On 21 July the Federal Government announced it is extending the JobKeeper Payment until 28 March 2021. Current recipients of JobKeeper may not be eligible after 27 September.
From 28 September 2020, eligibility for the JobKeeper Payment will be based on actual turnover in the relevant periods. Also, the payment will be reduced and paid at two rates. The lower rate will be introduced for those who work fewer hours.
It is important to be reminded that if a business does not meet the additional turnover tests for the extension period, this does not affect their eligibility prior to 28 September 2020.
The JobKeeper will continue to be open to new recipients, provided they meet the existing eligibility requirements and the additional turnover tests during the extension period.
From 28 September to 3 January 2021 the rates will be:
$1200 per fortnight for all eligible employees who, before 1 March 2020, were working in the business for 20 hours or more per 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.
From 4 January 2021 to 28 March 2021, the JobKeeper Payment rates will be:
$1000 per fortnight and $650 per fortnight in line with the eligibility rules stated above for the previous quarter.
The JobKeeper Payment will continue to be made by the ATO to employers in arrears.
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.
To be eligible for the first JobKeeper extension (28 September to 3 January 2021) a business will need to demonstrate a decline in turnover in the 2020 June quarter and the 2020 September quarter relative to the corresponding quarters in the previous year.
The same will apply for the second JobKeeper Payment for the period 4 January to 28 March 2021. GST turnover will need to have fallen in each of the three quarters, June, September and December 2020 compared with the June, September and December 2019 quarters.
The Commissioner will have discretion to set out alternative tests that would establish eligibility in specific circumstances where it is not appropriate to compare actual turnover in a quarter in 2020 with actual turnover in a quarter in 2019, in line with the Commissioner’s existing discretion.
The requirement to show a 30% decline in GST turnover remains the same as existing rules.
More detail regarding the JobKeeper extension will no doubt emerge.
Please don’t hesitate to contact us if you wish to discuss this latest announcement on JobKeeper.