Federal Government announces updates to JobKeeper and JobSeeker
On 21 July 2020, the Federal Government announced an extension to the JobKeeper wage subsidy through to 28 March 2021 and a temporary boost to the JobSeeker unemployment benefit program. This initiative is obviously designed to allay fears of a significant disruption to business viability in September from the proposed cessation date, commonly referred to as the “September Cliff”.
JobKeeper support will be targeted to businesses and not-for-profits that continue to be significantly impacted by the coronavirus. The current payment rate will be reduced on a staged basis and a lower payment rate will be introduced for those individuals who work fewer hours. Other eligibility rules remain unchanged.
The JobKeeper Payment will continue to remain open to new recipients, provided they meet the existing eligibility requirements and the new additional turnover tests during the extension period. For more information visit the ATO website here.
- the JobKeeper wage subsidy will be cut at the end of September to $1200 a fortnight for full-time workers and to $750 for part-time workers, down from the current single rate of $1500.
- The scheme is being extended for six months, until March 28 next year, but will be revised down further at the start of January to $1000 for full-time workers and $650 for part-time employees working 20 hours a week or less.
JobSeeker Coronavirus supplement:
- The JobSeeker coronavirus supplement will also be reduced at the end of September from $550 to $250 a fortnight, meaning those without a job will have their payments cut back to about $800 a fortnight under the unemployment scheme.
- The reduced supplement will be added to welfare payments until the end of the year, when the government will reassess the economic situation
Other eligibility rules for businesses and not-for-profits and their employees remain unchanged. Contact Advivo for assistance with applying for the JobKeeper Scheme for the first time or reapplying the JobKeeper Scheme turnover tests in October 2020.