Industry Update - JobKeeper extended six months
Welcome news from the Prime Minister Scott Morrison today with the JobKeeper wage subsidy being extended beyond the end of September.
The additional six months of the JobKeeper wage subsidy is positive news for South Australia’s tourism industry and the many small to medium sized businesses which have been hit hard by travel and physical distancing restrictions.
Mr Morrison announced the extension today, as well as changes to the JobSeeker support package.
Premier Steven Marshall welcomed the move saying it would support tens of thousands of local jobs and South Australian businesses, and that it will help “keep the lights on, the doors open and their staff in jobs”.
Highlights from today’s announcement include:
- From the original end-date of 28 September, JobKeeper payments will be reduced to $1,200 per fortnight for full-time workers and to $750 for part-time (those who work less than 20 hours a week).
- From 4 January 2021, the JobKeeper payments will be further reduced to $1,000 per fortnight for full-time workers and to $650 for part-time.
- Businesses will need to re-qualify for “JobKeeper 2.0” – and will use actual income earned on the previous quarter, rather than projected income of the next.
- The JobSeeker coronavirus supplement will be extended beyond September, at a reduced rate from the current $550 to $250, until the end of this year.
- The income-free threshold for those on the unemployment benefit will be increased to $300, meaning JobSeeker recipients can earn that amount without it affecting their payment. Mutual obligation requirements also will return, with the assets test to be reintroduced from the end of September.
To qualify for the extended JobKeeper payments, businesses will need to meet renewed eligibility tests of turnover at the end of each quarter (i.e. the end of September and the end of December) – with small to medium sized businesses having to demonstrate a 30 per cent loss in revenue; and a 50 per cent reduction for large businesses.
For full details about the eligibility tests, please refer to the Federal Government's Department of Treasury website, which includes a downloadable factsheet about the JobKeeper extension.
I know this news will be a welcome relief to many operators, and will help sustain our visitor economy while we rebound post COVID. We are continuing to work closely with our industry, including through our regional visits and with our new marketing campaigns, which launched this week.
Our state also took a positive step forward last night with the hosting of our first AFL match at Adelaide Oval with supporters allowed. A crowd of around 18,000 people watched from the stands, with more expected on this weekend for the two matches on Saturday and Sunday, under the watchful eye of SA Health.
As the only state with no active cases, we should be very proud of the way we have managed the threat, and worked together to protect our community.
Read the full Industry Update - 21 July 2020 here.