Many would agree that JobKeeper has been a lifeline for many businesses through the COVID19 Pandemic.
The current JobKeeper program is due to come to an end on 27 September 2020 and with the crisis continuing and further lockdowns in Victoria, the Federal Government announced an extension to JobKeeper out to 28 March 2021.
Please note that none of the changes below have passed through parliament at the time of this article being written. Further updates will be provided, if any, once these changes have passed through parliament.
What has changed with Business Eligibility?
From 28 September 2020, all businesses and not-for-profits will need to re-assess their eligibility to be eligible from 28 September to 3 January 2021 and then re-assess again to be eligible from 4 January 2021 to 28 March 2021
Eligibility will be assessed as follows:
JobKeeper Extension period 28 September 2020 to 3 January 2021:
- Eligibility re-assessment based on Actual Turnover during the September 2020 quarter (1 July 2020 to 30 September 2020)
JobKeeper Extension period 4 January 2021 to 28 March 2021:
- Further Eligibility re-assessment based on Actual Turnover during the December 2020 quarter (1 October 2020 to 31 December 2020)
Alternative tests are yet to be released for businesses and not-for-profits who don’t have a suitable comparison period to assess decline in turnover
What has changed with Employee Eligibility and payment rates?
- The reference date for assessing which employees are eligible for the JobKeeper Payment is now 1 July 2020 with effect from 3 August 2020.
- From 28 September 2020 to 3 January 2021, the payment rates will be the following:
- $1,200 per fortnight for all eligible employees who, in the four weekly pay periods before the reference period, were working in the business or not-for-profit 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
- $750 per fortnight for employees who were working in the business or not-for-profit 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 reference period.
- From 4 January 2021 to 28 March 2021, the payment rates will be the following:
- $1,000 per fortnight for all eligible employees who, in the four weekly pay periods before the reference period, were working in the business or not-for-profit 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
- $650 per fortnight for employees who were working in the business or not-for-profit 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 reference period.
- The reference period for employees regarding their hours worked to determine their tier of payment will be the two fortnightly pay periods prior to 1 March 2020 or 1 July 2020. The period with the higher number of hours is to be used for employees who were eligible at 1 March 2020.
Please note that the current JobKeeper program continues to run until 27 September 2020 and if you have not enrolled in the program, however feel that your income is declining due to the Stage 4 lockdowns in Victoria or if you have any further questions in relation to the JobKeeper Extension please feel free to contact us for assistance.