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JobKeeper Update

5 years ago Posted on 21/7/2020

The Prime Minister and Treasurer have today announced additional measures to the Government’s Jobkeeper and Jobseeker programs.

 

JobKeeper

The Government will extend the Jobkeeper payment to eligible businesses for a further six months to 28 March 2021. There will be two periods of extension (first period of extension – 28 Sep 2020 to 3 Jan 2021) and second period of extension (4 Jan 2021 to 28 March 2021). Support will be targeted to businesses and not-for-profits 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. Other eligibility rules remain unchanged.

 

Jobkeeper Payment Rate

In the first period of extension – from 28 September 2020 to 3 January 2021, the Jobkeeper Payment rates will reduce as follows:

  • $1200 per fortnight for all eligible employees who, in the 4 weeks of pay periods before 1 March 2020, were working in the business or not-for-profit for 20 hours or more a week on average, and for eligible business participants who were actively engaged in the business for 20 hours or more per week on average in the month of February 2020; and
  • $750 per fortnight for other eligible employees and business participants

In the second period of extension – from 4 January 2021 to 28 March 2021, the Jobkeeper Payment rates will reduce as follows:

  • $1000 per fortnight for all eligible employees who, in the 4 weeks of pay periods before 1 March 2020, were working in the business or not-for-profit for 20 hours or more a week on average and for business participants who were actively engaged in the business for 20 hours or more per week on average in the month of February 2020; and
  • $650 per fortnight for other eligible employees and business participants

 

Business Eligibility

To continue to be eligible for the Jobkeeper Payments under the extension, businesses will need to demonstrate that they have experienced a decline in turnover of:

  • 50% for those with an aggregated turnover of more than $1 billion
  • 30% for those with an aggregated turnover of $1 billion or less; or
  • 15% for Australian charities and not for profit Commission-registered charities.

To be eligible for the Jobkeeper Payment after 27 September 2020, businesses will need to meet an additional decline in turnover test for each of the two periods of the extension.

  • To be eligible for the first JobKeeper Payment extension period (28 September 2020 to 3 January 2021), businesses will need to demonstrate that their actual GST turnover has fallen in both the June quarter (April, May and June) and the September quarter 2020 (July, August, September) relative to comparable periods (e.g. corresponding quarters in 2019).
  • To be eligible for the second JobKeeper Payment extension period (4 January 2021 to 28 March 2021), businesses will need to demonstrate that their actual GST turnover has fallen in both the June, September and December 2020 quarters relative to comparable periods (e.g. corresponding quarters in 2019).

 

Employee Eligibility

The eligibility rules for employees will remain unchanged.
The following link to The Treasury website in relation to the JobKeeper Extension is a valuable resource:
https://treasury.gov.au/coronavirus/jobkeeper/extension 

The Jobkeeper Extension Fact Sheet can be found here –
https://treasury.gov.au/sites/default/files/2020-07/Fact_sheet-JobKeeper_Payment_extension.pdf

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