Once a company qualifies for JK (which is one month significantly less then the same month of a previous year) that money is effectively theirs to do what they want. The only restriction is that everyone that works for them must earn the jobkeeper amount as a minimum. However the companies receives it for every staff member.
If the market then picks up, and everyone is busy and no staff are stood down, effectively it can flow to the bottom line. This is quite legitimate and there is nothing in essence wrong with it. In this case in particular it did look like it stopped CNW from trading at a loss, so it was needed.
CNW Price at posting:
2.9¢ Sentiment: None Disclosure: Not Held
