Highlights
- About 1.6 million Australians will be hit by cuts to the JobKeeper wage subsidy today.
- Many employees are struggling to get by while living on a tight budget
- The Government expects unemployment will peak at 7.5 per cent in the first three months of 2021
From January 4, 2021, people on the top rate of JobKeeper will see their payments cut by $200 a fortnight, while workers on the lower part-time rate will face a cut of $100.
Hotel staff, Nino Delos Santos who has been relying on the Jobkeeper scheme since March, says these changes will have a great impact for low income earners who are struggling to make ends meet.
"We already cut our spending and held off making large purchases but we still have to live on a tighter budget".
The $600 weekly payment he receives have helped to pay their core bills and mortgage repayments. However, Nino cannot pin his hopes to the scheme so he has to look for other jobs to provide for other financial commitments.
"Our household income has been largely reduced and the Jobkeeper payment has helped me remain employed. It's a big help, but it's not enough".
Yet, the Government is sticking to its plan to scrap the subsidy altogether at the end of March despite the COVID outbreak in New South Wales.
The hospitality industry in NSW is just starting to bounce back when the new coronavirus clusters in the Northern Beaches halted businesses to fully reopen. More venues are named COVID-19 case locations and restrictions are reimposed.
Source: Geraldine Roxas
Australian states and territories have also reintroduced travel restrictions, with many states declaring Greater Sydney a COVID-19 hotspot and requiring return travellers to quarantine for 14 days. With the new restrictions in place, occupancy rates in hotels where Nino works are expected to drop.
"Because the international borders are closed, we are relying on the domestic travellers to help us recover. But the crisis is unprecedented and moving quickly, yet still deeply uncertain."
Looking ahead, Nino hopes that this situation will change when the COVID-19 vaccine is rolled out in the country.
The Government expects unemployment will peak at 7.5 per cent in the first three months of 2021. Treasurer Josh Frydenberg said the Government's plan for economic recovery includes a range of stimulus measures, including personal income tax cuts and the JobMaker subsidy for businesses hiring young workers.
Source: Nino De los Santos
"With our economic recovery well underway, Australians have cause for optimism and hope as we emerge from the COVID-19 recession," he said.
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