Wrights CA Blog

Extension of the JobKeeper Payment


EXTENSION OF JOBKEEPER PAYMENT 

Key Points

  • The JobKeeper payment will be extended to March 2021. 
  • The payment of $1,500 per fortnight will be reduced from 28 September 2020 and again on 4 January 2021. 
  • From 28 September 2020, businesses and not-for-profits will be required to reassess their eligibility with reference to their actual GST turnover (not projected) in the June and September quarters 2020.

Read the Australian Government fact sheet here. 

The Government is extending the JobKeeper payment by a further 6 months to March 2021, but with tighter access and reduced rates.  From 28 September 2020, employers seeking to claim JobKeeper payments will need to reassess their eligibility and prove an actual decline in turnover.

 

What is the payment being reduced to? 

Fact sheet: Extension of the JobKeeper Payment

The payment rate of $1,500 per fortnight for eligible employees and business participants will be reduced.

From 28 September 2020 the rate will be reduced to: 

  • $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 a 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 the rate will be reduced to: 

  • $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 a week on average and for 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.

Businesses and not-for-profits will be required to nominate which payment rate they are claiming for each of their eligible employees (or business participants).

 

Who will be eligible for JobKeeper 2.0?

Fact sheet: Extension of the JobKeeper Payment

From 28 September 2020, businesses and not-for-profits will be required to reassess their eligibility with reference to 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 those quarters to be eligible for the JobKeeper Payment from 28 September 2020 to 3 January 2021.

Fact sheet: Extension of the JobKeeper Payment

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

  • Fact sheet: Extension of the JobKeeper Payment

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

Additional turnover tests

In order to be eligible for the JobKeeper Payment after 27 September 2020, businesses and not-for-profits will have to meet a further decline in turnover test for each of the two periods of extension, as well as meeting the other existing eligibility requirements for the JobKeeper Payment.


Assessing if an employee has worked 20 hours or more

JobKeeper payments from 28 September 2020 are paid at a lower rate for employees who worked less than 20 hours per week on average in the four weeks of pay periods before 1 March 2020. 

The Commissioner of Taxation will have discretion to set out alternative tests for those situations where an employee's or business participant's hours were not usual during February 2020. Also, the ATO will provide guidance on how this will be dealt with when pay periods are not weekly.

Read the Australian Government fact sheet here. 


If you require support navigating the JobKeeper scheme, speak to one of our accounting specialists today