JobKeeper extension

Key summary for you of the changes to JobKeeper & JobSeeker announced 21 July 2020.

NB:  There are no changes before the end of September, including the current eligibility criteria.

JobKeeper

Extension to 28 March 2021 with a Two–Tiered Payment System

From 28 September 2020 to 3 January 2021, JobKeeper Payment rates will be:

  1. $1,200 per fortnight for all eligible employees and business participants who, in the four weeks before 1 March 2020, were working 20 hours or more a week on average in February 2020; and
  2. $750 per fortnight for other eligible employees and business participants.

From 4 January 2021 to 28 March 2021, JobKeeper Payment rates will be:

  1. $1,000 per fortnight for all eligible employees and business participants who, in the four weeks before 1 March 2020, were working 20 hours or more a week on average in February 2020; and
  2. $650 per fortnight for other eligible employees and business participants.

Reapply and Prove Eligibility

To continue to be eligible for JobKeeper, the testing is slightly different this time around.

GST turnover needs to be the same as BAS turnover (based on Treasury Fact Sheet, noting this is different to previous ATO information on calculation of GST Turnover).

It’s expected that this will help the ATO perform either eligibility or integrity testing.

For 28 September to 3 January:  To be eligible in this period, you must have had an actual decline in BAS turnover of 30% or more for both:

  1. Quarter ending 30 June 2020 (compared to the quarter ended 30 June 2019) and
  2. Quarter ending 30 September 2020 (compared to the quarter ended 30 September 2019).

For 4 January to 28 March 2021:  To be eligible in this period, you must have had an actual decline in BAS turnover of 30% or more for both periods listed above AND:

  1. You must ALSO have an actual decline in turnover of 30% or more for Quarter ended 31 December 2020 (compared to quarter ended 31 December 2019)

The existing alternative tests may still be allowed by the ATO.

Other Key Items

  1. The JobKeeper payment will remain open to new employers and business participants provided they meet the existing eligibility requirements and the additional turnover tests during the extension period
  2. Employers will continue to be required to make payments to employees equal to, or greater than, the amount of the JobKeeper payment (before tax), based on the payment rate that applies to each employee (i.e. the wage condition)
  3. New businesses established since 1 March 2020 will not be eligible
  4. The rules do not change for employee eligibility (must have been employed at 1 March 2020, and if casual, for >12months)

 

For more information please visit Treasury Fact Sheet – JobKeeper Extension and Treasury Fact Sheet – Additional Income Support for Individuals.

Remember – nothing changes until after September, so there is time to digest and assess how this impacts you & your business.

 

 

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