JobKeeper 2.0 - What's Changed & How Does It Affect Me and My Business?
Extension of JobKeeper
The JobKeeper Payment scheme will be extended by six months until 28 March 2021, the proposed extension basically doubles the length of the original scheme.
From 28 September 2020:
a two-tier payment rate will apply based on the worker’s average weekly work hours in February 2020;
the current $1,500 per fortnight payment rate will be reduced on 28 September 2020 and reduced further on 4 January 2021;
the decline in turnover will be retested on a quarterly basis; and
the decline in turnover test will be based on actual GST turnover.
Payment Rates
The current payment rate is $1,500 per fortnight. This is a flat rate regardless of the employee’s work hours at any time.
The payment rate will be reduced in two tranches as follows: The eligibility criteria for the full rate and the partial rate are explained below:
JobKeeper Payment Rates - Current and Extended
Currently, eligible employees are entitled to $1,500 per fortnight regardless of the number of hours worked. From 28 September 2020 this changes to the above rates for eligible employees and eligible business participants.
Under the current scheme, the requirement for an employee to have been employed on 1 March 2020 and for a business participant to have been actively engaged in the business on 1 March 2020 does not include a minimum number of hours of the employment or active engagement.
Business participants who pre-March 2020, worked in their business for less than 20 hours per week (average) but have since increased their active participation due to the crisis will not qualify for the full payment rate regardless of how many hours they work in their business from 28 September 2020.
Turnover Tests
To receive JobKeeper payments from 28 September 2020, businesses will need to meet the basic eligibility tests and an extended decline in turnover test based on actual GST turnover.
Case Study from Treasury Fact Sheet
Treasury Fact Sheet
The Treasury fact sheet (the Fact Sheet) titled Extension of the JobKeeper Payment is available here: https://treasury.gov.au/sites/default/files/2020-07/Fact_sheet- JobKeeper_Payment_extension.pdf
Any questions please get in touch - we will be running a webinar over the next few days , so keep a look out.