Huge changes coming to JobKeeper as it's revealed subsidy WILL be extended beyond September deadline but it will be far harder to claim - here's who will be eligible
- The JobKeeper subsidy will continue on until at least Christmas amid COVID-19
- Eligibility criteria will change to tighten amount of businesses who qualify
- Amount of money will also be dropped from $1,500 per fortnight for full timers
- Meanwhile casuals and part timers offered even less money in new scheme
- Jobseekers will also benefit from an extension to their COVID-19 supplement
The JobKeeper subsidy will be extended until at least Christmas, but the government will not continue to fork out $1,500 a fortnight for millions of workers.
Instead, the standard payment will likely be dropped to $1,000 a fortnight for full-time workers from the end of September, and casual and part-time employees will be allocated a smaller sum rather than the fixed rate they currently receive.
The requirements to qualify for JobKeeper will also be adjusted to reflect the needs of the community.
Victoria will likely need to the most support given the state has entered a second lockdown in an attempt to stem the spread of a second COVID-19 outbreak.
The JobKeeper subsidy will continue on until at least Christmas time, but the government will not continue to fork out $1,500 a fortnight for millions of workers. Pictured: Queues to enter Centrelink before JobKeeper was introduced
Treasurer Josh Frydenberg is expected to outline the new JobKeeper 2.0 on Thursday
Businesses have been forced to close amid the coronavirus pandemic and are still struggling to bounce back
The JobKeeper payment of $1,500 a fortnight was made available to eligible businesses to enable them to pay their staff even if they were not open during the pandemic.
A new income test will also be conducted come September 27, when the current scheme ends, to ensure businesses which have already bounced back are removed from the payment scheme, news.com.au reported.
Treasurer Josh Frydenberg is expected to outline 'JobKeeper 2.0' on Thursday.
The Morrison Government is also predicted to crack down on eligibility for sole traders.
The decision comes after months of campaigning to prevent the government from simply cutting off the service without offering struggling businesses an alternative.
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A worker disinfects high-touch areas for the reopening of a cinema following the easing of the coronavirus before Melbourne was thrust into a second lockdown
An employee wipes over a table at a bar in Melbourne. Businesses will have to continue to prove eligibility for new JobKeeper
Victoria will likely need to the most support given the state has entered a second lockdown in an attempt to stem the spread of COVID-19
Mr Frydenberg told the publication this would be 'another phase of income support'.
'It will stick to the principles that have guided us well. It will be targeted, it will be proportionate, it will be scalable, and it will be using existing systems,' he said.
'The JobKeeper payment is an economic lifeline to millions of Australians and hundreds of thousands of businesses.
'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.'
Another new element of the second wave of JobKeeper will potentially be ongoing eligibility testing.
To qualify for JobKeeper initially, a business needed to prove that it had lost at least 30 per cent of income.
Showing those figures for one month gave a company access to JobKeeper for the entire program until the end of September.
Finance Minister Mathias Cormann agreed with altering the eligibility and means testing criteria
In addition to the changes to JobKeeper, Mr Morrison (pictured) is expected to announce an extension to the current Jobseeker payments
Businesses have been forced to close amid the coronavirus pandemic and are still struggling to bounce back
But new means testing could see businesses having to hand over their figures and turnover results to the Australian Taxation Office each month to prove hardship.
This would make it easier for the government to cut funding for businesses which appear to have bounced back from the pandemic.
It is not yet clear if all industries will qualify for the extended handouts.
Finance Minister Mathias Cormann agreed with altering the eligibility and means testing criteria.
'In the first six months, irrespective of what happened to your turnover after you initially qualified, you were in — but as we go into this next period, there is a need to reassess whether that support, you still need it for specific businesses,' he said.
In addition to the changes to JobKeeper, Prime Minister Scott Morrison is expected to announce an extension to the current Jobseeker payments.
That number will also likely be reduced from the current $550-per-week payments.
Cases have spiralled in Victoria recently, sending the state into a second lockdown
A NSW Health worker dressed in Personal Protective Equipment testing a person for COVID-19 from their car
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