Changes loom for ‘next phase’ of $1500 JobKeeper payment

The push to extend JobKeeper for another six months could involve scaling back the payment for some workers, who were previously earning less than the $1500 a fortnight.

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The $1500 fortnightly JobKeeper payments would be cut back for some employees under a push to extend the COVID-19 lifeline for an extra six months.

The hard-hit tourism sector is among those pushing for the one-size-fits-all payment to be reduced for staff whose usual salary was less than the JobKeeper rate.

One in five of the 3.3 million Australians on the wage subsidy would have payments slashed, new Australian Bureau of Statistics data shows.

It comes as Prime Minister Scott Morrison confirmed “there will be a next phase” of JobKeeper after September.

JobKeeper payments would be cut back to less than $1500 a fortnight for some employees under a push to extend the temporary coronavirus lifeline for six more months. Picture: iStock

Mr Morrison, who was handed a review of the first three months of the scheme on Monday, said the next phase would be targeted “to the people who need it most”.

“There are a number of industries that will continue to be affected by restrictions, particularly in the aviation sector in the tourism and hospitality sector, particularly those that were highly dependent on international travel,” he said.

“There’s lots of parts of the events and entertainment industry, the conference business (sector), things like that.”

Changes to the JobKeeper scheme, which costs about $10 billion a month, will be announced on July 23 by Treasurer Josh Frydenberg.

The Australian Tourism Industry Council is one of the industry bodies that wants the scheme extended for six months while borders remain closed, but changed so employees who earned less than $1500 a fortnight before coronavirus could be paid their usual wage.

The council also wants the scheme extended to casuals.

“The program should be extended and maintained for existing or now qualified businesses and, importantly, this captures the tens of thousands businesses across our beleaguered tourism and visitor economy,” executive director Simon Westaway said.

Australian Hotels Association SA boss Ian Horne backed casuals staff being eligible and payments being capped at pre-COVID-19 levels for staff whose usual income was less than the JobKeeper rate.

He also called for the wage subsidy to be extended to March 2021.

Prime Minister Scott Morrison says the next phase of JobKeeper will be more targeted. Picture: AAP

The Business Council of Australia has also urged the Government to rethink “overpayments” to individuals earning less than $1500 a fortnight before JobKeeper.

One in nine Australians aged over 18 is on JobKeeper payments.