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JobKeeper – Extension Update

Posted by   |   August 28th, 2020   |   Categories: Topics

JobKeeper Extension Update

The Federal Government has announced further changes to its JobKeeper program to make qualifying easier for businesses.

High level summary of JobKeeper 2.1

Businesses now only need demonstrate the downturn for the single relevant quarter, rather than multiple quarters.

Reference date for employee eligibility has now been amended to 1 July 2020, instead of 1 March.

1.0 Current JobKeeper

The current JobKeeper program will remain unchanged to 28 September 2020.

Employer eligibility: basic test

30% decline in projected GST turnover; or
50% decline for businesses with aggregated turnover of more than $1 billion; or
15% decline if a registered charity.

Worker eligibility:

Doesn’t change

Payment rate:

$1500 per fortnight for all eligible employees.

You can still apply

JobKeeper remains open to new recipients provided they meet the existing eligibility requirements and the additional turnover tests during the extension period.

2.1 New JobKeeper

JobKeeper from 28 September 2020 to 28 March 2021.

Employer eligibility: basic test

No changes to decline percentages (30%, or 50% if turnover $1 billion+, 15% if a registered charity).
To be eligible from 28 Sept to 4 Jan 2021, businesses need to measure the decline in actual GST turnover for the Sept 2020 quarter against the Sept 2019 quarter.

To be eligible from 4 Jan to 28 March 2021, businesses need to measure the decline in actual GST turnover for the Dec 2020 quarter against the Dec 2019 quarter.

Alternate tests are available for businesses with extenuating circumstances.

These new rules now require businesses to demonstrate that they have suffered a significant decline in turnover using actual GST turnover rather than projected GST turnover.

Worker eligibility

In addition to existing eligibility rules, the reference date for assessing eligibility is now 1 July 2020. This is a change to the previous date of 1 March 2020, and has been made to ensure that those employees hired when conditions began to bounce back, will now be eligible for the payment.

Payment rate

From 28 September the payment rate will be reduced in stages with two payment rates introduced.

o meet the 20+ work hours test and qualify for the higher payment rate, eligible employees need to have worked in the business or NFP for 20 hours per week on average in February or June 2020 (the 4 weeks before 1 March/July 2020). The period with the higher number of hours is to be used for those eligible at 1 March.

For those eligible employees who worked less than 20 hours per week on average during that period, the lower rate will apply.

20+ Work Hours Work Hours < 20
28 Sept 2020 – 3 Jan 2021 $1200 $750
4 Jan – 28 march 2020 $1000 $650

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