Sky News has revealed the Morrison government is planning to scrap the JobKeeper payment when it expires in March.

The federal budget, which is set to be released in October, will set up a cliff for businesses currently on the welfare payment, forcing them to stand on their own two feet.

Labor is demanding the prime minister provide a jobs plan to replace the wage subsidy, arguing ending JobKeeper in March will drive up the official unemployment rate.

However, the prime minister is presiding over the largest deficit since the second world war and is likely continue opting for cost-efficient measures to support and create jobs such as reopening the borders.

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