Treasurer Josh Frydenberg announced on Tuesday that the JobKeeper wage subsidies of $1500 per fortnight will be replaced with a $1200 payment after September or $750 for those who work less than 20 hours per fortnight.

After January third next year the payments will be reduced again to $1000 per fortnight for full-time roles and $650 for less than 20 hours, with wage subsidies ending after March 28.

JobSeeker unemployment payments from Centrelink will be reduced from $1100 to $815 a fortnight after September.

This will cut the coronavirus supplement from 100 per cent to 50 per cent and payments will return to pre-pandemic levels in January.

Business NSW Murray-Riverina regional manager Andrew Cottrill said it was "very clear that JobKeeper has been an absolute lifeline for businesses in the region".

"Many businesses would not be around today if it wasn't for that scheme...extending JobKeeper to March next year will be a great relief to businesses.

"They can now see a way to plan their future, including bringing employees back on the books and bringing their business back up to speed with the certainty that the government will support them."

St Vincent de Paul Wagga Central Council president Peter Burgess said "there were plusses" in the JobSeeker announcement but there was still a looming point where the prior Newstart rate would return.

"We would like to see JobSeeker maintained at that level as you just can't live on $40 per day," he said.

"The society has for two years campaigned to have Newstart increased.

"It's like living with cancer, there's no security in it. There's a bit of relief until the end of the year but what's going to happen after that?"

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More than 1800 Wagga businesses, sole traders and charities signed up to JobKeeper in April.

Riverina MP Michael McCormack said businesses "have been telling me how crucial JobKeeper has been for them to retain staff when they are doing it tough".

"More than 6000 businesses in the Riverina and Central West have been receiving JobKeeper support since the payment was introduced, so I am pleased to see it continue to support those businesses and people who need it most." he said.

Mr McCormack said people on JobSeeker and Youth Allowance could now earn up to $300 a fortnight without losing payments to encourage them to take up jobs as businesses reopen.