By Juliano Oliveira
Payments from JobKeeper and Jobseeker will be extended by the Federal Government, but both will experience cuts in values.
Initially due to finish on 27 September, the JobKeeper subsidy will now remain available for eligible employers until 28 March 2021.
The benefit, however, will drop from $1,500 to $1,200 between 28 September 2020 and 3 January 2021, and then to $1,000 for the remaining months. Employees working less than 20 hours a week on average will receive $750 before having their subsidy reduced to $650.
Prime Minister Scott Morrison has also announced the extension of the payment period of the temporary Coronavirus Supplement to 31 December 2020, but with a rate change from $550 to $250 a fortnight.
“We are also increasing the income free area for JobSeeker Payment and Youth Allowance [other] to $300 a fortnight to encourage and support recipients to take up job opportunities as businesses reopen,” said Mr Morrison.
The new arrangements for the Coronavirus Supplement are expected to cost an additional $3.8 billion.
Businesses
Following determination from the Federal Government, from 28 September 2020, businesses, and not-for-profits will be required to reassess their eligibility by reference to their actual June and September quarter turnovers to demonstrate that they have suffered an ongoing significant decline in turnover.
“Organisations will need to demonstrate that they have experienced the relevant decline in turnover in both of those quarters to be eligible for the JobKeeper Payment in the December quarter.”
“Employers will need to again reassess their eligibility for the JobKeeper Payment for the March quarter. Employers will need to demonstrate that they have met the relevant decline in actual turnover in each of the previous three quarters ending on 31 December 2020 to remain eligible for the JobKeeper Payment in the March quarter 2021.”