The JobKeeper wage subsidy program has been extended until March 2021, albeit at lower rates and the announcement will have terrific implications for the Australian property market, said Angus Raine, Executive Chairman, Raine & Horne.

“Forget interest rates, unemployment, a large part of property market activity is based on sentiment. The sentiment metre will be much healthier because of Sco Mo’s much-anticipated announcement today,” Angus said.

The announcement has also arrived at a perfect time for real estate. Angus explains, “The market was getting a little jittery about the so-called “financial cliff” that many predicted if JobKeeper was terminated on 30 September. Now 28 September 2020 will officially be a great day in the economic and social history of Australia.

“Now homeowners, buyers, investors and tenants will have more certainty, which is fabulous for real estate, which is a $6 trillion market and a massive source of employment for all Australians.”

The changes in summary  

The JobKeeper Payment is currently due to finish on 27 September 2020 but will now remain available for eligible employers until 28 March 2021 with two tiers to be introduced, based on hours employees worked in February:

The Prime Minister said the assistance would continue supporting hundreds of thousands of Australians who are without work and offer businesses and their workers a lifeline to not only get through this crisis but recover on the other side. “We will have Australian’s backs as we face the ongoing impacts of COVID-19,” he said.

COVID-19 supplement

The Government will extend the payment period of the temporary Coronavirus Supplement for those on income support from 25 September 2020 to 31 December 2020 to continue to provide elevated assistance while the economy is still in its early stages of recovery.

As the economy reopens, the Coronavirus Supplement will be extended at the rate of $250 per fortnight. Both existing and new income support recipients will continue to be paid the Coronavirus Supplement.

Treasurer Josh Frydenberg said the extension of JobSeeker and JobKeeper support recognised Australia’s economic recovery was still in its early stages and a number of businesses and individuals remained significantly affected by the global COVID-19 pandemic.

“The Government’s focus remains on reopening the economy where it is safe to do so, but the extension of these measures recognises that some parts of the economy will continue to be affected and need continued support,” the Treasurer said.