CHANGES TO JOBKEEPER PAYMENT AND JOBSEEKER PAYMENT SCHEMES ANNOUNCED

PREPARE TO FACE TO MASSIVE CUTS AFTER SEPTEMBER

Treasurer Josh Frydenberg announced changes to the JobKeeper Payment and JobSeeker Payment. Announced in March, these payments would be revised in September and would continue till March 28, 2021. Here’s what will change shortly.

 

Changed Eligibility Requirements

Businesses that avail a JobKeeper payment would need to provide turnover reports that say the business has experienced a fall in June to September 2020 as compared to the same quarter in 2019 to prove that they are still struggling. The focus of offering JobKeeper payment would shift to industries that are facing grave financial difficulties. Reports showing a fall for September to December quarter (in 2020 as compared to 2019) will also be needed if the business wants to be eligible for JobKeeper payment from January 4, 2021, onwards.

 

The Flat Rate

It has been reported that currently 960,000 employers are being given a flat rate of AUD 1,500 a fortnight for each member of the staff they kept on their books in the times of COVID-19. Some people criticized this move as many employees were earning more than they normally would. So, from September 28, 2019, JobKeeper Payment would have two payments. A flat rate of AUD 1,200 per fortnight will be offered to people who work over 20 hours a week and AUD 750 per fortnight would be for workers who work less than 20 hours a week. From January 4, 2021, these payments would again reduce to AUD 1,000 per fortnight for workers who work more than 20 hours a week and AUD 650 per fortnight for people who work less than 20 hours a week.

 

JobSeeker Payment Changes

People who are eligible for JobSeeker Payments get AUD 550 a fortnight, but this will be reduced from September onwards. From September 27, it would be just AUD 250, and it would run out by the end of 2020. The income free threshold would be increased to AUD 300 a week.

 

The changes to JobKeeper Payment and JobSeeker payment come as unemployment is on the rise. It was 7.1 per cent in May and will be 10 per cent by the end of this year as the coronavirus situation seems to go from bad to worse. The cases are rising constantly in Victoria and the introduction of phase 4 lockdown and paid pandemic leave are the only steps taken by our government till now.