The JobKeeper and JobSeeker subsidy payments will be extended a further six months but at a reduced rate.
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The federal government announced the details of the changes on Tuesday July 21.
Under the existing payment structure - due to end in September - the JobKeeper payment was set at $1500 for workers eligible for the scheme.
However, that saw some part-time employees receive a boost to their wages.
That has been altered to now feature a two-tiered system of wage subsidy.
Under the just-announced changes, full time workers are set to receive $1200 per fortnight under the JobKeeper wage subsidy from October to December.
The rate then drops to $1000 from January 2021 through to March 2021
Part time employees can expect $750 for JobKeeper from October before the subsidy drops to $650 from January.
The government will maintain the easing of eligibility for JobKeeper for sole traders. However businesses will need to reapply for JobKeeper testing more regularly.
The extended scheme is expected to cost the federal government around $16 billion.
We are really lucky to be living in Australia and getting the level of (government) support we are currently receiving.
- Skye Petho
Port Macquarie businesswoman Skye Petho operates Arthouse Industries on Murray Street and welcomes the continued support.
"We are really lucky to be living in Australia and getting the level of (government) support we are currently receiving," she said.
"It is great to see that this support will be there as we move forward.
"The JobKeeper payment has made quite a positive impact on our business. There is a real benefit there for us"
Ms Petho said the extension of the JobKeeper wage subsidy was also good news for Port Macquarie businesses.
She said it meant that businesses in the region would still have those jobs available for employees.
"As well, I operate a mixed business which includes retail space and accommodation space.
"For me, with people having restricted travel opportunities outside NSW we will see an increase in our tourism numbers.
"And that would be really positive as well," she said.
Lifeline Australia Chairman, John Brogden, also welcomed the decision to extend JobKeeper beyond September and adjust payments so that the essential support can be provided to those who need it most.
"JobKeeper payments have saved lives during the COVID-19 pandemic. Without it we would have seen severe stress and suicidal risk across the country," Mr Brogden said.
JobSeeker payments will also be changed at the end of September. The new rate will fall from $1115 to $815 from October.
Those on JobSeeker can also earn $300 without impacting their payments although the supplement will drop to $250 in December.
Further changes to JobSeeker are expected to be announced at the end of December.
About 3.5 million workers and over 900,000 businesses are participating on the JobKeeper payment system across Australia.
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