JobKeeper payment: Hospitality workers to benefit from subsidy package

A key feature of the government’s JobKeeper wage subsidy has been widely overlooked – and it could be good news for scores of Aussies.

The Government’s landmark JobKeeper scheme has been described as a “lifeline” for Aussie workers struggling through the unprecedented coronavirus crisis.

The $130 billion wage subsidy will guarantee eligible workers $1500 per fortnight as part of a nationwide plan to keep workers in jobs and businesses afloat as the pandemic rages on.

But while most of the attention so far has been on how the subsidy will work and who will benefit or be excluded, one key detail has been widely overlooked.

And it’s good news for scores of employees – who might actually be better off under the relief package than they were beforehand.

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That’s because all eligible workers will be paid at a flat rate, meaning everyone who accesses the scheme will be paid the same sum of $750 per week.

That’s regardless of your usual wage, and it means lower paid, part-time staff – especially those in industries where they may only work several shifts per week – could soon be earning more than they did at the start of the public health disaster.

Professor Tom Smith, Head of Applied Finance at Macquarie Business School, has welcomed the package and said it would help to “keep the economy going”.

He said one of the “upsides” of the scheme was that hospitality workers would especially benefit.

“If you are in hospitality and only doing one shift a week part-time, you would only get around $200 per shift or $400 a fortnight, whereas the JobKeeper gives you $1500 per fortnight,” he explained.

“It doesn’t discriminate. You will still get $1500 per fortnight regardless of the number of shifts you do per week.

“Overall it’s a really good scheme and it has a breadth of coverage. The government needs to be congratulated.”

According to SmartCompany, this loophole means some Australians will end up earning “significantly more than they usually would”, although it will be the government and not their employers who foot the bill.

The Morrison Government’s JobKeeper payment doesn’t discriminate, which means some people might end up earning “significantly more”. Lukas Coch/AAP

“The idea seems to be that, even if they’re not actually working, this allows you to keep your employees on the books. That way, when it’s all over, they still have a job and you still have trusted staff,” the publication claims.

That is confirmed by the government’s own website, which explains that for participating workplaces, “If an employee ordinarily receives less than $1500 in income per fortnight before tax, their employer must pay their employee, at a minimum, $1500 per fortnight, before tax.”

“Under the JobKeeper Payment, businesses significantly impacted by the coronavirus outbreak will be able to access a subsidy from the government to continue paying their employees,” the website states.

“This assistance will help businesses to keep people in their jobs and restart when the crisis is over.

“For employees, this means they can keep their job and earn an income – even if their hours have been cut.”

The JobKeeper payment is temporary and will be in place for six months.