Future of the JobSeeker payments extended to December 2020
Future of the JobSeeker payments is changing, the government has committed to extending the coronavirus supplement beyond the currently legislated end date of 24 September for a further three months to 31 December 2020.
Future of the JobSeeker payments has changed, the supplement of $550 per fortnight which effectively doubled various social security payments will be reduced to $250 per fortnight from 25 September, effectively slashing the JobSeeker from $1,100 currently to $800. Along with lowering of the payment rate, the asset testing and the liquid assets waiting period will also be reinstated.
Since 27 April 2020, a Coronavirus supplement of $550 per fortnight has effectively doubled the rate of certain social security payments (eg JobSeeker, Youth Allowance, and Austudy). Individuals eligible for these payments received the full amount of the $550 Coronavirus supplement on top of their payment each fortnight. With the supplement set to end on 24 September, the government has sought to provide some certainty for recipients around the future of the JobSeeker, particularly in the middle of a second wave in one of Australia’s most populous states, while at the same time ensuring the future of the JobSeeker payments.
Future of the JobSeeker payments have been ensured, the government has committed to extending the payment period of the Supplement from 25 September 2020 to 31 December 2020 albeit at a reduced rate of $250 per fortnight. This effectively slashes the JobSeeker payment from $1,100 currently to $800 a fortnight.
According to the government, the lowering of the Supplement reflects the gradually improving economic and labour market conditions and is designed to ensure there are appropriate incentives for payment recipients to seek out employment and study opportunities.
Future of the JobSeeker payments comes along with the lowering of the payment rate, the government has also signaled its intention to reinstate means testing from 25 September 2020. This means that asset testing for all payments will be reinstated, for both existing and new recipients. The asset limits for when the income support will cancel are as follows:
|One partner eligible, combined assets.||$401,500||$616,000|
Future of the JobSeeker payments will bring change that would be most concerning for Australians seeking to apply for the JobSeeker after 24 September would be the reinstatement of the Liquid Assets Waiting Period. New claimants for the JobSeeker from 25 September 2020 and a range of other payments will have to wait between 1 and 13 weeks to receive any payments if they have savings equal to or more than $5,500 (single with no dependants), or $11,000 (partnered or single with dependants). Those unfortunately enough to need to the payment will once again have to wait and run down their savings in order to receive the payment.
Individuals already on the JobSeeker are not completely off the hook, the gradual reintroduction of the mutual obligation requirements has started taking place requiring payment recipients to attend appointments, look for work or participate in activities. This can include voluntary job searches, at least one phone or online appointment with a jobseeker’s employment services provider, or voluntary participation in activities (either online or in person). At this stage, there is no payment suspensions or penalties for failure to comply with mutual obligations requirements, but it is likely to be reimposed at a later time.
The future of the JobSeeker is changing but it is not all bad news, to support payment recipients through these changes and encourage a majority of recipients to get additional work, the government has increased the income free area of the JobSeeker payment from 25 September 2020 to 31 December 2020 to $300 per fortnight. This means that recipients of the payment can earn income of up to $300 per fortnight and still receive the maximum payment rate. The partner income test cut-out will also be increased from 25 September to $3,086.11 per fortnight ($80,238.89 per year) for individuals with no personal income.
Future of the JobSeeker payments, will you be eligible?
Future of the JobSeeker has changed, If you’d like to find out whether you or your partner will still be eligible for the payment come 25 September, we can help. Contact us today for advice on the future of the JobSeeker or any other government support initiatives.
Hunter Partners are Accountants, Tax Agents and Financial Planners. We can assist you with all aspect of your accounting, tax and financial planning requirements, call Hunter Partners on (07) 4723-1223.
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