Update: the extension and modification of JobKeeper

The Federal Government has announced an extension of the JobKeeper Payment from 28 September 2020 to 28 March 2021 for eligible businesses.

If you currently receive the JobKeeper payment it remains unchanged and available until 27 September 2020.

From 28 September 2020, the JobKeeper Payment will be extended for eligible businesses that have been most significantly impacted. To be eligible, businesses will have to reassess their eligibility and demonstrate they have met the decline in turnover test with reference to their actual GST turnover for the:

• September quarter 2020 to be eligible for the JobKeeper Payment from 28 September 2020 to 3 January 2021.
  

• December quarter 2020 to be eligible for the JobKeeper Payment from 4 January 2021 to 28 March 2021.

Businesses will need to demonstrate that they have experienced a decline in turnover of:

• 50 per cent for those with an aggregated turnover of more than $1 billion;

• 30 per cent for those with an aggregated turnover of $1 billion or less.

The payment rates will be stepped-down and two tiers of payment will be introduced – the payment rate of $1,500 per fortnight for eligible employees and business participants will be reduced to:

• $1,200 per fortnight from 28 September 2020 for employees working 20 hours or more per week or $750 per fortnight for employees working less than 20 hours per week.
  

• $1,000 per fortnight from 4 January 2021 for employees working 20 hours or more per week or $650 per fortnight for employees working less than 20 hours per week (To qualify for the higher amount the employee must have worked 20 hours or more a week on average in the four weeks of pay periods before either 1 March 2020 or 1 July 2020).

The Employee eligibility date has changed from 1 March 2020 to 1 July 2020 – if you have new employees to include please ask them to complete the nomination form. Employees are eligible in the extension period if they:

• are currently employed by an eligible employer.

• were a full-time, part-time or fixed-term employee at 1 July 2020; or a long-term casual employee (employed on a regular and systematic basis for at least 12 months) as at 1 July 2020 and not a permanent employee of any other employer.
  

• were aged 18 years or older at 1 July 2020 (16 or 17 could also qualify if they are independent or not undertaking full time study).
  

• were either: an Australian resident (within the meaning of the Social Security Act 1991); or an Australian resident for the purpose of the Income Tax Assessment Act 1936 and the holder of a Subclass 444 (Special Category) visa as at 1 July 2020.
  

• were not in receipt of any of these payments during the JobKeeper fortnight: government parental leave or Dad and partner pay under the Paid Parental Leave Act 2010; or a payment in accordance with Australian worker compensation law for an individual's total incapacity for work.

The JobKeeper Payment will continue to remain open to new recipients, provided they meet the eligibility requirements and the turnover tests that apply during the relevant JobKeeper Payment period.

On Line Services can help with all JobKeeper requirements for your business. Contact us to find out how we can assist you.