On 21 July 2020, the Government announced that it is extending the JobKeeper Payment until 28 March 2021.
This is a direct result of the newest outbreak of the COVID-19 virus in the southern states and will be targeting support to those businesses which continue to be significantly impacted by the Coronavirus.
Eligibility for the extended JobKeeper Payment will be based on a business’s actual turnover in the relevant period and the payment amount will be stepped down and paid at two rates.
From 28 September 2020, eligible employers seeking to claim JobKeeper payments will be required to reassess their eligibility for the JobKeeper extension with reference to their actual turnover in the June and September quarters 2020. Businesses will need to demonstrate that they have met the relevant continuing decline in turnover test in both of those quarters to be eligible for JobKeeper from 28 September 2020 to 3 January 2021.
Businesses will need to further reassess their eligibility in January 2021 for the period from 4 January to 28 March 2021. You will be required to demonstrate that you have met the relevant continuing decline in turnover test in each of the previous three quarters to remain eligible for the March 2021 quarter.
JobKeeper Payment Rates
The JobKeeper payment rate is to be reduced and paid at two rates:
From 28 September 2020 to 3 January 2021, the payment rate will be:
$1,200 per fortnight for all eligible employees who, in the four weeks before 1 March 2020, were working in the business for 20 hours or more a week on average;
$1,200 per fortnight for eligible business participants who, in the four weeks before 1 March 2020, were actively engaged in the business for more than 20 hours per week;
$750 per fortnight for employees who, in the four weeks before 1 March 2020, were working in the business for less than 20 hours a week on average; and
$750 per fortnight for eligible business participants who, in the four weeks before 1 March 2020, were actively engaged in the business less than 20 hours per week in the same period.
From 4 January 2021 to 28 March 2021, the payment rate will be further reduce from $1,200 per fortnight to $1,000 per fortnight, and from $750 per fortnight to $650 per fortnight for each of the relevant categories above.
These changes represent both a recognition that some businesses are still being (or will continue to be) impacted, whilst some have already recovered, or will recover soon.
We are awaiting further announcements around this policy and the introduction of legislation. We will continue to provide updates as new information becomes available.
If you would like to discuss your particular situation or circumstances in detail, please contact us.
As always, we are here to help, if you have any questions in relation to the JobKeeper process please contact our office on +617 5443 1432.