JobKeeper payments will be continued for a further six months however, rates and eligibility will be tightened.
JobKeeper is currently providing businesses with a $1500 payment per fortnight for each eligible worker and from October it will be reformed to a two-tier payment system.
The first tier payment will reduce to $1200 per fortnight and then reduce again to $1000 next year.
The second tier JobKeeper payment for people working fewer than 20 hours a week will be $750 per fortnight in October and then reduce again to $650 next year.
The JobSeeker coronavirus supplement will fall from $550 to $250 a fortnight, meaning people on the program will receive a maximum of $800 a fortnight from October.
People receiving JobSeeker payments will be allowed to earn $300 a fortnight without the income affecting their payments.
Mutual obligations for people receiving JobSeeker payments will tighten and penalties will be reintroduced if any jobs offered through the program are refused.
Businesses who are currently receiving JobKeeper will have to meet the 30% loss in their turnover test again in October and January to continue receiving the wage subsidy.