JobKeeper Extension

The following is an announcement from The Treasury regarding Scott Morrison’s announcement today confirming that the JobKeeper Payment scheme will be extened, albeit with new qualification rules and reduced payment rates after the 28th September 2020.

We are assuming that more details on the specifics of applying for and confirming eligibility for the payments beyond September will be released in the next few weeks, but at least there is some certainty that those businesses severley impacted by COVID-19 will continue to receive some support.

If you have any questions in regards to JobKeeper or any of the other stimulus packages available, or in regards to your own situation, pelase call our office on 02 6372 6444, we are here to help.

JobKeeper extension – The Treasury announcement

On 21 July, the Government announced it is extending the JobKeeper Payment until 28 March 2021 and is targeting support to those organisations which continue to be significantly impacted by the Coronavirus. From 28 September 2020, eligibility for the JobKeeper Payment will be based on actual turnover in the relevant periods, the payment will be stepped down and paid at two rates.

Information about the operation of the existing JobKeeper Payment until 27 September 2020 is available on the ATO website.

Business eligibility

From 28 September 2020, organisations 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. Organisations 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.

Organisations will need to further reassess their eligibility in January 2021 for the period from 4 January to 28 March 2021. Organisations will need to demonstrate that they 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 and for business participants who were actively engaged in the business for more than 20 hours per week, and $750 per fortnight for employees who were working in the business for less than 20 hours a week on average and business participants who 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 $1,000 per fortnight for all eligible employees who in the four weeks before 1 March 2020, were working for 20 hours or more a week on average and for business participants who were actively engaged in the business for more than 20 hours per week, and $650 per fortnight for employees who were working for less than 20 hours a week on average and business participants who were actively engaged in the business for less than 20 hours per week in the same period.

Further Information is available in the JobKeeper Payment extension fact sheet.

Fact sheet

• COVID-19
• Tax & ATO Updates