The JobKeeper lifeline slashed amid the growing COVID-19 cases.
The Morrison government has announced that JobKeeper will be continued past September, but there will also be a cut to the JobKeeper wage subsidy to $1200 a fortnight beginning in September.
The fortnightly payment scheme, which has been a lifeline for many spas and clinics, will see a reduction of $300 per fortnight for full-time workers taking the payment to just $1200. The scheme is now split into two tiers and will see part-time workers who work less than 20 hours per week receive $750 per fortnight. This differs from the $1500 flat rate outlined in March. The subsidy will continue until March 2021 opposed to its expected end date of September 2020.
If you’re a business owner that receives JobKeeper payments at the moment, and you wish to keep receiving them past September, you will have to pass a new eligibility test at the end of September showing that your turnover in Q3 is still significantly affected by COVID-19.
Eligibility for the JobKeeper payments has tightened along with the rate cuts. Businesses turning over less than $1 billion must prove a financial drop of at least 30 per cent on pre-pandemic figures to remain eligible for the payments. Businesses with a turnover of more than $1 billion must prove a 50 per cent fall in revenue.
Time will tell what this means for the majority of spas, clinics, and wellness businesses as the post-lockdown rush many have experienced may mean their increased revenue no longer makes them eligible for JobKeeper past September.
More than 3.5 million Australians receive payments from JobKeeper, and the subsidy is paid to 960,000 employers. Prime Minister Scott Morrison said “no one thing” can alleviate the financial burden of the COVID-19 pandemic.
How are you feeling about the government’s decision to extend JobKeeper at reduced rates? Tell us in the comments.
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