Here’s What the Changes to JobKeeper and JobSeeker Mean for You

JobKeeper will continue until March 2021, but payments will fall.

If you have been receiving the JobKeeper wage subsidy, you're probably eager to find out whether the program will be extended, and how it will change going forward.

The JobKeeper scheme, which has benefited millions of workers across the country, was initially meant to operate until the end of September this year. 

However, earlier today the federal government announced the JobKeeper wage subsidy will continue until March 2021. Except, payments will be decreased from September.  

So, how will it impact me? 

At the moment, the JobKeeper payment is $1,500 per fortnight for eligible employees. From 28 September, that figure will fall based on your circumstances.

It largely depends on how heavily your employer is still suffering financially. To be eligible for the extension, your employer must re-apply for the payment and be able to demonstrate that they have lost 30 per cent or more of their turnover this year.

If your employer has a turnover of more than $1 billion per year, they'll need to prove that they've continued to suffer a loss of 50 per cent of turnover during the coronavirus pandemic. 

In the event your employer is still eligible for JobKeeper, and you used to work 20 hours or more per week, you'll receive $1,200 a fortnight instead of $1,500 from 28 September. 

On the other hand, if you worked fewer than 20 hours per week in February 2020, your payments will drop to $750 a fortnight.

Prime Minister Scott Morrison said these changes were happening now because the government's systems were not equipped to deal with the "two-tier" system at the beginning of the pandemic.

What happens after 4 January 2021? 

Good question. 

From 4 January next year, the JobKeeper payments will be scaled down even further. Businesses who are still struggling financially will need to demonstrate it again, and full-time workers will receive $1,000 per fortnight. 

Those who worked 20 hours or less during February 2020 will receive $650 per fortnight.

What about the changes to JobSeeker?

If you aren't an eligible employee for JobKeeper, you might be receiving Centrelink's JobSeeker coronavirus supplement instead. 

At the moment, JobSeeker recipients are getting $550 a fortnight. This will continue for another three months, and then it will fall to $250 a fortnight until the end of December.

Since the coronavirus supplement was introduced, a single person without a child receiving the JobSeeker payment could get a maximum amount of about $1,100 per fortnight. But with the changes, the total payment will be decreased to around $800 a fortnight.

Although, the revised JobSeeker program will enable recipients to earn $300 a fortnight, instead of the previous $106, before facing a reduction in their government payment.

As reported by the ABC, the Prime Minister said he expected the coronavirus supplement was likely to be continued into 2021. 

JobSeeker will now be $810 a fortnight, down from $1100. Until the end of the year, @ScottMorrisonMP says it will be looked at again then #auspol

— Samuel Clark (@sclark_melbs) July 21, 2020

When will I have to start looking for a job?

If you are receiving the JobSeeker payment, you'll need to start actively looking for a job from the beginning of August. 

The government is reintroducing the requirement that people receiving the unemployment benefit have to connect with employment services and undertake at least four job searches each month.

Penalties will also return for people who don't meet the requirements, along with anyone who refuses a job that has been offered to them. 

Additionally, the government is also bringing back the assets test and increasing the partner income test from 25 cents for every dollar of partner income earned over $996 a fortnight, to 27 cents for every dollar of partner income earned over $1,165 a fortnight.

From @SenatorCash & @Anne_Ruston media release. Quote:
“From Aug 2020 if a job seeker refuses an offer of suitable employment - without a valid reason - they may have their payment cancelled, & may need to wait for four weeks before they can reapply for income support”. #auspol

— Sam W (@sammmw8) July 21, 2020

You can find information on how to apply for Youth Allowance and JobSeeker here.

(Update 07/08/20): Treasurer Josh Frydenberg has announced businesses will only need to show that their GST turnover had fallen over one quarter, instead of multiple, to be eligible for the JobKeeper scheme extension.

Workers will also qualify if they were employed on 1 July, rather than 1 March. 

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