ScoMo announces JobKeeper extended until March, split into two tiers

Prime Minister Scott Morrison has announced that JobKeeper and JobSeeker will be extended until March 2021.

However, JobKeeper will now be split into two tiers, with the amount decreasing over time.

scott morrison, jobkeeper, jobseeker

Scott Morrison has announced that JobKeeper will be extended until March 2021, but there will be a sharp reduction in its amount.

Speaking in a news conference today, Morrison revealed that the wage subsidy scheme would be split into two tiers, depending on if recipients are working full time or part-time, with the latter categorised as those who work 20 hours or less per week.

At the end of September, full-time workers will receive a revised rate of $1,200 per fortnight and part-time workers will receive $750 – both down from $1,500. Then, in December, the amounts will be further reduced, with full-time workers getting $1,000, and part-time workers getting $650.

JobSeeker is also set to be reduced from September, with the payment going down from $1100 to around $800 per fortnight until the end of the year. This remains up from the pre-COVID rate of around $560 (back when the payment was named Newstart).

Elsewhere, the income threshold for claiming JobSeeker is being raised to $300, meaning if people are working, they will be able to earn more income and still claim the payment. Of course, that’s if they can even find a job at this time.

Recently, a study found that if the JobSeeker payment was to return to its pre-COVID amount, more than half a million Australians would be thrown into poverty.

The announcement has been met with criticism, with some highlighting how the payment continues to least benefit those most in need: