JobKeeper changes will hurt low-income workers: Labor

Labor is warning that people on award minimum rates could experience even bigger pay cuts under JobKeeper 2.0.

Low-income workers who no longer receive JobKeeper should not be paid less than those that do, Opposition industrial relations spokesman Tony Burke says.

The Federal Government on Wednesday introduced changes to its $1500 wage subsidy to extend the payments beyond September 27.

Under the move, businesses that are no longer eligible for JobKeeper but have a drop in revenue between 10-30 per cent have been given the green light to slash workers’ hours by 40 per cent.

But Labor will move an amendment to ensure no worker can end up on less than the JobKeeper rate.

Mr Burke said the scheme would cost people on the minimum wage up to $300 a week from their pay packets.

“The Government’s changes mean that a full-time minimum wage worker at a legacy business … could have their hours slashed by 40 per cent, knocking their take-home pay from $753 a week to $450,” he said.

Labor is hopeful its second amendment can get through the Senate with support from the crossbench.

However, it will not stand in the way of the support measure continuing.

The six-month extension will take the total program cost to $101.3 billion and introduce two payment tiers based on the number of hours worked.

From September 28, the payment will be cut from $1500 a fortnight down to a maximum of $1200 for full-time workers and $750 for people working fewer than 20 hours a week until December.

From January, the two tiers will then drop to a maximum of $1000 and $650 respectively.

Business Council chief executive Jennifer Westacott said the JobKeeper changes would save jobs in the hardest-hit sectors and give businesses the ability to adapt.

“This package will save tens of thousands of jobs by giving still struggling businesses who are not eligible for payments room to move, adapt and ramp up quickly,” she said.

“Extending temporary flexibility measures will give businesses floored by COVID-19 but not receiving JobKeeper payments a welcome alternative to closing their doors, lay-offs and redundancies.”

Labor industrial relations spokesman Tony Burke and Attorney-General Christian Porter in parliament. Mr Porter has been tasked with leading IR reform in several key areas. Picture Kym Smith

PSYCHOLOGY STUDENTS EXEMPT FROM FEE HIKES

A major overhaul of the higher education sector will now exempt students studying psychology and social work from fee hikes.

The contentious Job-Ready Graduates legislation, introduced in the House on Wednesday, will increase the price of humanities subjects while slashing the cost of science subjects.

Regional Education Minister Andrew Gee lobbied for the changes, saying the legislation would make it harder to attract mental health workers to country regions.

To offset the reduction, students will face maximum annual increases of $250 for subjects in bands one and two.

Universities also had a win with a floor in the level of funding they will receive being enshrined in law.

A $5000 tertiary access payment for outer regional, rural and remote students will also be issued as a scholarship for universities, based on historical enrolment of regional students.

Under additional amendments also being introduced on Wednesday, Australian higher education students who pay for their studies upfront will be protected from losing their money if their private provider stops teaching or shuts down.

If passed, private higher education providers will no longer have to pay for commercial tuition protection insurance for students who pay upfront.

The changes would come into effect from January 2021.