Businesses and employees reliant on the government subsidies had a drop in payments of up to $200 a fortnight from Monday, January 4.

Government payments for employees working less than 20 hours per week will be reduced from $750 to $650 per fortnight, while payments for employees working 20 hours per week or more will be reduced from $1200 per fortnight to $1000 fortnight under the changes.

Concerns are that businesses still reliant on Jobkeeper payments will have to reduce employees working hours following the reduction in the subsidies.

Industries including tourism, hospitality and retail are still operating below normal levels, however regional economies appear to have bounced back strongly.

For many businesses across the Central West and Western NSW, the main concern is how the program has been conducted rather than the current reductions in payments.

Village Bakehouse Retail Operations Manager, Taylor Stevenson, said that while both the company's Orange and Dubbo stores had come through the past nine months relatively well, more could be done.

"We have been lucky to still have some tourism across the region but also the strong support of locals, and that helped us keep all our staff employed " he said.

"While lowering and eventually getting rid of JobKeeper payments isn't great, I can understand why the government has gone down this path, especially with the way the COVID numbers were previously decreasing.

"I think the government needs to look at a different approach that takes into account the industry that businesses are in and what restrictions they are facing.

"Those hardest hit should get the support needed and try to balance that with businesses that don't need as much help."

While JobKeeper is set to end on March 28, Treasurer Josh Frydenberg said there were plenty of other financial incentives in place to help people.

"The Government has always maintained that JobKeeper was a temporary program designed to taper off as economic confidence and momentum builds," he said.

"In the Budget we saw a whole series of measures which are now starting to take effect.

"These important new measures continue to build on the Morrison Government's Economic Recovery Plan by creating jobs, rebuilding our economy and securing Australia's future."

The cuts in JobKeeper subsidies follows a decrease in additional JobSeeker payments, which were cut from $250 to $150 per fortnight, with JobSeeker also due to finish at the end of March.