The Future of JobKeeper

 

On 21 July 2020, the Government announced an extension of the JobKeeper program to 28 March 2021 but with tighter access and reduced rates. From 28 September 2020, employers seeking to claim JobKeeper payments will need to reassess their eligibility and prove an actual decline in turnover.

If your business currently receives JobKeeper, your arrangements will generally remain unchanged until 27 September 2020.

Eligibility of the JobKeeper 2.0

To receive JobKeeper payments from 28 September 2020, businesses will need to meet the basic eligibility tests and an extended decline in turnover test based on actual GST turnover. The

  • For the period of 28 September to 3 January 2021 – Actual GST turnover in the June and September 2020 quarters fell by at least 30% (15% for ACNC-registered charities, 50% for large businesses) compared to the same periods in 2019. The decline for both of the quarters needs to be met to continue receiving JobKeeper payments.
  • For the period of 4 January 2021 to 28 March 2021 – Actual GST turnover in the June, September and December 2020 quarters fell by at least 30% (15% for ACNC-registered charities, 50% for large businesses) compared to the same periods in 2019. The decline for all three of the quarters needs to be met to continue receiving JobKeeper payments.

The Commissioner of Taxation 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.

Eligible employees

Employee eligibility will remain broadly the same but the value of the payment will change from 28 September based on average weekly hours in February 2020. As a reminder, the eligibility requirements for employees can be found here.

The new JobKeeper rates that apply for future periods are as follows.

  • 28 September to 3 January 2021
    • $1,200 per fortnight per employee or business participant who worked > 20 hours per week
    • $750 per fortnight per employee or business participant working < 20 hours per week
  • 4 January 2021 to 28 March 2021
    • $1,000 per fortnight per employee or business participant who worked > 20 hours per week
    • $650 per fortnight per employee or business participant working < 20 hours per week

Will I continue to receive the JobKeeper until September?

If your business and your employees passed the original eligibility tests to access JobKeeper, and you have fulfilled your wage requirements, you can continue to claim JobKeeper up until the last JobKeeper fortnight that ends on 27 September 2020.

Click Here to view the full JobKeeper 2.0 Guide or contact our office on 02 9531 0922 to discuss how these changes will affect your businesses future eligibility.

Posted on the 22-07-2020