The main difference between job seeker and job keeper is their purpose. The job seeker payment is an attempt to financially assist the unemployed while the job keeper payment is an attempt to assist employers to retain employees.
The Coronavirus threat has crippled many businesses and organizations throughout the world, resulting in massive job losses. Job Keeper is a new payment scheme introduced by the Australian government to help businesses to retain employees. The government has also expanded the Job Seeker payment category and introduced a Coronavirus Supplement for those eligible for these payments.
Key Areas Covered
1. What is Job Seeker Payment
– Definition, Eligibility, Payment
2. What is Job Keeper Payment
– Definition, Eligibility, Payment
3. What is the Difference Between Job Seeker and Job Keeper
– Comparison of Key Differences
Key Terms
Coronavirus Supplement, Job Keeper, Job Seeker
What is Job Seeker Payment
Job seeker payment is a financial aid provided by the Australian government for unemployed citizens. Those unemployed and looking for work, or those doing approved activities to find a job are eligible for this payment. Sick or injured people who are unable to do their usual work or study for a short period of time are also eligible for this payment. The payment amount actually depends on the recipient’s personal situation; for example, children, partner, income earned in the last 14 days, etc.
Eligibility Criteria
Receivers of this payment should fulfil the following basic criteria:
- Aged between 22 and Age pension age
- income and assets are under the test limits
- Must be an Australian resident, living in Australia on the day you claim the payment
Due to the Coronavirus threat, the Australian government has made several amendments to the criteria of jobseeker payment. This payment is now available to employees who lost their jobs, sole traders, self-employed, casual workers and contract workers who meet the income test as a result of the economic downturn due to COVID-19. Moreover, the government has also waived the asset test and the one-week waiting period.
There is also a new Coronavirus Supplement, to be paid for both existing and new recipients of the Jobseeker payment. They will be paid an amount of $550 per fortnight, starting from 27th April 2020. For more details on this supplement, press here.
What is Job Keeper Payment
Job keeper payment is a wage subsidiary introduced by the Australian government to help employers to retain employees. Under this payment system, the government will pay eligible employers $1,500 per fortnight for each eligible worker. Both employers and employees must meet specific criteria in order to be eligible for job keeper payment. Australian businesses (companies, trusts, partnerships, etc.) and non-profit organizations are eligible employers for this category. Note that major banks in Australia, as well as public sector employers, are not eligible.
Eligibility Criteria
For Employers
- Employ at least one eligible employee on 01.03.2020
- Company must face:
30% fall in turnover (for an aggregated turnover of $1 billion or less)
50% fall in turnover (for an aggregated turnover of more than $1 billion), or
15% fall in turnover (for ACNC-registered charities other than universities and schools)
For Employees
- Must be employed by an eligible employer by 03.2020
- Must be at least 16 years of age
- Should be full-time, part-time, or long-term casuals employed on a regular basis for longer than 12 months as at 03.2020
- Should be an Australian resident as at 01.03.2020, and must be an Australian citizen, holder of a permanent visa, or a Protected Special Category Visa Holder.
The Australian government has estimated that around six million employees will benefit from this payment. Eligible employers will be paid $1,500 per fortnight per eligible employee from 30.03. 2020, for a maximum of six months.
Difference Between Job Seeker and Job Keeper
Definition
Job seeker payment is a financial aid provided by the Australian government for unemployed citizens while job keeper payment is a new financial aid introduced by the Australian government to help employers to retain employees.
Purpose
The job seeker payment is an attempt to financially assist the unemployed while the job keeper payment is an attempt to help employers to retain employees.
Eligibility
Unemployed people aged between 22 and Age Pension age, and employees who lost their jobs due to COVID-19, sole traders, self-employed, casual workers and contract workers who meet the income test as a result of the economic downturn due to COVID-19 are eligible for job seeker payment. Australian businesses (companies, trusts, partnerships, etc.) and non-profit organizations who have faced losses (see eligibility criteria above) are eligible employers for Job keeper payments
Payment
The payment amount of job seeker depends on the personal situation of the recipients; they will also receive a Coronavirus Supplement of $550 per fortnight. In contrast, job keeper payment category pays $1,500 per fortnight.
Conclusion
The job seeker payment is an attempt to financially assist the unemployed while the job keeper payment is an attempt to help employers to retain employees. Moreover, the payment amount of job seeker depends on the personal situation of the recipients; they will also receive a Coronavirus Supplement of $550 per fortnight. In contrast, job keeper payment category pays $1,500 per fortnight. This is the main difference between job seeker and job keeper.
Reference:
“Increased and Accelerated Income Support.” Support for Businesses in Australia, 15 Apr. 2020, Available here.
“JobKeeper Payment for Employers and Employees.” Support for Businesses in Australia, 16 Apr. 2020, Available here.
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