Originally, JobKeeper & JobSeeker payments were going to end in September 2020 but due to new COVID-19 cases popping up, it looks like the crisis will not be ending anytime soon. As such, Finance Minister Mathias Cormann confirmed ahead of the announcement that will be made by the Prime Minister, that Australians will continue to receive JobKeeper and JobSeeker payments until March 2021, but at a reduced rate with stricter eligibility criteria. So, what does this mean for you
JobKeeper Extension
The JobKeeper wage subsidies will maintain its current structure until September 2021. This means, monthly reporting and a wage subsidy of $1,500/fortnight will still be in play.
However, from October 2020 to March 2021, changes will be put in place. As stated by Cormann “we will be lowering those payments in order to phase them out, in order to wean businesses off this temporary crisis support”. It has been decided that they will manage this through two payment tiers with tougher eligibility requirements to ensure only businesses who truly need this financial help will receive it. This will include:
- More frequent turnover-reporting requirements
- Full-time and Part-time workers will receive different amounts of cash to close off the current loophole
Specific details will be announced later today.
JobSeeker Extension
The JobSeeker unemployment benefit, which is being received by over 1.6 million Australians, will also be extended. The benefit was effectively doubled in March 2020 when the Government announced recipients of the benefit would receive a $550 fortnightly ‘coronavirus supplement’ payment. Cormann outlined that “the payment will continue at that level until the end of September 2020, then it will be lowered for the six-month extension”.