The Government have announced that they are extending the JobKeeper payments with two extensions beginning on 28 September 2020 and 4 January 2021.
To be eligible for JobKeeper 2.0, employers will have to meet existing eligibility requirements as well as further decline in turnover tests for each of the two extension periods.
The eligibility rules for employees remain unchanged.
Businesses and not-for-profits will still need to prove 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 charities and not-for-profits.
To claim JobKeeper payments from 28 September 2020 to 3 January 2020, employers will be required to prove that their actual GST turnover has fallen by the above mentioned percent in both the June and September 2020 quarters relative to comparable periods.
In order to be eligible for JobKeeper payments from 4 January 2021 to 28 March 2021 businesses will need to demonstrate that their actual GST turnover has significantly decreased in all of the June, September and December 2020 quarters relative to comparable periods.
Comparable periods will generally be the corresponding quarters in 2019.
The payment rate of $1,500 per fortnight for eligible employees will be reduced to $1,200 per fortnight on 28 September 2020 and again to $1,000 per fortnight on 4 January 2021.
Employees whose normal work hours are fewer than 20 hours per week will receive lower payment rates of $750 per fortnight from 28 September 2020 and $650 per fortnight from 4 January 2021.
Normal working hours will still be determined by how many hours were worked on average in the four weeks leading up to 1 March 2020.
JobKeeper Enabling Stand Down
No changes to the conditions permitting employers to utilise the JobKeeper enabling directions have been announced and these provisions can continue to be applied up until at least 28 March 2020.
If your business has utilised the JobKeeper enabling directions to stand down employees, change working arrangements or reduce employees’ hours, it is important that you regularly assess these arrangements based on the business’s current circumstances and continue to communicate the same with staff.
Please contact our office if you wish to discuss your obligations.