Keep in the loop

Check your bank and credit card statements to spot any unnecessary spending

THE end of JobKeeper as we know it is approaching fast, and both workers and business owners need to check up on their situation.

From September 28, the wage subsidy program — which has been credited with keeping millions of workers connected to their employers — is set to be extended for another six months, but payments will be scaled back.

JobKeeper payments will drop from $1500 a fortnight to $1200 a fortnight, and to $750 a fortnight for people working less than 20 hours a week.

Businesses will have to prove they have actually suffered declining turnover rather than simply projecting a decline, which was allowed when JobKeeper launched five months ago.

The payment is set to fall further in January to $1000 a fortnight — or $650 for those working less than 20 hours — as the government tries to wean workers and businesses off the expensive program.

Many businesses have reopened after the original coronavirus shock and shutdowns.

Some have almost fully recovered and others have powered ahead.

However, COVID-19 is still creating financial pain for millions — particularly in Victoria

— and JobKeeper’s extension will help.

Shrinking JobKeeper payments will cause some anger but the program has created a few costly and unintended consequences. Think casual employees refusing to show up for work because they’re getting higher JobKeeper payments anyway, or bosses booking bigger profits because JobKeeper is paying their wages.

If you’re affected, here’s what to examine now.

Falling JobKeeper payments will dent the incomes of many, so now is a good time to check household spending before the decrease arrives.

Many people have handled reduced incomes by cutting back on their discretionary spending — some of it forced in areas such as tourism and entertainment.

Check your latest bank and credit card statements online to see if you can spot any unnecessary spending or direct debits that you might have forgotten about.

There’s a mountain of tips and hacks online for saving money, and lots of little changes can add up to unexpectedly large savings.

Lenders have been pretty flexible around loan repayment deferrals for customers who need them, so don’t be afraid to speak up.

People can also withdraw up to $10,000 from their superannuation savings if they meet certain hardship conditions. Millions have done this already, but only do it if you’re really stuck — spending your super on a home entertainment system is stealing from your future wealth.

Are you frustrated by workers taking advantage of the JobKeeper situation while you’re trying to stay afloat during a pandemic?

Or not sure about your business’s future eligibility?

There’s a pile of information available online at websites belonging to the ATO and Fair Work Commission.

Accountants and advisers are offering help, some of it for free, while workplace specialist group Employsure offers a free initial advice helpline.

The Fair Work Ombudsman has a dedicated COVID-19 information page at coronavirus.fairwork.gov.au that explains how the coronavirus affects work rights and responsibilities.

The Fair Work Commission has also made decisions and determinations about award and agreement flexibility during COVID, so visit fwc.gov.au if you’re into that sort of stuff.