Gerry Harvey won’t follow Lew’s lead on returning JobKeeper funds

Billionaire retailer Solomon Lew’s unexpected decision to repay $15.6 million in government JobKeeper subsidies will not be followed by a number of other notable ASX-listed recipients, including Harvey Norman founder Gerry Harvey.

On Monday, Mr Lew’s retail empire Premier Investments, which operates companies such as Peter Alexander and Smiggle, notified shareholders it would pay back the JobKeeper ‘net benefit’ it had received for the first half of the 2021 financial year.

Premier Investments chairman Solomon Lew wil repay $15.6 million in JobKeeper.Credit:Eddie Jim

The move is a remarkable backflip for Mr Lew and Premier, who took a firm stance against repaying the subsidies earlier this year alongside a number of other major Australian companies, including retailer Harvey Norman, car dealer Eagers Automotive, and footwear seller Accent Group.

However, it appears the billionaire’s change of heart will not be replicated by other major companies who received the stimulus while also reporting higher profits and paying dividends.

Mr Harvey confirmed to The Age and The Sydney Morning Herald on Monday his position on repaying the subsidy remained unchanged. The 81-year-old businessman has previously said he would not repay the approximately $6 million claimed by his electronics retailer due to it being a “tiny amount of money”. He has also said the company will repay it through higher taxes.

Gerry Harvey says the backlash over JobKeeper repayments is a non-issue. Credit:Janie Barrett

A spokesperson for Eagers Automotive, which recorded $130 million in JobKeeper subsidies for the 2020 calendar year alongside a $156 million profit, did not comment on whether the company still did not intend to repay the amount.

Premier had initially said its JobKeeper funds would be used to compensate staff for future lockdowns. On Monday, the business said while it had used the funds during Queensland and Western Australia’s snap lockdowns sales performance upon reopening had “fully offset the cost of supporting our teams”, meaning the JobKeeper funds were not required.

“The Premier Board, having regard to these outcomes, combined with the success of the Commonwealth and State Government’s management of COVID-19, has determined that it is now appropriate to refund the net JobKeeper benefit of $15.6 million to the Australian Tax Office,” the company said.