In just over a week from now, the Treasurer will release details of the JobKeeper review and the much-anticipated changes. Here is what we think might happen based on our experience with the program and its successes and failures.
- Casual workers will likely have their entitlement reduced from $1500 per fortnight. We aren’t sure if this will happen before the end of the current program in September or in Phase 2 after that – but we are expecting changes to reduce payouts to casuals that were otherwise being paid a lot less than $1500 a fortnight.
- The JobKeeper program will likely be extended to Phase two beyond September 27. Maybe month by month rather than three to six months.
- Any extension to the JobKeeper program will likely be subject to retesting of the 30% decline in revenue test for any Phase two.
- Any extension might be targeted at certain industries or certain regions. Theoretically, a decline in revenue test should weed this out but there are plenty of businesses getting JobKeeper that have passed the tests for reasons other than CoVid 19. The current JK program has no requirement to demonstrate the revenue reduction was caused by CoVid 19.
We will bring you a full report and analysis once Treasury makes their announcement. Stay Tuned…