Aussie Workers Will Start Receiving JobKeeper Payments In May

Treasurer Josh Frydenberg says Australians who are eligible for fortnightly JobKeeper payments will start to see the money in May, as more than 700,000 workers are expected to lose their jobs before June.

Speaking on Tuesday, Frydenberg told reporters that the country's unemployment rate is expected to peak at 10 per cent, the highest in decades, in the June quarter.

He admitted the unemployment rise was "very concerning" and said as recently as February, unemployment had fallen to 5.1 per cent nationally.

"Today, we released treasury figures indicating their estimate that unemployment is expected to peak at around 10 per cent in the June quarter," he said.

"The unemployment rise is very concerning. But it's also a reflection of the economic challenges that we face."

The treasurer said the government's JobKeeper package will help six million workers and estimated that without it, the unemployment rate would have tripled.

"But for the JobKeeper package, unemployment would have peaked at 15 per cent - five percentage points higher," he claimed.

"The JobKeeper package is providing an economic lifeline to millions of Australians."

More than 800,000 Australian businesses have already registered for the wage subsidy scheme which passed Parliament last week.

Eligible businesses will receive a payment of $1,500 per fortnight per eligible employee to support the people they employ.

Where an employee’s total remuneration is less than $1,500 per fortnight (before tax) or has been stood down, the employer must provide the employee at least $1,500 per fortnight (before tax).

If an employee earns more than $1,500 per fortnight, employers can use the payment to subsidise the employee’s wage.

The government says the first JobKeeper payments will be received by employers from the first week of May.

The payment will be available until the end of September.

Worst Unemployment Rate Since 1994

The June quarter will be the first time the unemployment rate has hit double digits since April 1994.

More than 700,000 Australians are expected to lose their jobs before the middle of this year because of the coronavirus pandemic.

Frydenberg said it was still too soon to speculate on when the unemployment rate would fall back to February levels again, adding that the speed at which people could return to the workforce would depend on the health restrictions put in place to help prevent the spread of the virus.

"We cannot get ahead of the medical advice," he said, "to do so would be dangerous and unrealistic.

"Over time, once we get to the recovery phase and restrictions are eased, at that point you will see more people come back into the workforce."

"I believe that more jobs will be created on the other side of this crisis," he added.

"I think there will be the recovery phase, Australia will be well-positioned for that. But there are certainly some challenges ahead."