Jobkeeper payment overestimated by $60 billion

The Federal Government's JobKeeper wage subsidy program is now expected to cost $70 billion instead of $130 billion.

Treasury today revised its figures for the program, with the number of employees forecast to be assisted now 3.5 million instead of six million.

The slashed cost is partially attributed to uncertainties in estimating the take-up of the program, Treasury said.

UPDATES: Pubs to reopen on June 1 in NSW; Australian death toll rises to 101

"This reporting error has come to light as the ATO and Treasury have been analysing the amounts being paid out under the scheme, reconciling these with the estimates provided by enrolled businesses of the likely number of eligible employees," Treasury said in a statement.

"It was not picked up by the ATO earlier as their primary focus in the first fortnight of JobKeeper payments was on ensuring that JobKeeper payments were paid promptly to those eligible for them, and not paid to those who were ineligible.

"These initial estimates from businesses of employees covered are not linked to payments, and so were not as carefully analysed."

More to come.