Error: Your upload path is not valid or does not exist: /home/content/p3pnexwpnas08_data01/12/2548012/html/wp-content/uploads Policy for women children Archives - Clarence Kitchen Design Studio

Category: Policy for women children

Policy for women children

JobKeeper allowances plummet by 40 per cent after tax…

JobKeeper recipients are still being taxed at normal rates on their $1,500-a-fortnight government Child Education Allowance Rules

A Sydney man, who earned a high income before being laid off, was left with just $900 per fortnight after being taxed 40 per cent of his JobKeeper allowance. 

This is even lower than the dole before tax, which is $1,100 every fortnight under the current JobSeeker allowance. 

‘We’re grateful for anything, but $450 per week doesn’t cover the mortgage and car loans, so there’s nothing left for food or any utility costs,’ the man told

He said it was ‘misleading and dishonest [for the government] to boast about giving $1,500 to families’ when he was only receiving $900.   

The JobKeeper payment is treated as normal income and is therefore, taxable.   

Those who earn less than the tax-free threshold of $18,200 will not be taxed. 

However, those who are earn more than the tax-free threshold are still taxed depending on their respective tax bracket. 

The tax-free threshold is the equivalent of earning $700 a fortnight, meaning that all JobKeeper and JobSeeker recipients are likely to be taxed. 

If a person was on the JobKeeper allowance for a full year, this would mean they would earn $39,000 before tax. 

But after their corresponding $4,222 of tax and the $780 medicare levy, they would receive $33,998. 

This means the JobKeeper allowance is actually a minimum of $1,307.61 per fortnight.

People stand in a queue outside a Centrelink office in Sydney after the MyGov website crashed in March. If a person was on the JobKeeper allowance for a full year, they would actually receive $1,307.61 per fortnight after tax and the medicare levy

People stand in a queue outside a Centrelink office in Sydney after the MyGov website crashed in March. If a person was on the JobKeeper allowance for a full year, they would actually receive $1,307.61 per fortnight after tax and the medicare levy

Meanwhile, if a person received the JobSeeker allowance for a full year in 2020, they would end up earning $28,600 as the allowance was only boosted from $550 per fortnight to $1,100 per fortnight on April 27. 

After being taxed $1,976 and paying a $572 medicare levy, a JobSeeker recipient would end up with $24,076 this year. 

As a result, the current JobSeeker allowance is actually like earning $1,002 per fortnight.   

Employers will receive JobKeeper payments to pay their employees from May 6.

Advertisement