Covid-19 Government Stimulus Response – JOBKEEPER PAYMENT EXTENSION

Covid-19 Government Stimulus Response – JOBKEEPER PAYMENT EXTENSION – Update 21 July 2020

Government announces changes to JobKeeper

On 21 July the Government announced it is extending the JobKeeper Payment for a further six months until 28 March 2021 and is targeting support to those businesses and not-for-profits who continue to be significantly impacted by the Coronavirus.

JobKeeper changes

The changes to JobKeeper include:

  • extending the scheme until 28 March 2021
  • introducing a tiered payment approach depending on employment hours
  • reducing the amount of the payment in two stages, and
  • eligible employers to continue to meet the decline in turnover test.

 

Eligibility – Turnover Tests

 To qualify for the 28 September 2020 to 3 January 2021 payments:

  • businesses and not-for-profits will need to demonstrate that their actual GST turnover has significantly fallen in the both the June 2020 and September 2020 Quarters compared with the June 2019 and September 2019 Quarters.

 

To qualify for the 4 January 2021 to 28 March 2021 payments:

  • businesses and not-for-profits will need to demonstrate that their actual GST turnover has significantly fallen in the both the June 2020, September 2020 and December 2020 Quarters compared with the June 2019, September 2019 and December 2019 Quarters.

 

Businesses and not-for-profits will need to demonstrate that they have experienced the following decline in turnover (which remains the same as existing rules):

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

 

Registered religious institutions responsible for religious practitioners will continue to be eligible to receive the JobKeeper Payment provided they meet existing eligibility requirements and the additional turnover tests during the extension period.

JobKeeper Payment Rates

 From 28 September 2020 to 3 January 2021, the JobKeeper Payment rates will be:

  • $1,200 per fortnight for all eligible employees who, in the four weeks of pay periods before 1 March 2020, were working in the business or not-for-profit for 20 hours or more per week on average and for eligible business participants who were actively engaged in the business for 20 hours or more per week on average in the month of February 2020; and
  • $750 per fortnight for other eligible employees and business participants.

 

From 4 January 2021 to 28 March 2021, the JobKeeper Payment rates will be:

  • $1,000 per fortnight for all eligible employees who, in the four weeks of pay periods before 1 March 2020, were working in the business or not-for-profit for 20 hours or more per week on average and for eligible business participants who were actively engaged in the business for 20 hours or more per week on average in the month of February 2020; and
  • $650 per fortnight for other eligible employees and business participants.

Further information can be found on the Australian Government Treasury site at:

https://treasury.gov.au/coronavirus/jobkeeper

The Team at Rawson Verco Need are ready to assist you to understand how these changes are relevant to your circumstances and to help you navigate through these challenging times.

More Posts