The JobKeeper program and the Coronavirus Supplement have been extended for those on the Northern Beaches under the next phase of our support for affected businesses and households.
This unprecedented economic support for local businesses and their workers is helping the Northern Beaches community through the COVID-19 pandemic and bolstering our economic recovery.
Under the Liberal Government?s next phase of support, the JobKeeper Payment will continue at its current level until 27 September, after which it will be extended for a further six months to 28 March 2021.
A two-tiered payment will also be introduced so as to better reflect the pre-COVID-19 income of payment recipients.
Specifically, from 28 September until 3 January next year, the two payments will be $1,200 and $750 per fortnight, with the lower payment for employees who worked less than 20 hours a week in the month of February pre-COVID-19.
From 4 January to 28 March next year, the two payments will be $1,000 and $650.
The temporary Coronavirus Supplement for those on income support will also be extended until 31 December 2020. The $550 per fortnight Supplement will continue until 24 September.
From 25 September until 31 December, the Supplement will be $250 per fortnight, reducing by the same amount as the JobKeeper payment.
Northern Beaches Member of Parliament, Jason Falinski MP said ?this continued support for Australians who are without work, and for businesses and their workers will help our community to not only get through this crisis, but recover on the other side.?
Treasurer Josh Frydenberg said the extension of support recognises that Australia?s economic recovery is still in its early stages and a number of local businesses and individuals remain significantly affected by the global COVID-19 pandemic.
?The Morrison Government?s focus remains on reopening the economy where it is safe to do so, but the extension of these measures recognises that some parts of the economy will continue to be affected and need continued support,? the Treasurer said.
?Sadly, as a result of this global health pandemic, businesses will close and people will lose their jobs, but that is why we have extended the Coronavirus Supplement and announced a new skills package to help people transition from welfare to work,? the Treasurer said.
Mr Falinski said ?We are extending the JobKeeper payment beyond September to help keep businesses in business and Australians in jobs as our economy reopens.?
?The program has made a difference to local businesses on The Northern Beaches by keeping a connection between employers and employees to help them get to the other side of the crisis.?
As at 3 June 2020, in the electorate of Mackellar, around an estimated 8200 organisations are on JobKeeper. In the electorate of Warringah, there are an estimated 7900 organisations on JobKeeper.
The JobKeeper Payment has been instrumental in supporting job retention, maintaining employment links and business cash flow, as well as providing income support to eligible employees.
This extension will provide further support to significantly impacted businesses so more Australians can retain their jobs and continue to earn an income.
The JobKeeper Payment is currently due to finish on 27 September 2020, but will now remain available for eligible employers until 28 March 2021.
As the economy reopens the payment will be tapered in the December and March quarters to encourage businesses to adjust to the new environment, supporting a gradual transition to economic recovery, while ensuring those businesses who most need support continue to receive it. A two-tiered payment will also be introduced from 28 September, to better align the payment with the incomes of employees before the onset of the COVID-19 pandemic. Employees who were employed for less than 20 hours a week on average in the four weekly pay periods ending before 1 March 2020 will receive the lower payment rate.
JobKeeper Payment rates from 28 September 2020 to 28 March 2021:
28 September 2020 to 3 January 2021: full rate per fortnight – $1,200
4 January 2021 to 28 March 2021: full rate per fortnight – $1,000
From 28 September 2020, businesses, and not-for-profits will be required to reassess their eligibility by reference to their actual June and September quarter turnovers to demonstrate that they have suffered an ongoing significant decline in turnover. Organisations will need to demonstrate that they have experienced the relevant decline in turnover in both of those quarters to be eligible for the JobKeeper Payment in the December quarter.
Employers will need to again reassess their eligibility for the JobKeeper Payment for the March quarter. Employers will need to demonstrate that they have met the relevant decline in actual turnover in each of the previous three quarters ending on 31 December 2020 to remain eligible for the JobKeeper Payment in the March quarter 2021.
If they do not meet the turnover test in the extension period this does not affect their eligibility prior to 28 September 2020. The continuation of JobKeeper for these businesses will help support the economic recovery and provide them with sufficient time to adjust.
The JobKeeper Payment will continue to remain open to new participants that meet the eligibility requirements.
Also, as the Review recommended, an independent evaluation will be conducted at the conclusion of the program.
The new arrangements for the JobKeeper Payment are expected to cost an additional $16.6 billion.
The Government will extend the payment period of the temporary Coronavirus Supplement for those on income support from 25 September 2020 to 31 December 2020 to continue to provide elevated assistance while the economy is still in its early stages of recovery.
As the economy reopens, the Coronavirus Supplement will be extended at the rate of $250 per fortnight. The extended Coronavirus Supplement reflects the gradually improving economic and labour market conditions and is designed to ensure there are appropriate incentives for all payment recipients to seek out employment or study opportunities.
Both existing and new income support recipients will continue to be paid the Coronavirus Supplement.
The Government will also ensure income support is appropriately targeted as the economy recovers by reintroducing a range of means testing arrangements.
From 25 September 2020, the assets test and the Liquid Assets Waiting Period will be reintroduced and the JobSeeker Payment partner income test will increase from 25 cents for every dollar of partner income earned over $996 per fortnight to 27 cents for every dollar of partner income earned over $1,165 per fortnight.
The Government will also improve incentives to work by increasing the income free area for JobSeeker Payment and Youth Allowance (Other) from $106 per fortnight to $300 per fortnight and will simplify the taper rate from a dual taper of 50 cents and 60 cents to a single taper of 60 cents. This will mean recipients are more easily able to calculate the value of every dollar they earn.
These changes will mean individuals will be able to earn up to $300 per fortnight without foregoing any JobSeeker payment or affecting their eligibility for the Coronavirus Supplement.
The expanded criteria for JobSeeker Payment and Youth Allowance (Other) will continue to provide payment access for permanent employees who are stood down or lose their employment, sole traders, and the self-employed until 31 December 2020.
Reduced waiting times, including the Ordinary Waiting Period, Newly Arrived Resident?s Waiting Period (NARWP) and the Seasonal Work Preclusion Period, will continue to be waived until 31 December 2020.
The new arrangements for the Coronavirus Supplement are expected to cost an additional $3.8 billion.
Further details are available at treasury.gov.au.
Media release provided by Jason Falinski MP, 21st July 2020