The Government has announced today it is extending the JobKeeper Payment for six-months, which will see the scheme finish up at the end of March 2021. This extension will provide targeted support to those organisations which continue to be significantly impacted by COVID-19.
From 28 September 2020, eligibility for the JobKeeper Payment will be based on actual turnover in the relevant periods, the payment will be stepped down and paid at two rates.
JobKeeper payment rates
The JobKeeper payment rate is to be reduced and paid at two rates:
- The payment rate of $1,500 per fortnight for eligible employees and business participants will be reduced to $1,200 per fortnight from 28 September 2020.
- From 4 January 2021 to 28 March 2021, the payment rate will be $1,000 per fortnight for all eligible employees. From 28 September 2020, lower payment rates will apply for employees and business participants that worked fewer than 20 hours per week.
From 28 September 2020, businesses and not-for-profits seeking to claim the JobKeeper Payment will be required to demonstrate that they have suffered an ongoing significant decline in turnover using actual GST turnover (rather than projected GST turnover).
Businesses and not-for-profits from 28 September 2020, 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
Additional turnover tests
From 4 January 2021, businesses and not-for-profits will need to further 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 with reference to their actual GST turnover in each of the June, September and December quarters 2020 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).
If a business or not-for-profit does not meet the additional turnover tests 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 existing eligibility requirements and the additional turnover tests during the extension 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.