The payment was established at the start of the pandemic to encourage affected business to keep staff employed, but it enters its final phase today ahead of its scheduled conclusion at the end of March.

From January 4, eligible businesses receive $500 per week for each staff member working at least 20 hours per week, down from $600. Other employees attract a payment of $325 per week, down from $375.

The payments must be passed by employers onto staff.

However, South Australian hospitality worker Jaymee Langrehr observed earlier in the year at her restaurant that when the payment was cut from $750 to $600 per week, so too did workers' shifts.

"Suddenly, after doing 25 to 30 hours I was down to 10 to 15," she said.

"If things got busy and we had to stay back to clean, we would get in trouble because we stayed past what JobKeeper paid us for and they had to pay us out of pocket."

Treasurer Josh Frydenberg said the Government's plan for economic recovery includes a range of stimulus measures, including personal income tax cuts and the JobMaker subsidy for businesses hiring young workers.

"With our economic recovery well underway, Australians have cause for optimism and hope as we emerge from the COVID-19 recession," he said.

Catch up on the main COVID-19 news from January 3 with our coronavirus blog.

Countdown to April

Ms Langrehr predicts if lockdowns continue after JobKeeper ends — even if they are only intermittent — many will struggle and "things are going to get really messy" in hospitality.

"If you're living paycheque to paycheque, week to week, and you don't have the backup savings, as soon as you don't have work for a week things get really difficult," she said.

Last week, Government Services Minister Stuart Robert said announcements would be made in the New Year about what would happen to the coronavirus payments.

He said the Government's response to the pandemic had evolved over 2020.

But it has not yet openly entertained extending JobKeeper, even though the cost of the scheme is set to come in some $10 billion less than what was estimated.

When Mr Frydenberg was asked whether an extension beyond March was being considered, he said:

"The Morrison Government has always maintained that JobKeeper is a temporary program designed to taper off as economic confidence and momentum builds."

"We're seeing that through the 734,000 jobs created over the last six months, with fewer businesses and their employees in need of JobKeeper and other temporary economic support."

The Government expects unemployment will peak at 7.5 per cent in the first three months of 2021. It had earlier expected it to reach 8%.

Calls for more support

The Labor Party has been critical of the Government phasing out JobKeeper and the coronavirus supplement to JobSeeker despite ongoing lockdowns.

Greens leader Adam Bandt has also been opposed to the 2021 reductions in JobKeeper and JobSeeker rates.

"The pandemic isn't over, and people must be supported while they're staying at home and following the health advice," he said.

"While health officials are urging people in Sydney and Melbourne to minimise travel, the Federal Government is urging them to hit the streets and find work."

Innes Willox, chief executive of business association Ai Group, said JobKeeper had to come to an end at some stage, but there was a strong case for targeted support to some businesses.

"We simply can't afford to keep JobKeeper going in its current form indefinitely but we will need to find ways to help significant parts of the economy through the next phase of difficulty, perhaps with more targeted assistance," he said.

The Government estimated the pay of 1.6 million Australians was being subsidised by JobKeeper in December, down from 3.6 million earlier in 2020.