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JobKeeper extended until March 2021: What it means for you

"Now that the JobKeeper Payment has passed Parliament, this is how it'll work"

Anastasia Santoreneos
Yahoo Finance AU21 July 2020

PHOTOS - JobKeeper extension confirmed: What it means for you. Source: Getty

The JobKeeper subsidy has been extended until March, but will operate at a reduced rate, the prime minister revealed on Tuesday.

Businesses receiving the payment will now be subject to a new turnover test, and a different rate will be applied for part-time and casual employees.

“JobKeeper is doing its job and will continue to do its job through the decisions we're announcing today,” Prime Minister Scott Morrison said on Tuesday.

“Already just over $30 billion has been provided in support through the JobKeeper Program to almost a million businesses - 960,000, thereabouts - supporting some 3.5 million employees.”

Morrison said the government’s review into JobKeeper found the scheme needed to continue, but it needed to become more targeted.

What’s changed?

The government’s review into JobKeeper found that around one-in-four Australians on JobKeeper were receiving a pay rise of, on average, $550 per fortnight. Over six months, that equates to a $6,600 pay rise.

It’s this situation that Finance Minister Mathias Cormann referred to as an “adverse incentive”.

“What the review also found was that there were a number of features of JobKeeper that created adverse incentives which may become more pronounced over time as the economy recovers,” Cormann said.

“This formed part of our considerations as we looked at the next phase of the JobKeeper program.”

To combat this, the government will have a two-tiered payments system: from 28 September until 3 January, the top tier will receive $1,200 per fortnight, and the bottom will receive $750. From 4 January until 28 March, the top tier will receive $1,000 per fortnight, and the bottom $650 per fortnight.

Here’s what it means for you.

Continued: https://au.news.yahoo.com/jobkeeper-march-what-means-012859696.html