JobKeeper crunch time
CUTS to JobKeeper payments come into effect from today in a test for the resilience of Australia’s economy.
JobKeeper payments will be reduced from $ 1200 a fortnight to $ 1000 for employees doing more than 20 hours a week and from $ 750 to $ 650 for those doing less than 20 hours a week.
Figures show 6680 Tasmanian businesses claimed the subsidy for their employees in the December quarter, worth $ 93.7m.
ABOUT half of all businesses that sought JobKeeper support are still reliant on the wage subsidy program, which is being cut on Monday.
New Australian Taxation Office data shows 520,373 businesses were receiving wage subsidies in December but this has plummeted from 1.036 million in October.
Victoria remains the state most reliant on the wage subsidy program with 196,900 needing financial support, followed by NSW at 167,946 and Queensland at 81,301.
In the December quarter about $ 7bn was paid out in wage subsidies alone.
Industries with the most businesses on JobKeeper payments included construction ( 89,600), professional, science and technical services ( 78,800), transport, and postal and warehousing ( 52,200). From Monday, JobKeeper payments will be reduced from $ 1200 per fortnight to $ 1000 fortnight for workers doing more than 20 hours per week.
For employees doing less than 20 hours a week Job
Keeper payments will drop from $ 750 to $ 650 a fortnight.
Treasurer Josh Frydenberg ( pictured) said the nation’s economy was rebounding as hundreds of thousands of Australians returned to work but there was still some way to go.
“With 734,000 jobs created over the last six months our economic recovery is well under way with fewer businesses and their employees in need of JobKeeper and other temporary economic supports,” he said.
Council of Small Business Organisations of Australia chief executive Peter Strong said many businesses would reassess staff numbers as JobKeeper was wound back.
“They will work out how many staff they can keep and they will be making decisions based on projected income and that income will be less because JobKeeper is going,” he said.