Extension of the JobKeeper Payment Scheme: What You Need to Know
On Tuesday the 21st of July the Australian Government announced a proposed extension of the JobKeeper Payment Scheme from 28th September 2020 until 28th March 2021, with revised eligibility requirements and reduced payments for eligible employees.
The scheme outlined by Prime Minister Scott Morrison is named “JobKeeper 2.0” and aims to support businesses that have been significantly impacted by COVID-19.
Under JobKeeper 2.0, full-time, part-time and casual employees will no longer receive the same flat rate payment. Rather, employees will be separated into one of two tiers of payments as follows:
- Tier 1: The employee worked 20 or more hours per week on average in the month of February 2020.
- Tier 2: The employee worked less than 20 hours per week on average in the month of February 2020.
Payment rates will also reduce over 2 separate periods being:
- 28 September 2020 to 3 January 2021; AND
- 4 January 2021 to 28 March 2021.
In the below graphic we have outlined the changes according to the 2 tiers of payments for eligible employees.
The ATO will apply an alternative eligibility test if employee’s hours were not usual during the 4 weeks leading up to 1 March 2020.
Ongoing Eligibility for JobKeeper 2.0
The other key feature of JobKeeper 2.0 is the eligibility test. The 30% turnover test applying to most businesses remains, however businesses will need to satisfy the test multiple times from 28 September 2020 onwards to continue receiving JobKeeper payments through to 28 March 2021.
For full details of the Extension of the JobKeeper Payment and associated eligibility requirements, please refer to the Treasury factsheet by clicking here.
Please note, from now until 27 September 2020 there is NO CHANGE to current JobKeeper arrangements.
It is important to note however that August is a three-fortnight month for JobKeeper so you will need to cover $4,500 for the month of August rather than $3,000.
We have been assisting many businesses with their JobKeeper eligibility and enrolment enquiries and application processes. Our team at Allan Hall Business Advisors can assist you to navigate this process smoothly and efficiently. Please do not hesitate to contact us should you require assistance or have any further questions.