• Furniture retailer Nick Scali has announced it will pay back $3.6 million in JobKeeper subsidies received over the second half of 2020.
• The company’s statement comes after it revealed $40.5 million in net profits over the same time period.
• Nick Scali joins a growing number of large companies which have agreed to repay that taxpayer funding after turning profits during coronavirus lockdowns.
• Visit Business Insider Australia’s homepage for more stories.

Furniture retailer Nick Scali has agreed to repay $3.6 million in JobKeeper subsidies it accrued over the second half of 2020, days after it revealed record sales and net profits of $40.5 million.

In a statement shared with investors on Monday, the chain said the federal government’s payroll subsidy helped to “provide security of employment during a particularly uncertain time.”

JobKeeper allowed Nick Scali to keep employees on the books through Melbourne’s coronavirus shutdowns, and during more recent coronavirus scares in South Australia and Western Australia.

But the company’s board says it recognises its good fortunes amid “increased consumer confidence”.

“The Board of Directors and management have considered the $3.6m wage subsidy received in the half-year ended 31 December 2020 and decided to refund this amount to the Federal Government,” the statement read.

Nick Scali found plenty of spare change behind its couch cushions over the second half of 2020, revealing on Thursday that its net profits had almost doubled.

After facing forced store closures and supply chain issues in the first half of the financial year, “the team was able to capitalise on shifting consumer spending patterns and deliver a record result for the Company,” said managing director Anthony Scali.

The company added it would also dole out a 40 cent-per-share interim dividend to shareholders, reportedly equating to a $4.4 million windfall for Scali himself.

News of Nick Scali’s remarkable success rankled Labor MP Andrew Leigh, who publicly suggested the company pay back subsidies “it clearly didn’t need.”

Last night’s update “reflects well” on the company, Leigh said on Tuesday.

He used the opportunity to call on Federal Treasurer Josh Frydenberg to consider a public registry of companies which reported rising profits while receiving JobKeeper subsidies.

Nick Scali’s payback promise comes after JobKeeper recipients including Rebel Sport owner Super Retail Group, Toyota, Domino’s, and Coca Cola Amatil announced they would also reimburse the federal government.

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