Tasmanians to face tougher hurdles for wage support

Tasmanians on JobKeeper will have their payments slashed and face a tight new eligibility test as it is announced the current rate will be reduced and replaced with other payments. Read the details >>

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JOBKEEPER will be slashed from a $1500-a-fortnight flat rate and replaced with two lower payments after September.

Prime Minister Scott Morrison will unveil the new two-tier system on Tuesday as well as a new, lower rate for the $550 JobSeeker coronavirus payment.

Both payments will continue at their current rates until September, but businesses will be forced to requalify for JobKeeper under a tighter eligibility test in October.

Treasurer Josh Frydenberg and Prime Minister Scott Morrison during a press conference at Parliament House on June 18, 2020 in Canberra, Australia. Picture: Sam Mooy

Workers who were earning more than $1500 a fortnight before COVID-19 will get the higher of the two JobKeeper payments under the new system, while those earning less will be put on the lower rate.

Up to a quarter of the 3.5 million workers receiving the wage subsidy could be put on the lower rate.

It’s expected the payment will be extended until at least Christmas and potentially until March, adding billions to the current $70 billion cost of the package.

A review by the federal Treasury Department of the payment’s first three months found the lower rates could be needed to “wean” businesses off taxpayer-funded support.

Business groups also provided feedback to the review that some workers had been reluctant to take extra hours or return to work while receiving the payment.

“Treasury’s overall assessment is that an extension to JobKeeper is needed, coupled with a fresh eligibility test to ensure that JobKeeper is well targeted,” the review found.

Treasurer Josh Frydenberg said JobKeeper had been an “economic lifeline to millions of Australians”.

“That lifeline will be extended for those businesses that need it most,” Mr Frydenberg said.

Finance Minister Mathias Cormann said while the government recognised it would need to be extended, it also wanted to get businesses “back into a situation where they are able to pay for the wages of their employees out of their income.”