How Jobkeeper 2.0 Will Impact You

The legislative reforms to the Jobkeeper scheme were officially passed in the senate last week, ensuring that Jobkeeper 2.0 will commence on September 28.

The scheme has provided a lifeline to 3.5 million Australians since its launch in March.  These changes will see a dramatic reduction in the subsidies eligibility and payment amount.

Here is a guide for all you need to know about the Jobkeeper and Jobseeker changes and how it will impact you.

Am I eligible for Jobkeeper 2.0?

From September 28, businesses, sole-traders and non for profits that have experienced a 30% reduction in aggregated turnover in the last quarter will be eligible to access the revised subsidy. For businesses with profits over $1 billion, this reduction rate needs to be 50%.  

All businesses, not for profits and sole-traders who have been accepted into the scheme have to reassess their eligibility using their GST turnover figures to prove this. 

Businesses that were previously ineligible to the scheme will have a chance to be included if they meet the requirements. 

If your employer does not meet these requirements, then your normal pay rate prior to Covid-19 will be restored.

After January 3, businesses will need to re-apply for the next wave of subsidies.

It is expected by the Treasury that by January only 1 million people will remain on the scheme.

What are the new Jobkeeper and Jobseeker amounts?

From September 28 onwards, the Jobkeeper rate will be split into two categories; those who are full time employees and those who work part time. Full time employees and those who work in excess of 20 hours a week are entitled to a pay rate of $1200 a fortnight. 

Part time employees who work less than 20 hours, will have an even further reduced rate of $750 a fortnight.

These amounts will apply until January 4, where these amounts are further reduced to $1000 and $650 a fortnight respectively.

Meanwhile, people on Jobseeker payments will have their amounts slashed to $300 a fortnight, with opportunities for a $250 COVID supplement to be paid with this. 

Do these changes apply to Victorians?

The changes to both Jobkeeper and Jobseeker will apply to all of Australia, including Victoria despite their second lockdown. 

The reduction in amounts has been heavily criticised as Victorians will have their payments cut at a time few can work. 

Victorian Premier Daniel Andrews announced on Sunday that the earliest Melbournians will be out of Stage 4 lockdowns will be the end of October. This means that for millions in Victoria will still be without a non-subsidised income for a prolonged period of time. 

When will Jobkeeper officially end?

The Jobkeeper subsidies will end on March 28, meaning the subsidies will be in place for a full year.

It is expected that there will be no further extensions to the legislation.

Have any further questions about Jobkeeper and Jobseeker reforms? Leave a comment below.