JobKeeper and JobSeeker will be extended past their September expiry date but the rate of both payments will be lower than their current amounts as the government seeks to avoid a fiscal cliff in September while also trying to limit the rapidly exploding level of public debt.

AMP Capital Chief Economist says it’s important to create a smooth transition as the stimulus packages gradually wind down.

“In the big picture sense it’s really about fine-tuning JobKeeper and JobSeeker, particularly redirecting JobKeeper from those who no longer need it towards those who do need it, and by doing that, freeing up money to enable it to be extended,” Dr Oliver tells Brooke Corte.

“If there is some extension and tapering of JobKeeper, retention of some of the increase in JobSeeker, along with ongoing support for industry and hopefully at some point in October the bringing forward of tax cuts, combined with more incentives for businesses to invest, then all of those things should help.

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