JobKeeper has been extended – here’s what you need to know

The Government has today announced additional assistance in the form of an extended JobKeeper program. While most of the information has been announced there is still some to come and we will be able to keep you updated as we learn more.

Since we published this article some further changes have been announced, check out these changes here.

JobKeeper Program

The original program was to end on the 28^th September, but the Government has now announced JobKeeper Phase 2 which will continue until March 28, 2021 for some businesses.

If you are currently receiving JobKeeper payments, these will continue unchanged until the 28^th September.

Updated Eligibility Criteria and Turnover Testing

To be eligible to continue in the updated JobKeeper program businesses will need to satisfy the new JobKeeper turnover tests. To do so they must demonstrate that they have suffered an ongoing significant decline in turnover using actual GST turnover.

From 28 September 2020, businesses and not-for-profits will be required to reassess their eligibility based on their actual GST turnover in the June and September quarters 2020. They will need to demonstrate that they have met the relevant decline in turnover test in both of these quarters to be eligible for the JobKeeper Payment from 28 September 2020 to 3 January 2021.

From 4 January 2021, businesses and not-for-profits will need to again reassess their turnover to be eligible for the JobKeeper Payment. They will need to demonstrate that they have met the relevant decline in turnover test in the June, September and December quarters to remain eligible for the JobKeeper Payment from 4 January 2021 to 28 March 2021.

To be eligible for JobKeeper Payments under the extension, businesses and not-for-profits will still 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; or
• 15 per cent for Australian Charities and Not for profits Commission-registered charities (excluding schools and universities).

Businesses and not-for-profits will generally be able to assess eligibility based on details reported in the Business Activity Statement (BAS). Alternative arrangements will be put in place for businesses and not-for-profits that are not required to lodge a BAS.

For businesses where it is not appropriate to compare the actual turnover of a quarter in 2019 with the actual turnover of a quarter in 2020 we expect that new alternative tests will be created.

Updated Payment Amounts

• From September 28^th to January 3^rd the payment rates will be:
  • $1200 per fortnight for eligible employees who worked more than 20 hours per week on average during the 4 weeks prior to March 1^st, 2020.
  • $750 per fortnight for all other eligible employees.
• From January 4^th to March 28^th the payment rates will be:
  • $1000 per fortnight for eligible employees who worked more than 20 hours per week on average during the 4 weeks prior to March 1^st, 2020.
  • $650 per fortnight for all other eligible employees.

Where the hours worked in the February 2020 reference period were not normal there will be alternative tests set out.

The new JobKeeper fact sheet from Treasury is available here.

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