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Extending JobKeeper and JobSeeker is welcomed but uncertainty remains


A carrot-and-stick scenario

When it comes to JobSeeker, there's not as much certainty.

Those without a job will see their payments fall from $1100 to $800 a fortnight in October. What happens at the end of the year is unclear at this stage.


How JobKeeper and JobSeeker will change

The Prime Minister says he is "leaning heavily in to the notion" that there will be "some continuation of the COVID supplement post-December". This signals no return, possibly ever, to the old rate of Newstart, but presumably something less generous than $800 a fortnight.

It also signals a lengthy debate between now and then over what the rate should be.


In the meantime, the Government is bringing out a carrot and a stick to encourage those on JobSeeker to find some work. The carrot is a more generous income test. Individuals will now be able to earn $300 a fortnight before losing any of their JobSeeker payment.

In fact, part-time workers will be able to earn both (the reduced rate) JobKeeper and JobSeeker at the same time. This could take their total income to just over $1,200.




The JobSeeker stick comes in the form of mutual obligation requirements, which return in just two weeks, before Melbourne's lockdown order expires.

All JobSeeker recipients will have to engage with an employment services provider by August 4 and go onto a Jobs Plan. This will require four job searches a month and penalties for turning down any job offer.

For many, the rolling mutual obligation requirement of constantly applying for work will be an entirely new experience, and not necessarily a comfortable one, particularly in the current bleak job market of Melbourne and elsewhere.





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