JobKeeper - Updated and Extended

​Over the past few weeks much noise has been made about JobKeeper and demands to extend it, review it, amend it.  On Tuesday 21 July, the Morrison Government addressed these concerns about JobKeeper and outlined the changes that would see the subsidy extended.

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​There are a couple of key points that will impact businesses currently accessing JobKeeper or for businesses that may need to apply as Covid-19 continues to impact…

JobKeeper will now extend through to until 28 March, 2021.  The program was originally due to run only until 27 September, 2020.

The current payment rate of $1500 will be reduced from 28 September 2020 and will be broken down across two tiers:

1. For employees working 20 hours or more (assessed on average hours worked in February 2020), the payment rate will be $1200 per fortnight.  This will reduce to $1000 per fortnight from 4 January 2021 until 28 March 2021.
2. For employees working less than 20 hours (assessed on average hours worked in February 2020), the payment rate will be $750 per fortnight.  This will reduce to $650 per fortnight from 4 January 2021 until 28 March 2021.

The Commissioner of Taxation will have discretionary powers to set out an alternative test where it can be shown that an employee’s hours were unusual during February 2020.  This could include periods of leave, volunteering during the bush fires or not employed for all or part of the period outlined.  

Eligibility for businesses and not for profits will be retested in October and again in early January.

1. Employers will need to show that actual GST turnover declined at least 30% for BOTH the June and September quarters to be deemed eligible for payments in the December quarter.
2. Further, employers will need to show that actual GST turnover also declined in the December quarter to receive the JobKeeper subsidy in January to March 2021.

To be considered eligible, the criteria remains the same:

• 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; or
• 15 per cent for Australian Charities and Not for profits Commission-registered charities (excluding schools and universities). 

Note that is a business or not for profit doesn’t meet the additional turnover tests that relate to the extension period, their eligibility for the period prior to 28 September is not affected.

Additionally, it is important to know that the JobKeeper Enabling Directions legislation has also been extended and will continue to apply for all businesses who remain eligible for the JobKeeper subsidy.

​The extension of the subsidy will allow many businesses to breathe a sigh of relief but it may also raise more questions.  Please contact the HR Staff n’ Stuff team if you need further guidance as to how this announcement may impact you.

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