive, and Star Casino.
He also attacked companies who used the jobkeeper supplement to prop up payments to shareholders, calling the manoeuvre “dividendkeeperâ€.
“Recessions hit the poor hardest, which is why Australia followed many countries around the world in implementing a wage subsidy scheme,†Leigh said.
“But a scheme designed to reduce inequality is being misused by a small number of firms, who are channelling it to executive bonuses.â€
He said IDP received $4m in jobkeeper payments and gave Barkla a $600,000 bonus.
According to data compiled by the Australian Council of Superannuation Investors, Barkla was paid $37.7m last year – a record figure over the six years in which the group has surveyed executive pay.
Leigh said shoe retailer Accent Group, which runs stores under brands including The Athlete’s Foot, received $13m in jobkeeper and paid its CEO, Daniel Agostinelli, a $1.2m bonus.
“Star Casino received $64m in jobkeeper, and gave CEO Matt Barkier an equity bonus worth $800,000,†he said.
He attacked furniture retailer Nick Scali and dentist chain 1300 Smiles for taking jobkeeper and “diverting money for workers into shareholder payoutsâ€.
As Guardian Australia has previously reported, the Scali family stands to reap about $2.5m in dividends and 1300 Smiles managing director Daryl Holmes is in line to get about $1.8m.
“If you’re getting taxpayer subsidies, the CEO shouldn’t be getting a bonus,†Leigh said.