Several months ago John Piggott (CEPAR Director, UNSW Sydney) and Bruce Chapman (ANU) argued the case for the use of revenue-contingent loans (RCLs) as part of the transition from JobKeeper. An RCL is a debt for business, with the defining characteristic being that repayments occur when the firm is able to do so comfortably in the future. The concept is closely related to the Higher Education Contribution Scheme (HECS) pioneered in Australia in the 1980s.
This article is published in Pearls and Irritations. Read the original article.
By Bruce Chapman, Professor of Economics, College of Business and Economics, Australian National University, and John Piggott, Scientia Professor of Economics, CEPAR Director, UNSW Sydney