JobKeeper Program Update

Yesterday the Federal Parliament passed the Government’s extension of $100 billion JobKeeper program.

Treasury estimates that without JobKeeper, Australia’s unemployment rate would be five percentage points higher and that the measures have saved around 700,000 jobs since the COVID-19 pandemic began earlier this year.

JobKeeper was introduced in March, with a flat payment of $1,500 per fortnight for eligible employees for six months, ensuring money could be distributed quickly by using existing mechanisms. The Commonwealth estimates that from October, more people will be on JobKeeper in Victoria than in the rest of Australia combined.

For the next stage of JobKeeper – from September until March 2021 – there will be a two-tiered payment:

• For the December quarter, payments will be $1,200 per fortnight per employee or $750 for workers who were employed for less than 20 hours a week.
• For the March quarter, payments will be $1,000 per fortnight per employee or $650 for workers who were employed for less than 20 hours a week.

Prime Minister Scott Morrison described the scheme as the most significant economic intervention in Australian history.

“We are now extending and transitioning,” Mr Morrison said on Tuesday.

“Transitioning and looking to a day when Australian communities don’t need JobKeeper and when Australians can then run their businesses and hold their jobs sustained by a vibrant and growing economy.”

For further details on all the Government measures are available at treasury.gov.au.