Parliament has signed off on a six month extension to the $100 billion JobKeeper scheme, replacing the $1,500 a fortnight payment with a new two-tier payment rate from 28 September 2020.
From September 28, the payment will fall to $1,200 a fortnight, followed by a further drop at the beginning of January 2021 to $1,000. But that’s only if you were working at least 20 hours a week before JobKeeper was introduced. If you were a part-timer, then your payment will fall to $750 per fortnight from the end of the month, then to $650 at the start of next year.
The changes are due to come into effect in less than four weeks’ time, despite the fact Melbourne is currently still under strict lockdown. The Government estimates that from October onwards, more people will be on JobKeeper in Victoria than in the rest of the country combined.
To be eligible for the extension, businesses must re-apply for the payment from September 28, 2020 and be able to demonstrate that they have suffered a decline in turnover using actual GST turnover (rather than projected GST turnover).
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).
If a business or not-for-profit does not meet the turnover test for the extension period, this does not affect their eligibility prior to 28 September 2020.
The JobKeeper Payment will continue to remain open to new recipients, provided they meet the eligibility requirements and the turnover tests that apply during the relevant JobKeeper Payment period.
For more information about the JobKeeper Payment extension and requirements click here to download the fact sheet.
If you have any questions or would like to organise a phone meeting with an Accountant please, contact us.
Disclaimer: This blog post is intended to provide a general summary only; the information should not be relied on as a substitute for professional advice.