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ABC News
ABC News
Health
By Amy Greenbank

'Pretty generous': Workers could double their income under JobKeeper plan

Sydney university student Eilidh Main typically works two shifts a week at a Redfern cafe.

Coronavirus shutdowns means the 21-year-old is getting less shifts, and her employer's revenue has also dropped 60 per cent, meaning they can apply for the Federal Government's JobKeeper wage-subsidy plan.

The $750-a-week payment was legislated by Parliament last night, and will roughly double her take-home pay.

"It seems pretty generous for people in my position, but I understand it's not this way for everyone," she said.

As a low-income earner, Ms Main welcomed the payment but said she was worried about others who could miss out.

The $130 billion JobKeeper package is considered to be one of the most important pieces of legislation in Australian history.

The payment, available from May 1, will be $750 a week before tax and does not take salary into account.

That means eligible casuals will receive the same amount as full-time workers.

"Those that work one day a week and usually get $200 could suddenly find themselves getting $750," said Peter Strong from the Council of Small Business.

"You could have high school kids earning more than the parents."

Analysis by the Bankwest Curtin Economics Centre showed part-time fitness instructors that typically earn about $280 a week would see their pay jump an extra $470.

Cooks working part-time in the fast-food industry would see their weekly average wage of $383 almost double.

And part-time sales assistants who normally take home $451 a week will receive $299 more.

"It's very generous but also puzzling," said Centre Director Alan Duncan.

Professor Duncan said data showed about 2.5 million Australians could potentially make more money than they did before coronavirus struck because they earn less than $750 a week and work in industries affected by the pandemic.

Sharon Rautenberg works in administration at a small business in Grafton in northern NSW.

She said she was blown away over the size of the wage subsidy.

"That would be roughly a hundred dollars a week extra for me."

According to a Treasury spokesperson, the plan was designed to reduce the administrative burden on businesses and "allow the Government to deliver payments to employers more quickly".

Businesses that can show a 30 per cent or more loss in revenue due to COVID-19 are eligible, and more than 700,000 have registered interest.

All payments are required to be passed on to their workers.

Professor Duncan said while it's a major investment, it could have potentially been better tailored.

"We have modelling that shows subsiding a worker's current wage 100 per cent rather than offering a flat rate could support more workers, including short-term casuals that are currently excluded."

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