Ten things you need to know about JobKeeper changes
JobKeeper payments are about to change and it will impact millions of Australians' hip pockets. Here's everything you need to know.
WHAT IS JOBKEEPER?
It is the Federal Government's $70 billion program that was announced on March 30. It is the largest one-off fiscal measure and is a temporary subsidy for businesses significantly impacted by COVID-19. It was scheduled to run until the end of September.
WHAT IS THE AIM OF JOBKEEPER?
To help businesses and jobs survive and provide income support for employers and employees who need it. In April alone it provided income to businesses who suffered an average decline of 37 per cent in income compared to the same time last year.
HOW MUCH ARE JOBKEEPER PAYMENTS?
Eligible employers, sole traders and other entities who have proved they have a turnover that is down by 30 per cent only need to prove it once and can receive $1500 (before tax) per eligible employee per fortnight until September 27. As of July 15 JobKeeper payments dished out have totalled more than $29.8 billion.
HOW MANY PEOPLE ACCESSED JOBKEEPER?
The program was taken up by 920,000 businesses and it supported more than 3.5 million individuals during the April and May period alone.
WHAT ARE THE MAIN SECTORS THAT HAVE TAKEN UP JOBKEEPER?
Industries include construction, professional, scientific and technical services, health care and social assistance.
WHAT IS THE CORONAVIRUS SUPPLEMENT?
It's a fortnightly payment of $550 if you get an eligible income support payment and is taxable income. This is automatically given to people on income support including Jobseeker payments, youth allowance, Austudy and ABSTUDY until September 24.
HOW ARE THESE PAYMENTS CHANGING?
The payments will continue under their legislated end dates but then they will be paid a lower level than now. JobKeeper will have two payment tiers to more closely align with the incomes of those who work fewer hours. It is understood payments may be reduced from $1500 a fortnight to $1000.
IS ELIGIBILITY IMPACTED?
Yes. In October eligibility will be reassessed based on decline in turnover. This will be done to ensure only those that require assistance need it.
WHAT HAS BEEN ONE OF THE MAIN PROBLEMS WITH JOBKEEPER?
Some part-time workers and casuals received an increase in income due to the flat rate payment and the incentive to work additional hours was impacted.
HOW WILL JOBSEEKER BE IMPACTED?
These details are yet to be announced.Under existing arrangements single recipients are entitled to $1115.70 per fortnight. This includes $565.70 JobSeeker payment and the $550 coronavirus supplement. These amounts vary depending on a person's situation.
Originally published as Ten things you need to know about JobKeeper changes