Jobkeeper Extension

The Australian Government has extended the JobKeeper Payment by a further six months to March 2021. The JobKeeper payment which was originally due to run until 27 September 2020, will continue to be available to eligible businesses (including the self-employed) and not-for-profit organisations until 28 March 2021. In addition, from 03 August 2020 the relevant date of employment will move from 01 March to 01 July 2020, increasing employee eligibility for the existing scheme and the extension.

Support will be targeted to businesses and not-for-profit organisations that continue to be significantly impacted by the Coronavirus. The payment rate will be reduced and a lower payment rate will be introduced for those who work fewer hours.

From 28 September 2020 the payment rate for eligible employees and business participants will be reduced from $1,500 to $1,200 per fortnight and then to $1,000 per fortnight from 04 January 2021. Lower payment rates will apply for employees and business participants that worked fewer than 20 hours per week in the relevant reference period.

Businesses and not-for-profits seeking to claim the JobKeeper payment will be required from 28 September 2020 to demonstrate that they have suffered a decline in turnover using actual GST turnover (rather than projected GST turnover) and will be required to reassess their eligibility with reference to their actual GST turnover in the September quarter 2020 to be eligible for the JobKeeper payment from 28 September 2020 to 03 January 2021.

JobKeeper will continue to remain open to new recipients, provided they meet the eligibility requirements and the turnover tests that apply during the relevant JobKeeper payment period.

JobKeeper Payment Rate

From 28 September 2020 to 03 January 2021, the JobKeeper payment rates will be:

• $1,200 per fortnight for all eligible employees who were working in the business or not-for-profit for 20 hours or more a week on average in the four weeks of pay periods before either 01 March 2020 or 01 July 2020, and for eligible business participants who were actively engaged in the business for 20 hours or more per week on average; and
• $750 per fortnight for other eligible employees and business participants.

From 04 January 2021 to 28 March 2021, the JobKeeper payment rates will be:

• $1,000 per fortnight for all eligible employees who were working in the business or not-for-profit for 20 hours or more a week on average in the four weeks of pay periods before either 01 March 2020 or 01 July 2020, and for business participants who were actively engaged in the business for 20 hours or more per week on average; and
• $650.00 per fortnight for other eligible employees and business participants.

Resources

More information on the eligibility rules for businesses and not-for-profits and their employees is at: www.ato.gov.au/General/JobKeeper-Payment/.

There are additional turnover tests around eligibility that your Advisor can assist you with so please contact our team today on 8291 2111.