JobKeeper reduced, still set to end in March

THE fortnightly JobKeeper subsidy has been reduced for a third time, and the federal Coalition still plans to end the scheme in about two months as the Australian economy recovers from the coronavirus pandemic.

Originally intended to end in September 2020, the Coalition extended the scheme last year to March 28, but announced the $1,500 payments would be progressively reduced.

On September 28, the subsidy lowered 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.

On Monday this week, the payments reduced again, to $1,000 and $650.

The Reserve Bank of Australia estimates the JobKeeper payments prevented at least 700,000 jobs from being lost in the short term.

The Coalition has consistently rebuffed suggestions the subsidy could be extended again, with Treasurer Josh Frydenberg saying in December businesses had “graduated out of” JobKeeper as they had got back to work.

“The Morrison Government has always been clear that JobKeeper is a temporary program designed to taper off as economic confidence and momentum builds,” Victorian Liberal Senator Sarah Henderson said earlier this week.

“We’re seeing that through the 734,000 jobs created over the last six months, with fewer businesses and their employees in need of JobKeeper and other temporary economic support,” she said.

“The government’s Economic Recovery Plan also included a range of stimulus measures to keep Australians in jobs and business in business, including personal income tax cuts and the JobMaker Hiring Credit.

“With our economic recovery well underway, Australians have cause for optimism and hope as we emerge from the COVID-19 recession.”

The Coalition has not yet revealed what will (if anything) replace JobKeeper, and the Australian Council of Trade Unions called on the Morrison Government to return the payments to the original coronavirus supplement rate.

“With COVID-19 resurging in NSW and the national economic crisis far from over, cutting economic support to millions of struggling Australians is also an extremely irresponsible act,” ACTU assistant secretary Scott Connolly said.

“The message to the Morrison Government is clear. This economic crisis is far from over and millions of Australians, who’ve lost their jobs through no fault of their own, will require ongoing economic support well into 2021.

“More money in the pockets of struggling Australians through the JobSeeker and JobKeeper schemes, means more money for local businesses and the economy and that makes good economic sense.”