21 July 2020 / COVID-19

JobKeeper & Job Seeker Updates

The PM and Treasurer just spoke to the media regarding upcoming changes to the JobSeeker and JobKeeper Programs:

  • Original system was simple and quick, and level of income support was provided to everyone that needed it desperately as quick as possible
  • JobKeeper – is being put in place for another 6 months, to March 2021, but reducing in value. $1200 per f/n but with two tier payment system to account for people earning less than the program or part time or casual workers.
  • JobSeeker – is being reduced to $250 per f/n with an increase to income free threshold to $300, meaning that people can earn $300 and still get the $250 JobSeeker payment. This will take effect at end of Sept, and run until end of Dec. JobSeeker mutual obligations will start again from 4 Aug.
  • Penalties to JobSeeker payments will kick in if jobs aren’t taken when they are offer to people receiving JobSeeker
  • More changes to JobSeeker flagged, and possible need to keep support ongoing past December or even announced in Oct Budget
  • Plan for people on JobSeeker - get them in a job or train them in a job
  • Current JobKeeper and JobSeeker arrangements will run until end of September as proposed
  • Coronavirus has hit Australian economy hardest ever in the last 100 years
  • 2 million Australians either lost their jobs or had hours reduced. 11.3% effective unemployment rate (lost their job or hours reduced to 0).
  • These payments are single largest economic measure ever – helped 960,000 businesses, 3.5 million workers so far. JobKeeper has stabilised losses.
  • To retain JobKeeper past September, employers will need to demonstrate reduction of turnover, of 30% or 50% depending on size, and show reduction for each previous quarter
  • The JobKeeper wage subsidy will continue until March next year, but payments will fall from $1,500 to $1,200 a fortnight after September. People working fewer than 20 hours a week will receive $750.
  • The payments will fall again to $1,000 a fortnight, and $650 a fortnight for people working fewer than 20 hours, for the first three months of 2021.
  • The JobSeeker coronavirus supplement will continue for another three months but fall from $550 to $250 a fortnight, meaning people on the program will receive $800 a fortnight after September (as opposed to $1,100 at the moment).

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