Changes to JobKeeper and JobSeeker payments

The changes to JobKeeper are predicated on the Prime Minister’s belief that two million Australians will be back in work after Christmas.

Sure … and Marilyn Monroe sang me Happy Birthday last week. But it’s much better than nothing. Many will go on to JobSeeker by the end of the year.

The current $1500-a-fortnight payments for the wage subsidy scheme JobKeeper will continue until September 27. After that, the system will pay workers until 28 March 2021 in ‘two tiers, depending on their pre-pandemic hours.

Those who worked full-time before March 2020 will have their payments cut to $1200 from September 28 and down to $1000 from January 4.

Part-time workers, which includes those who worked fewer than 20 hours a week, will have their payments reduced to $750 and then to $650 over the same periods.

Out-of-work Australians on JobSeeker will have their income support cut to $815 a fortnight after September and be forced to apply for jobs to hold onto their benefits following a federal government shake-up of economic supports.

The extra coronavirus supplement available to those on the dole will be reduced in October to $250 a fortnight, down from $550, in addition to the base JobSeeker payment of $565.70.

The new rate will be paid until the end of the year for those unable to find work, but Prime Minister Scott Morrison has committed to reviewing the payments in a few months and has signalled extra support is likely into 2021.

Those wanting to receive the benefits are also required to jump through extra hoops. From August onwards, people will be required to apply for four jobs a month.

The assets test and Liquid Assets Waiting Period, which requires people with cash reserves to face a wait of up to 13 weeks for support, will be reintroduced in late September.

The JobSeeker partner income test will also rise from 25c for every dollar earned over $996 a fortnight to 27c of every dollar earned over $1165. However, individuals will be able to earn up to $300 a fortnight without affecting their payments, up from $106.

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