Around 3.5 million Australians are set for a pay cut within days, with the Government’s $1,500 per fortnight JobKeeper subsidy losing upwards of $300 from 28 September.
The new JobKeeper scheme was legislated earlier this month, with the changes slated to come into effect on Monday 8 September.
How much will JobKeeper be from 28 September?
Right now, Aussies receiving JobKeeper are eligible for $1,500 per fortnight.
From 28 September, those who are working more than 20 hours per week will receive $1,200 per fortnight. That’s around 80 per cent of the minimum wage, and this is called Extension 1.
But the new system is two-tiered, meaning those who work less than 20 hours per week will receive $750 per fortnight.
"We are now extending and transitioning," Prime Minister Scott Morrison said in announcing the changes.
"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 instead."
How much will JobKeeper be from 4 January?
The first extension period runs until 4 January, with Extension 2 kicking in from that date and lasting until 28 March 2021. All in all, JobKeeper has been extended for another six months.
This scheme will see those working more than 20 hours per week eligible for $1,000 per fortnight, and those working less than 20 hours per week eligible for $650 per fortnight.
What do the JobKeeper changes mean for businesses?
There’s a new turnover test for businesses to prove their eligibility for the wage subsidy.
To be eligible for Extension 1, businesses will need to show that their actual GST turnover declined 30, 50 or 15 per cent (depending on the size of your business) in the September 2020 quarter compared to the same time last year.
They also need to have satisfied the original decline in turnover test, unless they are enrolling in JobKeeper for the first time.
To satisfy the criteria for Extension 2, businesses will need to show their actual GST turnover declined 30, 50 or 15 per cent (depending on the size of your business) in the quarter ending 31 December 2020. That’s again compared to the same quarter last year.
More Aussies eligible for JobKeeper
What’s more, Aussies who joined a business up to 1 July will be eligible for JobKeeper, where previously they needed to have been on the books as of 1 March.
According to Treasury estimates, more than 3.5 million Australians and nearly 1 million businesses have received JobKeeper so far, with Treasurer Josh Frydenberg flagging 530,000 more Victorians would need the subsidy in the September quarter.
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