The Hunter Business Chamber has cautiously welcomed the extension of the federal government's JobSeeker and JobKeeper programs, but says the reduction in payments will hit some businesses hard.
Prime Minister Scott Morrison announced on Tuesday the JobKeeper payment would extend until March 2021, but would drop from $1500 to $1200 a fortnight from September 27 and to $750 for part-time workers. The rates will drop again in January, to $1000 for full-timers and $650 for those working less than 20 hours a week.
The JobSeeker coronavirus supplement will also continue for three months from September, but will drop from $550 to $250 a fortnight. JobSeeker recipients will be allowed to earn up to $300 a fortnight before suffering a reduction in their payment.
Hunter Business Chamber CEO Bob Hawes said the announcements were "within the realms" of his expectations, but said they were "a lifeline, not a rescue package".
He said he was hopeful the JobKeeper extension would allow businesses to remain afloat and keep staff in jobs. But said the situation in Victoria showed there was no quick fix to the situation.
"Our surveys still show there is a lot of negative sentiment and a high level of concern," he said. "Whilst many businesses are still operating, it's hard to be completely optimistic. For some of them, it's a week to week proposition. COVID-19 is so unpredictable."
In terms of the JobSeeker decision, Mr Hawes said it was great that workers will be able to earn $300 a fortnight and keep a hold of their payment - considering there was a large amount of casual and part-time workers in the Hunter.
"It will allow an opportunity when they do have their foot in the door, rather than their job actually costing them money," he said. "The challenge now is making sure the jobs are available. There is no silver bullet answer for that."
Mr Hawes said the chamber would be keeping an eye on how the situation in the Hunter progresses from here and would be passing on its feedback to the government.
The JobKeeper payment extension has also been welcomed by other industry and welfare organisations.
Lifeline Australia Chairman, John Brogden, said the JobKeeper payments had "saved lives during the COVID-19 pandemic" and thechanges will provide stability for many Australians.
The Australian Tourism Export Council and Master Builders Australia have also praised the decision to extend the payment.
However, the Transport Workers Union has slammed the announcement, with National Secretary Michael Kaine saying aviation workers would struggle on reduced payments.
"We welcome the Prime Minister's announcement to extend JobKeeper and are glad that he has listened to workers on this," Mr Kaine said. "But this announcement confirms that the Federal Government is happy for aviation to collapse and with it thousands of jobs."
