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JobKeeper and JobSeeker changes: How will they impact you?

  • July 22 2020
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JobKeeper and JobSeeker changes: How will they impact you?

By Cameron Micallef
July 22 2020

The Morrison government has announced that it is extending the JobKeeper and JobSeeker policy until March 2021 on a reduced rate. Here’s what it means for you.

JobKeeper and JobSeeker changes

JobKeeper and JobSeeker changes: How will they impact you?

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  • July 22 2020
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The Morrison government has announced that it is extending the JobKeeper and JobSeeker policy until March 2021 on a reduced rate. Here’s what it means for you.

JobKeeper and JobSeeker changes

Businesses who are currently on the JobKeeper payment will need to reapply for the program, with rates changing for staff members based on hours worked.

“The changes that we’re making, the first of those is to apply the JobKeeper test for the 30 per cent turnover reduction across the past two quarters and into the next quarter for the continuing eligibility out to the end of March of next year,” Mr Morrison said.

“There’ll be the next quarter after September, and then there’ll be the March quarter. In both cases, businesses will have the test re-applied in relation to their turnover and will be looking at their performance over the first six-month period of the program, and that will provide, where it’s needed, the gateway into the next phase of the program.”

The Treasury has confirmed that the Commissioner of Taxation will have discretion to set out alternative tests that would establish eligibility in specific circumstances where it is not appropriate to compare actual turnover in a quarter in 2020 with actual turnover in a quarter in 2019.

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Business eligibility

To be eligible for JobKeeper payments under the extension, businesses with an aggregate turnover of $1 billion or less will need to demonstrate that they have experienced a drop in turnover of at least 30 per cent; for those with turnover above this limit, the drop is 50 per cent; and charities are expected to show a 15 per cent shortfall.

But from 28 September, businesses wanting to remain on JobKeeper will also need to prove they suffered an actual decline in turnover for the June and September quarters.

Subsequently, to keep receiving JobKeeper into 2021, on 4 January businesses will need to reconfirm their turnover shortfall for each of the June, September and December 2020 quarters.

Casual employees

The review of the JobKeeper payment found that millions of casuals and part-time employees were receiving an increased income due to the blanket $750 payment per employee.

To try and stop employees cashing in on government benefits, the Morrison government announced that it has created a two-tier system. 

This means that if you are working less than 20 hours a week, you will receive the $750 per fortnight payment. For the March quarter next year, that will drop to $650 per week.

Part-time employees

Part-time workers will be subjected to the same rules as casual employees.

If you are working less than 20 hours a week, you will receive the $750 per fortnight payment. For the March quarter next year, that will drop to $650 per week.

Full-time employees

If you work full-time hours, you will be eligible for the highest rate of JobKeeper – $1,200 per fortnight.

JobSeeker payment

Those who have lost their job due to the COVID-19 pandemic will see a reduction in the JobSeeker payment in the coming months.

The elevated Newstart (now JobSeeker) payment will remain at $1,100 a fortnight until 27 September, until it is reduced by $300.

“As the economy is opening up, we made those changes to JobKeeper by reducing it by $300, and we are doing the same with JobSeeker by reducing that payment by $300,” Treasurer Josh Frydenberg told the media.

Australians will be able to earn up to $300 a week before their payments are reduced.

JobKeeper and JobSeeker changes: How will they impact you?
JobKeeper and JobSeeker changes
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About the author

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Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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