Welfare recipients could earn $65 more than some JobKeeper staff
Welfare recipients could take home $65 a fortnight more than part-time workers on JobKeeper, under the extended scheme, despite PM Scott Morrison warning people were gaming the old system.
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JOBKEEPER wage subsidies will be continued until at least March under a $16 billion extension, but part-time workers could end up pocketing $65 a fortnight less than those on welfare.
Employer groups say the return of the requirement for welfare recipients to be applying for jobs will “taper off” people who try to game the system, but not eliminate it.
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The Treasury review into the payments confirmed the inflated JobSeeker welfare payments could impact businesses looking to rehire staff as the economy reopens.
Prime Minister Scott Morrison and Treasurer Josh Frydenberg yesterday announced an extension of the JobKeeper wage subsidy for six months and inflated JobSeeker welfare payments until the end of the year, both at a reduced rate.
From October to the end of December JobKeeper will drop from $1500 to $1200 a fortnight for staff working at least 20 hours a week, and $750 for those on less than 20 hours a week in the four weeks prior to March.
It drops again to $1000 and $650 for the lower payment from January to March.
But the JobSeeker welfare payment will be $815 a fortnight, with the base rate of $565 continuing but the supplement dropping to $250.
Mr Morrison defended to payment system, saying employers would be able to pay additional wages, on top of part-time JobKeeper, to staff working more hours.
“Those businesses that may still require (JobKeeper), they will be making payments in addition to JobKeeper to staff doing additional hours,” he said.
From August 4 welfare recipients will have to apply for at least four jobs a month and will be penalised if they do not accept offers.
“So if there is a job to be taken and a job that is being offered, then it is an obligation for those who are on JobSeeker to take those jobs where they’re on offer,” Mr Morrison said.
Restaurant and Catering Australia boss Wes Lambert said the return of mutual obligations for JobSeeker recipients would limit people turning down jobs.
“It comes with strings attached. It will taper off that behaviour,” he said.
Chamber of Commerce and Industry Queensland spokesman Gus Mandigora said no policy was perfect when dealing with an unprecedented crisis, but the balance seemed right.
“It would take a really brave person to abandon that connection with their employer,” he said.
The Treasury review found increases to the dole through the coronavirus supplement had created a new “floor” wage below which there was “no direct financial incentive to work”.
“For businesses that are beginning to recover and re-hire staff who they may have made redundant … this floor may limit the available supply of labour depending on the hours and wage rate on offer,” the report says.
It predicted the “adverse impacts” of the disincentive to work would be “modest” while unemployment remained high and would be offset by measures such as reintroducing mutual obligations but could “rise over time”.