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How JobKeeper and JobSeeker will change from September

July 23rd, 2020

Millions of Australians will continue to receive JobKeeper and JobSeeker beyond their original end date in September as part of an extra $20 billion in government stimulus.

Prime Minister Scott Morrison and Treasurer Josh Frydenberg told reporters on Tuesday that both support measures would be extended to help households and businesses recover from the coronavirus recession.

But both payments will be cut, businesses will have to meet new turnover tests, and JobKeeper will be split into two tiers – one for full-time workers and one for part-time workers.

With that in mind, here’s everything you need to know about the next phase of income support payments.

What is the new JobSeeker rate?

As of September 25, the maximum fortnightly rate for a single household will drop from $1110 to $810. That includes the energy supplement but ignores rent assistance.

How does that work? What changes were made?

On March 22, the federal government effectively doubled the unemployment benefit JobSeeker when it introduced a temporary Coronavirus Supplement of $550 a fortnight.

The temporary supplement was paid on top of the base JobSeeker rate, which is equal to $565.70 a fortnight for someone without children, and $612 a fortnight for someone with children.

On Tuesday, the government announced the current arrangements and eligibility requirements will stay in place until September 24.

But, as of September 25, the fortnightly Coronavirus Supplement will drop from $550 to $250 – where it will stay until at least December 31.

The future of the Coronavirus Supplement beyond that date is undecided, but the Prime Minister said “we would anticipate there would need to be some continuation of the COVID Supplement payment post-December”.

Meanwhile, the JobSeeker base rate will stay at its current level.

This is why Tuesday’s announcement effectively means the unemployment benefit was cut by $300 a fortnight.

Continue reading about the JobKeeper changes that may affect you.

First published on www.thenewdaily.com.au and republished with permission from The New Daily. For the full article visit The New Daily website.