Invest
JobKeeper and JobSeeker changes: How will they impact you?
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: How will they impact you?
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.
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.
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.
About the author
About the author
Economy
Consumer confidence is quickly pushing Australia’s economy from recovery to expansion
Both Australian consumers and property investors came out of last month feeling pretty chuffed about the economy. ...Read more
Economy
4 Aussie cities among 10 most liveable in the world
This year’s global liveability score has been strongly influenced by measures taken to stem the spread of COVID-19, with cities ranked according to how successfully they dealt with the pandemic. Per...Read more
Economy
Australia attended the G7 as a ‘green laggard’, new report shows
Following a weekend at the G7, Australia has been labelled a “green laggard” as a consequence of letting its green competitiveness significantly slide over the past two decades. ...Read more
Economy
Melbourne’s lockdown ends tomorrow
As announced, Melbourne will begin its path out of lockdown as of 11.59pm Thursday evening, but some restrictions will remain. ...Read more
Economy
GDP slows to 60-year low
Australia’s gross domestic product per capita growth has fallen to its slowest pace in at least 60 years, with the massive government spending looking to come at a ‘great cost to future generation...Read more
Economy
Recovery falters just a month after JobKeeper ends
The end of JobKeeper has seen a rise in defaults and administrations, which could hamper Australia’s recovery from the COVID-19 downturn, new research has revealed. ...Read more
Economy
Frydenberg considers JobKeeper return for Victorians
The federal government has granted Victoria Premier James Merlino a chance to pitch his ‘JobKeeper style’ aid, but it has refused to acknowledge that Victoria’s predicament could be linked to fe...Read more
Economy
Australia’s economy is officially back to pre-pandemic levels
As most economists predicted, Australia’s economy is back to pre-pandemic levels, the latest official figures show. ...Read more
Are you being priced out of the market? Have you got the Tuesday blues? And are you ready for the upcoming super changes?
Listen now
Are property prices set to crash? Should you jump on board the fintok craze? And how to prepare for this tax time
Listen now
Dissecting the budget and what it means for your equities, property and super
Listen now
Has the property market reached its peak; Biden’s climate summit and our sharemarket, and the upcoming budget
Listen now
Economy
Consumer confidence is quickly pushing Australia’s economy from recovery to expansion
Both Australian consumers and property investors came out of last month feeling pretty chuffed about the economy. ...Read more
Economy
4 Aussie cities among 10 most liveable in the world
This year’s global liveability score has been strongly influenced by measures taken to stem the spread of COVID-19, with cities ranked according to how successfully they dealt with the pandemic. Per...Read more
Economy
Australia attended the G7 as a ‘green laggard’, new report shows
Following a weekend at the G7, Australia has been labelled a “green laggard” as a consequence of letting its green competitiveness significantly slide over the past two decades. ...Read more
Economy
Melbourne’s lockdown ends tomorrow
As announced, Melbourne will begin its path out of lockdown as of 11.59pm Thursday evening, but some restrictions will remain. ...Read more
Economy
GDP slows to 60-year low
Australia’s gross domestic product per capita growth has fallen to its slowest pace in at least 60 years, with the massive government spending looking to come at a ‘great cost to future generation...Read more
Economy
Recovery falters just a month after JobKeeper ends
The end of JobKeeper has seen a rise in defaults and administrations, which could hamper Australia’s recovery from the COVID-19 downturn, new research has revealed. ...Read more
Economy
Frydenberg considers JobKeeper return for Victorians
The federal government has granted Victoria Premier James Merlino a chance to pitch his ‘JobKeeper style’ aid, but it has refused to acknowledge that Victoria’s predicament could be linked to fe...Read more
Economy
Australia’s economy is officially back to pre-pandemic levels
As most economists predicted, Australia’s economy is back to pre-pandemic levels, the latest official figures show. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
