Over60

Money & Banking

3.5 million Aussies to get $300 pay cuts

3.5 million Aussies to get $300 pay cuts

3.5 million Australians will lose $300 from their government funded $1,500 Job Keeper pay check from September 28.

The new scheme was legislated earlier this month.

As of now, Aussies receiving JobKeeper are eligible for $1,500 per fortnight.

However, 28 September, those who are working more than 20 hours per week will receive $1,200 per fortnight.

This is around 80 per cent of the minimum wage and is called Extension 1. 

The new system is two-tiered and those who work less than 20 hours per week will receive $750 per fortnight.

"We are now extending and transitioning," Prime Minister Scott Morrison said.

"Transitioning and looking to a day when Australian communities don't need JobKeeper and when Australians can then run their businesses and hold their jobs sustained by a vibrant and growing economy instead."

The first extension period runs until 4 January, and Extension 2 will kick in from that date and last until 28 March 2021.

This scheme will see those working more than 20 hours per week eligible for $1,000 per fortnight, and those working less than 20 hours per week eligible for $650 per fortnight.

To be eligible for Extension 1, businesses will need to show that their actual GST turnover declined 30, 50 or 15 per cent (depending on the size of your business) in the September 2020 quarter compared to September 2019.

Businesses will also need to have satisfied the original decline in turnover test unless they are enrolling in JobKeeper for the first time. 

To meet the criteria for Extension 2, businesses will need to show their actual GST turnover declined 30, 50 or 15 per cent (depending on the size of your business) in the quarter ending 31 December 2020.