Extension of the JobKeeper Payment
- The Government is extending the JobKeeper Payment by a further six months to March 2021.
-
The 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.
The JobKeeper Payment is a Commonwealth Government scheme to support businesses significantly affected by coronavirus to help keep more Australians in jobs.
The JobKeeper Payment, was originally due to run until 27 September 2020, will now continue to be available to eligible businesses (including the self-employed) and not-for-profit organisations until 28 March 2021.
In addition, from 3 August 2020 the relevant date of employment will move from 1 March to 1 July 2020, increasing employee eligibility for the existing JobKeeper scheme and the extension.
Reduction in JobKeeper Payment Rate
The payment rate of $1,500 per fortnight for eligible employees and business participants will be reduced to $1,200 per fortnight from 28 September 2020, and further to $1,000 per fortnight from 4 January 2021.
From 28 September 2020, lower payment rates will also apply for employees and business participants that worked fewer than 20 hours per week.
The JobKeeper Payment will continue to be made by the Australian Tax Office (ATO) 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.
JobKeeper Payment Rates (from 28 September)
Businesses and not-for-profit organisations will be required to nominate which payment rate they are claiming for each of their eligible employees (or business participants).
From 28 September 2020 to 3 January 2021;
- $1,200 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 all 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;
- $1,000 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 all 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
- $650 per fortnight for other eligible employees and business participants.
Requirement to reassess for JobKeeper Payment Eligibility
From 28 September 2020, businesses and not-for-profit organisations will be required to reassess their eligibility with reference to their actual GST turnover (rather than projected GST turnover) in the June 2020 and September 2020 quarters.
They will need to demonstrate that they have met the relevant decline in turnover test in the September 2020 quarter to be eligible for the JobKeeper payment from 28 September to 3 January 2021.
From 4 January 2021, business and not-for-profit organisations will need to further reassess their turnover to be eligible for the JobKeeper Payment. To remain eligible for the JobKeeper Payment from 4 January 2021 to 28 March 2021, they will need to demonstrate that they have met the relevant decline in turnover test (with reference to actual GST turnover) in the December 2020 quarter.
The JobKeeper Payment 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.
More information on the eligibility rules for businesses and not-for-profits and their employees can be found at: https://www.ato.gov.au/General/JobKeeper-Payment/
Decline in Turnover test
Under the JobKeeper Payment extension, to be eligible businesses and not-for-profit organisations will still 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 (excluding schools and universities).
Further information on the how the JobKeeper Payment works is available at: https://www.ato.gov.au/general/JobKeeper-Payment/
Last Updated: Friday 7 August 2020
Source: https://treasury.gov.au/sites/default/files/2020-08/Fact_sheet-JobKeeper_Payment_extension.pdf
