Esther Lauaki
Workers in hard-hit areas like Sunshine and St Albans stand to miss out on more than $8 million in fortnightly payments with the JobKeeper supplement dropping from $1500 to $1200, a recent study has shown.
The federal government JobKeeper program – a support measure that subsidised $1500 of eligible employees’ wages each fortnight – has been extended until March next year with payments to reduce over time.
The first $300 drop in the subsidy for employees working over 20 hours per week came into effect on September 28, with the payment slashed to $750 for employees working less than 20 hours per week.
The report, Crossing the Fiscal Cliff, recently released by The McKell Institute’s Edward Cavanough, revealed that Sunshine and St Albans would be most heavily impacted by the payment reduction.
Other Brimbank suburbs including Deer Park, Albion and Delahey faced a reduction of between $1.5 million and $2.3 million in fortnightly payments.
“The JobKeeper program has been essential in enabling employers to retain staff in preparation for a return to a degree of economic normality once the worst of COVID-19 has subsided,” Mr Cavanough, the Institute’s policy director, said.
“Payments will again be reduced in January 2021… to $1000 a fortnight – a decision expected to have real consequences on employment, significantly impacting aggregate demand and ultimately dampening and slowing the pace of economic recovery.”
Deer Park laborer John Samuelu said that a reduction in the payment would mean that he could receive less than $500 a week to support his family of four.
“We could barely afford rent and bills on that let alone shopping for anything else like clothes,” Mr Samuelu said.
“I don’t know what I will do yet… we’ll have to cross that bridge when we get to it.
“I think we’ll either have to move in with family or go home to New Zealand.”
