It has now been confirmed that Australians in receipt of JobKeeper or JobSeeker will have their payments reduced from September, as the prime minister and treasurer outlined changes to the federal government’s income support program this morning.
Addressing the media in Canberra on Tuesday, Prime Minister Scott Morrison said the government must adapt its economic measures in response to the changing circumstances of the global pandemic and said the Coalition has worked to “calibrate its response carefully”.
“This is a virus that will plot its own course, what we are in charge of is our own response,” the PM said. “As a government we have been very focused on providing practical solutions to practical problems.”
From the end of September, JobKeeper payments will drop from $1,500 to $1,200 a fortnight for those working more than 20 hours a week. Those working less than 20 hours will be entitled to a payment of $750 per fortnight. These amounts will then be cut again in the March quarter of 2021 to $1,000 and $600 respectively.
Today’s announcement means that the JobKeeper program will be in place for an entire year, however businesses will have to prove their eligibility past September 28 – which is the date that the current scheme ends – in line with the turnover test. Previously businesses were required to show that they expected see a 30 per cent reduction in turnover, however they will now need to show they have suffered a 30 per cent reduction over the past two quarters, and into the next quarter.
JobSeeker payments are also changing, with the coronavirus supplement being slashed from $550 to $250. However the Coalition has also increased the income-free area to $300, meaning claimants can earn $300 without it affecting any income support payments.
Mutual obligation is also being reintroduced in two phases. The first phase, from August 4, will require those in receipt of JobSeeker payments to reconnect with employment services and carry out four job searches per month. If these caveats are not adhered to, then penalties will apply. “If there is a job to be taken and a job that is being offered, then it is an obligation, a mutual obligation, for those who are on JobSeeker to take those jobs where they’re on offer,” Morrison said.
The second phase will then come into effect at the end of September and will require a higher rate of job search, as well as reintroducing the assets test and liquid asset waiting period at that time.
Morrison was also joined by Treasurer Josh Frydenberg, who revealed the cost of extending the JobKeeper program by six months would be around $16 billion, bringing the total cost to around $86 billion.
Victorian Premier Daniel Andrews also addressed the media on Tuesday, as he confirmed that the state had recorded a further three deaths relating to Covid-19. This takes the national death toll to 126. Andrews also announced that the southern state has recorded a total of 374 new cases in 24 hours, which marks the southern state’s second-highest daily increase.