Australia's hospitality sector has had its prayers partially answered by the federal government, which has announced an extension of its Jobkeeper subsidy until March 2021, albeit with cuts.

Under the updated policy revealed by Prime Minister Scott Morrison on Tuesday, the program will end on March 28, with the flat rate to be reduced from $1500 per fortnight to $1200 after September.

There will also be a lower payment of $750 a fortnight for those working less than 20 hours a week.

At a glance: 

• The federal government has announced an extension of its Jobkeeper subsidy until March 2021.
• The revised policy has been welcomed by the Accommodation Association of Australia and Tourism Accommodation Australia, both of which lobbied strongly for the update.
• The program is now scheduled to end on March 28, with the flat rate to be reduced from $1500 per fortnight to $1200 after September.

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Accommodation Association of Australia CEO Dean Long. Source: Accommodation Association of Australia

Accommodation Association of Australia CEO Dean Long, who oversaw the publication of an open letter to ministers in The Age requesting an extension of the subsidy on Monday, told WILLIAMS MEDIA the revised program represented an acknowledgement of the hardships the hospitality sector has faced as a result of COVID-19.

"We have been able to demonstrate to the government the impact Jobkeeper has had in maintaining employment for 30,000 people, while also clearly articulating we have already made the adjustments to our workforce as a result of COVID-19," he said.

"About 75,000 people have already left the industry as a result of the restructuring that has taken place, so it was about making it clear that we needed our bridge to be put through to March.

"This is a really good result for us."

#JobKeeper will be extended by six months to the end of March next year and the temporary supplement for those on income support will also be extended until the end of the year, we’ve just announced #auspol #breaking pic.twitter.com/QfA4lLte0Y

— Scott Morrison (@ScottMorrisonMP) July 21, 2020

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TAA CEO Michael Johnson. Source: Tourism Accommodation Australia

Tourism Accommodation Australia CEO Michael Johnson said Jobkeeper 2.0 would go a long way to saving businesses and keeping staff in jobs.

“With international travel uncertain for at least 12 months domestic tourism will be our only way out," he said.

"But until travel between all states and territories is possible, continuing Jobkeeper is the only way to keep the sector viable."

He added the Association had concerns JobKeeper would not be effective for businesses which have suffered long-term shutdowns like those in Victoria. 

“Given the length of forced shutdowns and our highly-casualised workforce, there is a concern eligible staff will have moved on when these hotels are ready to re-open,” he said. 

“JobKeeper is only payable for employees who were with the employer on 1 March 2020, so this would decrease the assistance to businesses in places like Victoria which have recently been shut down for a second time.” 

“We will be working closely to refine existing economic responses to Covid-19 and promoting additional ideas to protect jobs and rebuild our industry.” 

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