BE READY FOR CHANGE: GOVT CUTS JOBKEEPER PAYMENT AND JOBSEEKER PAYMENT
The Australian government have outlined the future of the two payment schemes
The federal government has confirmed cuts to the JobKeeper payment and JobSeeker payment. The eligibility of people for both has also been tightened. Federal Treasurer Josh Frydenberg and Prime Minister Scott Morrison have outlined the future of the two schemes on Tuesday morning.
While announcing the changes, Morrison said that Australia’s support system could not go on forever. He said, “Australians understand that. They also understand that the JobSeeker at the elevated levels cannot go on forever.”
Here’s what’s will change soon…
JobKeeper Payment Would Reduce
- Full-Time Employees
From the end of September, the government will reduce the assistance given to job keepers. The payment for full-time workers will be reduced to AUD 1,200 from AUD 1,500 per fortnight. On January 3, 2021, it will reduce to AUD 1,000 from AUD 1,200 per fortnight. The new date for JobKeeper 2.0 is set on March 28, 2021. This extension would cost AUD 16 billion to the govt. and will raise the total cost of the scheme to AUD 86 billion.
- Part-Time Employees
People who were working less than 20 hours a week in February 2020 will get AUD 750 per fortnight after September. It will further be reduced to AUD 650 a fortnight at the beginning of 2021.
Changes in JobKeeper Payment Eligibility
If a business owner who has signed up for a JobKeeper payment needs the payments further, they will need to prove that they are experiencing hardship. The tests that map at least 30 or 50 per cent reduction in turnover will be the same (it is 15 per cent for charities), but you will need to reapply for them at the end of September and at the beginning of January if you want a JobKeeper payment from then on.
Employers seeking JobKeeper payment also need to prove that they have faced a decline in turnover in all the previous quarters. Anyone applying for a JobKeeper payment in January next year must prove that decline for June, September, and December.
Changes in JobSeeker Payment Rules
JobSeeker payment or JobSeeker coronavirus supplement has also been reduced. The supplement of AUD 550 per fortnight will be reduced to AUD 250 per fortnight. Thankfully, the base rate is still the same. As a result, the total JobSeeker payment would reduce from AUD 1,115 to AUD 815.
As per the new JobSeeker payment changes, you can earn AUD 300 a fortnight instead of AUD 106 before the JobSeeker payment gets affected. It is done to encourage people to find new jobs without bothering about JobSeeker payment cuts. Post-December changes to JobSeeker payment would be made in the next few months. The cost of extending this supplement is AUD 3.8 billion.
You Must Actively Look for a Job Soon
The changes in JobKeeper payment and JobSeeker payment are also made to encourage people to look for work again from August. To ensure that, the government is also bringing back the requirement that asks people who are receiving an unemployment benefit to connect with employment services so that they can undertake at least four job searches a month. Penalties for people who don’t make an effort and for those who refuse a job being offered to them would also come back.
The assets test will also be reintroduced, and partner income test would be increased as well. It will go up from 25 cents for each Australian dollar of partner income earned over AUD 996 per fortnight to 27 cents for every Australian dollar of partner income that is earned over AUD 1,165 per fortnight.
Reactions on JobKeeper Payment and JobSeeker Payment Changes
Labour leaders reacted to JobKeeper payment and JobSeeker payment changes by saying that they will support the JobKeeper changes. They still criticized the government for saying that some people were paid more than they earned before the Coronavirus pandemic hit the nation.
The Greens’ Sarah Hanson-Young has stated that the crossbench party would not support any changes which lead to a reduction in JobKeeper payment and JobSeeker payment.
Cassandra Golding from The Australian Council of Social Services stated that the cut to the coronavirus supplement would be distressing for the people who are receiving it. She also called on the Government and asked it to set a new permanent rate for every JobSeeker.
The Australian Council of Trade Unions supported the extension of JobKeeper payment and JobSeeker payment. Industry groups have also backed the extension. At the same time, they also warned that more support was needed to ensure that businesses don’t need to close their doors.
Do you think the changes to JobKeeper payment and JobSeeker payment are wise as the coronavirus cases are on the rise again, or you believe that it’s time we resume normal lives?
