In March – after an estimated one million Australians lost their jobs amidst the pandemic – the Australian government introduced a $130 billion JobKeeper payment to keep businesses afloat. However, as we near the four-month mark of what was originally a six-month payment plan, businesses and employees have begun wondering what happens when JobKeeper dries out, and will it be extended.
Hear about what life after lockdown looked like before the madness below:
Today, News.com.au reported that the JobKeeper wage subsidy will be extended until Christmas to assist those still affected by the ongoing COVID-19 pandemic. But, there’s a catch.
JobKeeper 2.0 will reportedly be reduced from $1,500 a fortnight to just over $1,000 for companies that qualify under a far stricter eligibility test.
The test will ensure that companies that have bounced back from the pandemic are removed from the payment plan, and that companies who need the most support are first in line. After September 27th, companies will need to prove they are still being impacted by COVID-19 shutdowns.
News.com.au reports that the new JobKeeper plan will see casual and part-time employees paid a part-time rate of the subsidy, rather than the flat-rate payment they’ve been receiving over the past four months.
This decision comes after JobKeeper was criticised for ‘overpaying’ casual and part-time employees.
“As we have highlighted there will be another phase of income support. It will stick to the principles that we have guided as well,” Treasurer Josh Frydenberg told News.com.au. “It will be targeted, it will be proportionate, it will be scalable, and it will be using existing systems.”
“Barring the spread of the virus in significant numbers beyond Victoria, we expect to see the other state and territory economies continue their recovery towards a COVIDSafe economy,” he said.
It’s no surprise the government is keen to extend JobKeeper. Earlier this month – after recording 191 cases (and growing) – Victoria entered a second lockdown for six weeks. There’s also the fact that clusters of COVID-19 have started popping up and expanding at multiple NSW pubs, restaurants and businesses, leading to fears of a similar second lockdown.
In the last 24 hours, Australia has reported 381 new confirmed cases of COVID-19 – including 40 from overseas across the last week.
Always be in the loop with our snackable podcast breaking the biggest story of the day. Subscribe to It’s Been A Big Day For… on your favourite podcast app.