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  • How JobKeeper payments affect income support payments

    The JobKeeper payment is treated as income for the purposes of social security payments.

    If you're receiving income support, you need to report the income you receive through the JobKeeper payment to Services AustraliaExternal Link. This may make you ineligible for the JobSeeker payment or other income support payments.

    We are working with Services Australia to share information to identify instances of the incorrect eligibility for JobKeeper or JobSeeker. If you don't report the income or cancel your JobSeeker payment, you may incur a debt you'll have to repay.

    Example 1 – Employee who has been stood down and applied for income support

    Lowanna worked at a retail store as a permanent full-time employee but has been stood down under the Fair Work Act without pay. Lowanna is single with no children. She has submitted a claim with Services Australia for JobSeeker payment. If granted, she will also get the Coronavirus supplement. From 25 September 2020, the maximum she may be eligible to receive is $815.70 (before tax) per fortnight from Services Australia.

    However, Lowanna's employer has decided to enrol for the JobKeeper payment and nominate Lowanna (with her agreement). Lowanna’s employer is entitled to the tier 1 payment rate as Lowanna satisfies the 80-hour threshold in her reference period. For fortnights from 28 September 2020 until 3 January 2021, her employer must pay her $1,200 (before tax) per fortnight. Lowanna's employer is required to advise her that she's been nominated as an eligible employee and the tier that applies.

    Lowanna’s income from JobKeeper payment is above the income threshold for the maximum JobSeeker payment. However, she may still be eligible for a partial JobSeeker payment from Services Australia.

    End of example

    You may be eligible for a Centrelink payment if you, or your employer, is not eligible for JobKeeper and you still need financial help. You can use Services Australia's Coronavirus (COVID-19) and how we may helpExternal Link guide to check what help is available.

    See also:

    Last modified: 16 Sep 2020QC 62138