Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume.WatchDuration: 2 minutes 28 seconds2m 28s Scott Morrison outlines changes to JobKeeper paymentsShareFacebookTwitterArticle share optionsShare this onFacebookTwitterLinkedInSend this byEmailMessengerCopy linkWhatsAppPrint contentPrint with images and other mediaPrint text onlyPrintCancelPayments will be cut, but unemployed Australians and workers on the Federal Government's coronavirus wage subsidy program will continue to receive support beyond the planned JobSeeker and JobKeeper end date.Key points:JobKeeper will fall from $1,500 a fortnight to $1,200 a fortnight in September and fall again in 2021People working fewer than 20 hours a week will receive $750 in September and $650 in 2021The JobSeeker payment will fall from $1,100 to $800 a fortnight in SeptemberThe JobKeeper wage subsidy will continue until March next year, but payments will fall from $1,500 to $1,200 a fortnight after September. People working fewer than 20 hours a week will receive $750.The payments will fall again to $1,000 a fortnight, and $650 a fortnight for people working fewer than 20 hours, for the first three months of 2021.The JobSeeker coronavirus supplement will continue for another three months but fall from $550 to $250 a fortnight, meaning people on the program will receive $815 a fortnight after September.Coronavirus latest: Follow all the latest information in our COVID-19 live blog.More than 5 million Australians receive payments from the JobKeeper and JobSeeker programs.The JobKeeper wage subsidy is paid to 960,000 employers, who then pass the full payment onto 3.5 million workers.Businesses will have to prove they're still in financial distress each quarter, down at least 30 per cent on pre-pandemic levels, to remain eligible for the program after September.The Government expects the expanded JobKeeper program will take the cost of the program to about $86 billion.It is forecasting 1.4 million people will be on JobKeeper in the final three months of this year and 1 million people during the first quarter of next year."JobSeeker and JobKeeper are not do-nothing payments," Prime Minister Scott Morrison said."JobSeeker and JobKeeper are payments that support people's incomes but are not designed to prevent them from going out and seeking work."The official unemployment rate is 7.4 per cent but the effective rate, excluding government support like JobKeeper, is more than 11 per cent. It had been above 13 per cent in recent weeks.JobSeeker coronavirus supplement cutThe JobSeeker payment replaced the former Newstart unemployment payment when coronavirus struck.The Government effectively doubled the old Newstart rate, applying a $550 coronavirus supplement.The revised JobSeeker program will allow recipients to earn $300 a fortnight before facing a reduction in their Government payment.The program will be reviewed again before December and the Prime Minister said he expected a coronavirus supplement was likely to be continued into 2021.People on JobSeeker will be required to apply for more jobs than required earlier in the pandemic and failure to take a job means people risk losing the payment."So, if there is a job to be taken and a job that is being offered, then it is an obligation, a mutual obligation, for those who are on JobSeeker to take those jobs where they're on offer," Mr Morrison said.Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume.WatchDuration: 2 minutes 4 seconds2m 4s Scott Morrison announces JobSeeker cut following reviewJobKeeper changes following criticismSince the Government established JobKeeper at the height of the coronavirus crisis, businesses have been paid a flat rate of $1,500 each fortnight for every staff member they kept on their books.About a quarter of recipients of the flat-rate payment earned more money under JobKeeper than they did pre-pandemic, prompting criticism from within the Coalition about the generosity of the program.Those recipients received an average of $550 a fortnight more on the program."JobKeeper has a number of features that create adverse incentives, which may become more pronounced over time as the economy recovers," a Treasury review of the program found. Labor's economic leaders Jim Chalmers and Katy Gallagher say the Opposition will likely support the JobKeeper extension.(ABC News: Ian Cutmore)Mixed reaction to payment changesLabor's leaders said the Opposition was likely to support the Government's JobKeeper changes, but criticised the program for having paid some people more than they earned before the pandemic.Leader Anthony Albanese and Shadow Treasurer Jim Chalmers criticised the Government for failing to permanently lift unemployment benefits. But neither would say what rate they thought the new permanent JobSeeker rate should be.The Greens' Sarah Hanson-Young said the crossbench party wouldn't support any changes that reduced JobKeeper and JobSeeker payments.Coronavirus questions answeredBreaking down the latest news and research to understand how the world is living through an epidemic, this is the ABC's Coronacast podcast.Read moreThe Australian Council of Social Services' Cassandra Golding said the cut to the coronavirus supplement would be distressing for people receiving it, and again called on the Government to set a new permanent rate for JobSeeker.The Australian Council of Trade Unions said it supported the extension of both programs. Secretary Sally McManus said allowing people to earn $300 on JobSeeker was a welcome change, but it would only benefit those who could find work.Industry groups also backed the extension, but warned more support was needed to prevent businesses from closing their doors."Once that support is pulled away, I think you'll see a lot of businesses and a lot of business owners make the decision that it's all too hard, and they'll walk away," the Australian Industry Group's Innes Willox said."I think it will be pretty deep, and very tough, for a long time to come."Read more about coronavirus:Tighter restrictions loom if Victoria's coronavirus 'rollercoaster' doesn't slow downThe Daniel Andrews brand is damaged. Here's what the politics mean for the pandemic
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