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Image of a hand with the caption 'JobKeeper and JobSeeker - Updates to payments from 28 September 2020'

JobKeeper and JobSeeker: new phase details

Changes to JobKeeper and JobSeeker payments will be made from 28 September 2020. Please check back for updates as further announcements are made.

Last updated: 22 July 2020

In July 2020, the Australian Government announced an extension of and changes to the JobKeeper and JobSeeker payments designed to support businesses and individuals through the COVID-19 crisis.

The next phase of payments will start in October 2020. Here is what we know so far.

What is happening with JobKeeper Payment?

The JobKeeper payment, originally designed to end in September 2020, will continue until 28 March 2021.

From 27 September, the current $1,500 per fortnight subsidy for all eligible workers will change to two payment tiers, based on hours of work.

The top tier, for employees working more than 20 hours per week, will reduce to around $1,200 per fortnight.

The second tier, for employees working less than 20 hours a week, will be approximately $750 per fortnight.

After 4 January 2021 until 28 March 2021, the JobKeeper payment rates will reduce again, to $1,000 per fortnight for tier one employees and $650 for tier two (part-time) workers.

A new eligibility test will be required for businesses to retain JobKeeper payments. Businesses will need to demonstrate a 30 per cent reduction in turnover in both the June and September quarters to remain eligible for payment in December, and continue to demonstrate a 30 per cent reduction in turnover to keep JobKeeper payments for their employees until March 2021.

Monthly testing via turnover updates to the ATO to tighten eligibility as businesses recover from the crisis, are also under consideration.

JobSeeker changes

The higher JobSeeker COVID supplement of $550 per fortnight will be reduced to $250 from October until the end of the year. This will make the JobSeeker rate approximately $800 per fortnight. People on this payment will be able to earn $300 a fortnight without reducing their payment.

Mutual obligation requirements for JobSeeker payments will restart from 4 August. This means that people will need to undertake four job searches a month to avoid penalties. Mutual obligation requirement will increase and an asset test for JobSeeker payments will also be introduced after September.

The eased eligibility requirements for sole traders to access JobSeeker payments will remain in place after the end of this year.

More information

Visit the Department of Treasury website for more information on the JobKeeper Payment extension.

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