As countries all around the world begin to pick themselves up after the effects of COVID-19, the Australian government has been putting plans in place to keep the economy afloat, while keeping the health and safety of its citizens as a priority.
While some states have been very fortunate, and others not as much, government wage subsidies such as Jobseeker and Jobkeeper have since been announced to have end dates, which can affect many Australians, especially as the job market has taken a toll from the pandemic. Communities all over the country have adopted distancing measures, and followed health experts’ advice in order to minimise the risk for the spread of the virus. This has meant businesses and establishments are just now reopening back up again, as the number of cases in their respective states have lowered.
As we as a country begin to settle into our new normal, sticking to social distancing requirements and keeping ourselves safe, the question on a lot of people’s minds has been how to keep themselves afloat after this global pandemic. While government stimulus packages have been extremely beneficial as we have kept ourselves safe, it’s also important to look to the future, and make plans for our new normal.
Jobseeker is a payment that replaced Newstart Allowance and Sickness Allowance. You need to be an Australian Permanent Resident, or a Citizen, and be 22 years or older. You must also have no employment, or lost income and employment as a sole trader, self-employed person, casual worker, contract worker, or permanent employee. What you get depends on your circumstances.
Prior to the pandemic, single people on Jobseeker would get a fortnightly amount of $565.70, and this rate changes if you have dependents, are aged 60 or older, have a partner, or are a single principal carer.
The government has since added a coronavirus supplement of $550 to assist jobseekers as they navigate the job market during this period. Jobseeker is in place to ensure that while unemployed, people are able to afford food and housing for themselves, so that they can focus on finding a job that can support their needs. This supplement not only supports jobseekers, it also helps keep the economy afloat, ensuring that people have the money to spend on their households and business are kept open.
However, it is also important to note that from late September, this supplement will be cut back to $250, which will then end on the 31st of December. This sizable reduction of the supplement can affect household spending for thousands of households all over Australia. People on Jobseeker would go from $70 a day back to the old Newstart rate of about $40. Not only will this limit household spending, but it could also affect businesses in the local community.
As a Jobseeker recipient, you’ll also have to undergo an asset test and income test to see if you will still be eligible for the stimulus after September. While the mutual obligations requirements have been suspended because of COVID-19, it is slowly being reintroduced back into the system, meaning that job seekers must now undertake at least one appointment with their employment services provider whether it’s online or over the phone. You’ll also be required to attend job interviews and accept suitable work that is offered, and while at the time of writing, suspensions and financial penalties do not apply if you cannot meet these requirements, this may change soon. These requirements are in place to ensure that recipients are actively looking for employment, and are working towards being in a steady role whilst the stimulus is in place.
What To Do After The Cutback?
It can be distressing to have this end date looming over the horizon. The effects of COVID-19 have been significant.
A lot of Australians are actively applying for jobs and looking for suitable employment, both upon being stood down from their last role, to being unemployed because of the pandemic. And while this supplement has been a significant help to Australian households, its end date has given Australians fresh motivation to find roles that suit their skills in order to reduce the financial impact that the cutback on the stimulus will have on their finances come September.
This resilience and drive to work is more than remarkable, for sure! Australians are eager and ready to get back to work, and resume a sense of normalcy. If this sounds like you, it’s no surprise that you would have been actively looking for employment, and taking on interviews and trials to find the perfect role for you. Finding the right job can almost feel like a job, too, sifting through job advertisements and sprucing up your resumes and cover letters for a perfect application.
But if it’s taking a little bit of time to find suitable employment after the stimulus cutback, and you’re needing just an extra bit of help before you take on your new job, Ferratum can help close the gap! The reduced supplement might not be ideal, but applying for a short term loan with Ferratum is as easy as applying online.
Ferratum have competitive interest rates, a four minute application form, and short approval times, ensuring that you’ll have the cash you need with our same day loan option, to keep you going until you start your new job. Our easy process ensures that you’ll have the funds you need, with an easy payment plan that you’ll be able to adhere to as you get back into the workforce.
Saying goodbye to Jobseeker, and the coronavirus supplement, need not be a sad time. Entering into stable employment will always be an exciting period in any person’s life, and if you’re needing a little help to keep you, and your family, in the meantime, Ferratum can help with our easy online same day loans. You can stop stressing about your household spending, and focus on what really matters: getting back into the workforce, and building up your finances again.