I don’t know about you, but my head is spinning. I am however loving the word ‘job’ included in all these new programs. First, it was the announcement of the Job Maker, with the government investing in the arts industry and key infrastructure projects. Then late last week we learned about Job Trainer, with a focus on upskilling & reskilling to get people into the workforce. Today Prime Minister Scott Morrison announced the plan for Job Keeper & Job Seeker to Australia. Here’s a breakdown.
Job Keeper & Job Seeker
21/7/20
Today our Prime Minister, Scott Morrison and Treasurer, Josh Frydenburg have laid out the plans for Job Keeper and Job Seeker over the next few months.
Scott Morrison stated that Job Keeper has provided $30 billion to almost 960,000 businesses supporting 3.5 million employees since it was introduced.
Job Keeper
Since this scheme started all employees who were eligible for Job Keeper have been paid a flat rate of $750 per week regardless of the number of hours they previously worked. This was introduced to enable the government to swiftly support people through this crisis.
Now the government plans to introduce a 2 tier payment to run from the end of September 2020 through until the end of March 2021.
September 2020
From September payments will be cut to $1200 per fortnight and $750 per fortnight for those that work less than 20 hours per week. Businesses will have to prove that each quarter they are still being impacted financially and meet the criteria set by the government to qualify for the subsidy payment.
January 2021
From January 2021 payments will be lowered further to $1000 per fortnight and $650 per fortnight for those working less than 20 hours per week.
Job Seeker
Since the start of this pandemic 2 million Australians have lost their jobs or seen hours significantly reduced. The Job Seeker COVID supplement will continue until the end of the year. The current amount paid will last until the end of September. Here are some of the changes:
- Going forward the income free area will be $300 per fortnight allowing individuals to earn up to this amount and still be able to apply for job seeker without receiving a reduction in their payments.
- The COVID supplement will be reduced from $550 to $250 and will continue to be paid until the end of the year when it will once again be reviewed.
Two phased approach
Going forward from the 4th of August, people will once again need to connect with employment services. Each month they will need to apply for a minimum of 4 jobs. Where a job offer is received it is expected that the individual will take that role.
In the second phase from the end of September, there will be a requirement for a higher rate of job search. Other tests will once again be resumed as part of the process to qualify for Job Seeker.
Job Trainer
17/07/20
The government has unveiled a skills investment program called Job Trainer. It’s all about upskilling and reskilling in areas of demand so our unemployed, who have lost their job during COVID-19 can get back into the workforce.
Job Trainer aims to create approximately 340,700 places nationally to re-skill people who are currently looking for a job, or those kids leaving school wanting to get into the workforce.
People seeking jobs will be able to complete short courses for free or low-cost. These new skills will be acquired in industries and areas of high-demand.
“The jobs and skills we’ll need as we come out of the crisis are not likely to be the same as those that were lost.” – Prime Minister Morrison
Some of the areas the government is targeting include healthcare and social assistance, transport, postal and warehousing, manufacturing, retail trade, and wholesale trade. These industries have been flagged for future job growth. However it will vary in each state and territory depending on their individual needs.
Apprentices & Trainees
As well as Job Trainer, the Government is continuing to subsidise the wages of apprentices and trainees that are currently employed.
Earlier this year, a $1.3 billion stimulus program was announced to make sure apprentices kept their jobs. If you already employ an apprentice or trainee, the existing subsidy in place for employees will continue until the end of March.
The government is focused on creating new training places, training in the areas of demand, reforming training, and focusing on skills, relevance, and jobs.
Job Maker
Mid-June
The government announced the Job Maker plan for our road out of COVID-19. The Australian arts industry is one of many on this list. With thousands of jobs lost, a $250m package has been announced.
“Our JobMaker plan is getting their show back on the road, to get their workers back in jobs,” said Prime Minister Morrison.
Some of the packages include:
- Seed Investment to Reactivate Productions and Tours
- Show Starter Loans
- Kick-starting Local Screen Production
- Supporting Sustainability of Sector-Significant Organisation
- Creative Economy Taskforce
Minister Fletcher said: “We are backing over 600,000 Australians in the cultural and creative sectors whose work contributes $112 billion to our economy. These sectors have been hit hard during the pandemic, and the Government’s investment will play an important role in the nation’s economic recovery.”
Infrastructure
The government is also focused on fast-tracking 15 major infrastructure projects like inland rail from Melbourne to Brisbane and a second underwater power cable to Tasmania. This will help fast-track jobs on major infrastructure.
It is a decision that would support “over 66,000 direct and indirect jobs” said the Prime Minister.
The Prime Minister has also announced $1.5 billion in funding for “small priority projects” in all states and territories.
Mr. Morrison says the Government has brought forward or provided additional funding for infrastructure investment of just under $10 billion in the past eight months.
The Prime Minister also outlined plans to speed up deregulation, arguing Australia had benefited from agile and flexible regulation practices during the corona virus crisis.
HomeBuilder
HomeBuilder is designed to encourage homeowners to recommence or commence their renovations or new builds.
With a grant of $25,000 to build a new home or substantially renovate an existing home, the government wants to ensure there will be jobs retained in the industry.
- You need to be an adult Australian citizen with a taxable income less than $125,000 a year. If you live with your partner, your combined income has to be less than $200,000 per year
- Before the end of the year, you need to enter a contract to renovate or build your main place of residence, with construction to begin within three months of the contract date (no investment properties)
- For renovations, you need to spend between $150,000 and $750,000 of your own money, and the house you’re renovating must be valued at less than $1.5 million prior to renovations
- Renovations need to improve the accessibility, safety or liveability of the home and don’t include external work like swimming pools, tennis courts and sheds
- For new builds, the total value of the completed home needs to be less than $750,000, including land
References:
7 NEWS: Jobkeeper extended at new rate until March 2021 PM confirms {Accessed 21/7/20}
ABC: Government unveils job trainer program for school leavers struggling to find work amid coronavirus pandemic {Accessed 21/7/20}
PM Government: Jobmaker plan to restart Australia creative economy {Accessed 21/7/20}
ABC: Scott Morrison job maker fast tracts major projects coronavirus {Accessed 21/7/20}
ABC: key points from Scott Morrisons address to the national press club {Accessed 21/7/20}
ABC: The Government’s HomeBuilder scheme offers $25k for home renovations — but not everyone will qualify {Accessed 24/7/20}
