Designer label Louis Vuitton keeps $6million JobKeeper payout, profits went to world’s richest man

Global fashion powerhouse Louis Vuitton keeps $6million JobKeeper payout despite record profits during the pandemic – increasing the wealth of one of the world’s richest men

  • High-end French fashion house Louis Vuitton kept $6million from JobKeeper
  • Luxe brand one of several big companies to claim benefit despite making profits
  • Louis Vuitton is owned by Frenchman Bernard Arnault, the world’s richest man

A global fashion powerhouse claimed almost $6million from the Australian taxpayer during the pandemic despite increasing its own revenue, profits and shareholder dividends.

Company records show that iconic French fashion house Louis Vuitton, which is worth an estimated $558million, claimed nearly $6million in JobKeeper wage subsidies during the pandemic.

JobKeeper was an $88billion wage subsidy program designed to keep the economy afloat during the Covid-led downturn of 2020, but employers were only supposed to claim it if they had experienced a 30 per cent fall in turnover.

The Louis Vuitton revelation, which came in the same week billionaire Gerry Harvey returned the $6million his company Harvey Norman received from JobKeeper, earned a stinging rebuke from the federal assistant shadow treasurer.

Global fashion powerhouse Louis Vuitton claimed almost $6million from the Australian taxpayer during the pandemic – despite increasing its own revenue, profits and shareholder dividends

Company records show Louis Vuitton, which is worth an estimated $558million, claimed nearly $6million in Australian JobKeeper wage subsidies during the pandemic

Company records show Louis Vuitton, which is worth an estimated $558million, claimed nearly $6million in Australian JobKeeper wage subsidies during the pandemic

In 2020 Louis Vuitton’s total sales revenue increased from $482.2million to $465.5million on the previous year. 

Its total income tax more than doubled to $28million while after-tax profits grew to $54.9million from $29.5million.

Its shareholder dividends increased nearly $7million to $33million.

‘Louis Vuitton certainly had a luxurious pandemic,’ Dr Andrew Leigh told Daily Mail Australia.

‘A company that lifted its revenue and profits selling $3,600 dumbbells does not need support from the Australian taxpayer,’ he said.

‘They should reach down into one of their $10,000 wallets and pay back the $6million in taxpayer support they clearly didn’t need.’

Dr Leigh claimed the Liberal Government had ‘splashed $13billion in taxpayer cash on billionaire shareholders and millionaire CEOs’ and called it ‘the biggest waste of taxpayer money in our history’.

Labor used the Parliamentary Budget Office analysis to show that $13billion went to companies that actually made a profit.

The exact amount Louis Vuitton Australia received from the JobKeeper wage subsidy was $5,965,000 – compared to the $6.56million it paid to its parent company over the same period.

Companies were only supposed to claim JobKeeper if they experienced a 30 fall in turnover, but according to its own record, in 2020 Louis Vuitton's total sales revenue from increased to $482.2 million from $465.5 million on the previous year

Companies were only supposed to claim JobKeeper if they experienced a 30 fall in turnover, but according to its own record, in 2020 Louis Vuitton’s total sales revenue from increased to $482.2 million from $465.5 million on the previous year

The man who benefitted most from Louis Vuitton's payments was Bernard Arnault, who owns 47 per cent of Louis Vuitton, and was named the world's richest man in August - ahead of Amazon's Jeff Bezos

The man who benefitted most from Louis Vuitton’s payments was Bernard Arnault, who owns 47 per cent of Louis Vuitton, and was named the world’s richest man in August – ahead of Amazon’s Jeff Bezos

Louis Vuitton’s own records show its Australian arm increased revenue by 3.5 per cent during the pandemic, and increased their profit by 86 per cent to $25million. 

Under JobKeeper businesses received $1500 a fortnight per employee to cover the cost of their wages. 

The man who benefited most from Louis Vuitton’s payments was Bernard Arnault, who owns 47 per cent of Louis Vuitton, and was named the world’s richest man in August – ahead of Amazon’s Jeff Bezos.

Earlier, electronics retail giant Harvey Norman has bowed to public pressure and repaid $6milllion in JobKeeper subsidies after revealing record profits.

The company has come under intense criticism after its head office and franchisees were given more than $20million in wage subsidies last year despite surging sales.

Billionaire chairman Gerry Harvey had previously refused to give any of the cash back, insisting it was just a ‘tiny amount of money’.

Read more at DailyMail.co.uk