The government is introducing a second-tier payment as part of JobKeeper 2.0 to better reflect the pre-COVID-19 incomes of recipients.

21 July 2020

Under the JobKeeper extension to March 2021, only businesses whose turnover remains below the threshold of 30% will be eligible for continued support. This will ensure it remains targeted to those who need it most.

JobKeeper payments will be ­extended for millions of stood-down workers beyond September 2020 at a new rate of $1200 a fortnight for an additional six months, as businesses face a slower recovery because of virus outbreaks in Victoria and NSW.

What has changed?

Tighter eligibility tests will be applied to JobKeeper, which subsidises the wages of about 3.5 million workers whose employers have suffered a major revenue hit from the coronavirus pandemic.

These will include a steeper reduction in payments for almost 900,000 part-time and casual workers who had received an average effective pay rise under the $70 billion JobKeeper scheme.

The $550 coronavirus supplement 2020 which has boosted JobSeeker to about $1,115 a fortnight will be extended beyond the September cut-off date and paid at a lower rate, but still leave the jobless ahead of the previous $556 a fortnight they received through the Newstart payment.

Two-tiered payments system:

  • From 28 September 2020 until 3 January 2021, the top tier will receive $1,200 per fortnight, and the bottom will receive $750.

  • From 4 January 2021 until 28 March 2021, the top tier will receive $1,000 per fortnight, and the bottom $650 per fortnight.

Receiving Jobkeeper now:

  • $1,500 per fortnight rate will continue to 27 September 2020.

  • $1,200 per fortnight, or $750 per fortnight for those working less than 20 hours a week.

  • From the March 2021 quarter, $1,000 per fortnight for those working full-time, or $650 for those working less than 20 hours a week.

Business owner:

  • Reduced turnover of 30% when business turnover is less than $1 billion; or

  • Reduced turnover of 50% when business turnover is more than $1 billion.

  • Reduced turnover of 15% for charities.

  • Relevant decline in turnover in both the June and September quarters to be eligible for the JobKeeper payment in the December quarter.

Casual & Part-time worker:

  • Working less than 20 hours a week, will receive the $750 per fortnight payment until the March 2021 quarter.

  • Drops to $650 per week for the March 2021 quarter.

Full-time worker:

  • Eligible for full $1,200 if working full-time hours.

Job Loss:

  • JobSeeker payment of $565.70 per fortnight

  • Coronavirus supplement of $550 boosts JobSeeker to $1,115.70 per fortnight until 27 September 2020.

  • From September 2020, the Coronavirus supplement will be reduced to $250 per fortnight, therefore reducing the total fortnightly payment to $815.70 until March 2021.

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