JobKeeper and JobSeeker extended for six months

THE JobKeeper and JobSeeker schemes have been extended beyond September, but the payments will be reduced.
On Tuesday this week, Prime Minister Scott Morrison announced some of the the long-awaited details of what would come after JobKeeper, which was scheduled to end on September 27 but will now continue until March 28.
JobKeeper will remain at its present level of $1,500 until September 27, but from September 28 to January 3 will reduce to $1,200 and $750 per fortnight, with the lower payment for employees who worked less than 20 hours a week in the month of February pre-COVID-19.
From January 4 to March 28, the payments will reduce again, to $1,000 and $650.
The temporary Coronavirus Supplement for those on income support will be extended until December 31, but the $550 supplement will reduce to $250 per fortnight on September 25.
Changes are also being made to the JobSeeker Payment and Youth Allowance (other) income tests to, according to a federal government fact sheet, “improve incentives for individuals to re-enter the workforce or take on additional work as the economy recovers”.
From September 25 until the end of the year, the income free area for JobSeeker Payment and Youth Allowance (other) will increase from $106 per fortnight for JobSeeker Payment and $143 per fortnight for Youth Allowance (other) to $300 per fortnight for both.
This means that recipients of these payments can earn income of up to $300 per fortnight and still receive the maximum payment rate.
Treasurer Josh Frydenberg said the extension of support recognised that Australia’s economic recovery was still in its early stages and several businesses and individuals remain significantly affected by the global COVID-19 pandemic.
“The Morrison Government’s focus remains on reopening the economy where it is safe to do so, but the extension of these measures recognises that some parts of the economy will continue to be affected and need continued support.
“Sadly, as a result of this global health pandemic, businesses will close and people will lose their jobs, but that is why we have extended the Coronavirus Supplement and announced a new skills package to help people transition from welfare to work.”
Victorian Liberal Senator Sarah Henderson said her government had extended JobKeeper beyond September “to help keep businesses in business and Australians in jobs as our economy reopens”.
“The program has made a difference to local businesses in regional Victoria by keeping a connection between employers and employees to help them get to the other side of the crisis.”
Corangamite Labor federal member Libby Coker welcomed the JobKeeper extension but said it was unfortunate the Coalition did not widen the subsidy’s eligibility “to include those left out in the first tranche of the program”.
“Labor will work through the detail of what is being proposed. When we see the legislation, if there are improvements to be made, we will seek to make those improvements.
“But it’s now on the government to outline what their plan is to repair the economy and for jobs moving forward.
Ahead of Thursday’s mini-budget, I urge Scott Morrison to invest in a stimulus package for our tourism sector.”
The Australian Council of Trade Unions (ACTU) welcomed the continuation of JobKeeper and JobSeeker but had concerns about the changes to the program design.
“This announcement has delayed the economic catastrophe that would have resulted from pushing these programs off the cliff during the pandemic, but we need far-reaching government investment to create a path out of recession and to create the jobs we will need to rebuild the economy,” ACTU secretary Sally McManus said.
“The increase of the income-free threshold to $300 for JobSeeker is welcome but the reintroduction of mutual obligations is a worrying return to the punitive approach to welfare payments which we hoped the Morrison Government had left behind.”