JobSeeker & JobKeeper: What are they? | Nifty Loans Explains

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88% of our customers have their funds within 60 seconds of signing their contract.*

*Only available for NPP enabled bank accounts

Fast Personal Loans

  • Smart and quick application form, which can be completed in minutes
  • 70% of applicants receive an outcome instantly
  • For applications that do not receive instant outcome, most receive a final outcome within 60 minutes!*
*During normal business hours.

JobSeeker & JobKeeper: What are they?

Andy

Andrew Bell

Last updated: May 16, 2020

  • 3 min read

3 min read

As a part of a $1 Billion relief and recovery fund, the Australian Government has introduced two new payments aimed at assisting individuals or businesses who have been impacted by the Coronavirus (COVID-19) pandemic. These payments, being JobSeeker and JobKeeper, serve two completely different purposes when it comes to assisting the Australian public. 

Due to some confusion about these payments from our customers, we thought we would dispel some of the false information surrounding these two payments and help our fellow Aussies in finding the help they need.  If you’re an existing Nifty Personal Loans customer and require any sort of financial assistance during this time, please remember to get in contact with us as soon as possible. 

JobSeeker

As of March 20th, JobSeeker was introduced as the main payment for working-age Australians. The aim of this benefit is to provide financial aid to those Australians between 22 and 66 (Age Pension age) who are either looking for a job or have been put in a position where they are unable to work or study due to illness or injury. JobSeeker has also been introduced with the intention of consolidating a number of existing benefits, simplifying the payments for working-age Australians. The benefits that are set to be consolidated are as follows:

  • Newstart Allowance
  • Wife Pension
  • Sickness Allowance
  • Partner Allowance

How does JobSeeker work?

Each of these payments will eventually be phased out by Jan 1st 2022. If you are currently receiving one of these benefits, you won’t need to do anything in most cases, your payments will be transitioned automatically. 

If you have recently lost your job and are experiencing severe financial hardship, you may want to look into JobSeeker payments, though, there are some eligibility requirements you should be aware of. For instance, in order to be eligible; you must be an Australian resident (Citizen or Permanent), be between the ages of 22 and 66; and cannot be earning more than the test limits. For further information on income limits, Services Australia provides a quick breakdown here

If you are younger than 22 and are in need of assistance, you can look at applying for Youth Allowance. Eligibility requirements for this benefit are much the same as JobSeeker, though, there are specific rules that separate students and individuals looking for work. For further clarification, please visit Services Australia here.

For those who have been directly affected by COVID, such has experienced a loss in employment or other difficulties, the Australian Government has also added a temporary COVID supplement payment. This supplement is a fortnightly payment of $550 that is added on top of existing benefits and will continue for up to 6-months depending on eligibility. 

JobKeeper

Employees

If you are an employee of a company that has been significantly affected by COVID, you could be eligible for JobKeeper payments. With that being said, though, JobKeeper payments are fundamentally different from regular Centrelink payments. This is because instead of Centrelink paying individuals directly, employers need to apply for the JobKeeper subsidy which they will then use to help pay their employees. If you’re an employee who is going to receive JobKeeper payments, there are a few takeaways to keep in mind:

  • If you are working more than one job, you can only receive the benefit from one job.
  • Tax is withheld from payments at your marginal tax rate, so you may receive less than $1,500 in your bank account.
  • You will need to talk to your employer if you are interested in the JobKeeper payment.
  • If you run a business as well as work full-time at another business, you will not be able to claim the JobKeeper payment for both.

Employers

If you’re an employer looking to claim the JobKeeper subsidy, applications were announced to only be accepted up until the 31st of May 2020. There is also a list of eligibility requirements for both your business and which employees can receive the benefits. To be an eligible employer, you must meet the following requirements:

  • Your business or not-for-profit organisation operated in Australia as of 1st March 2020
  • You employed at least one employee as of 1st March 2020
  • Your eligible employees were employed for the fortnights that have been claimed (Meaning employees who have since been stood down may still be eligible)
  • Have experienced a 15%, 30% or 50% fall in turnover, depending on your business type and size

To be considered an eligible employee, they must meet the following requirements:

  • Were employed at 1st Match 2020
  • Are a full-time, part-time or fixed-term employee. 
  • Casual employees are ineligible if they have not been employed on a regular basis for at least 12 months
  • Are 18 years or older as of 1st March 2020 (or are a proven independent if younger)
  • Are an Australian Citizen or resident who is not studying full-time
  • Has agreed to be nominated and is not claiming the subsidy from another employer
  • Has not lost employment before, or entered employment after 1st March 2020

For further information and a step-by-step application guide for the JobKeeper Subsidy, we would recommend that you visit the ATO here.

 


Andy Andy

AUTHORITATIVE SOURCE

Andrew Bell

Since founding Nifty in 2016, Bell has continued to make waves within the local financial sector for his continued ambition and willingness to adopt emerging technologies.

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* Not applicable. Small loans do not charge an annual interest rate.

** WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Different loans may include other payable fees and charges. All fees and charges will always be displayed on your loan contract.

Loan Costs

Potted Plant

Small Loans

$300 - $2,000

Loan amounts:$300 - $2,000
Terms:6 - 9 months
Establishment fee:20%
Monthly Fee:4%
APR:N / A *
Comparison Rate:138.37%**
View Example

Small Loan Example

Loan amount:$1,000
Terms:6 Months,
(24 weekly repayments)
Establishment fee:$200
Total other fees:$240
Total payable:$1,440
Weekly installments:$60.00
View Loan Details
Growing Tree Medium Loans

Medium Loans

$2,001 - $4,600

Loan amounts:$2,001 - $4,600
Terms:9 - 24 months
Establishment fee:$400
Monthly Fee:$0
APR:47.8%
Comparison Rate:65.86%**
View Example

Medium Loan Example

Loan amount:$2,500
Terms:24 Months,
(104 weekly repayments)
Establishment fee:$400
Total other fees:$1,609.44 (reducing interest)
Total payable:$4,509.44
Weekly installments:$43.36
View Loan Details
Grown Tree Large Loans

Large Loans

$5,000

Loan amount:$5,000
Terms:9 - 24 months
Establishment fee:Variable
Monthly Fee:$0
APR:21.24%
Comparison Rate:48%**
View Example

Large Loan Example

Loan amounts:$5,000
Terms:18 months,
(78 weekly repayments)
Establishment fee and Total Interest:$1,897.54
Total payable:$6,897.54
Weekly installments:$88.43

* Not applicable. Small loans do not charge an annual interest rate.

** WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Different loans may include other payable fees and charges. All fees and charges will always be displayed on your loan contract.