With the ongoing announcements about JobKeeper Payment, it can be difficult to keep up to date. Remember, our team are across the changes and we can answer any questions you have or help you apply.
Whether you’re already getting JobKeeper, or planning to apply, you need to understand the upcoming changes to the rates and eligibility criteria.
Here’s a quick recap on what’s happened with JobKeeper Payment since it was announced earlier this year.
The JobKeeper Payment is designed to provide support to businesses who have been hit by the significant economic impact of the coronavirus.
For those employers currently receiving JobKeeper Payment, there are no changes to the scheme until 27 September 2020. If you’re not yet receiving it, you can still apply. You’ll need to meet the eligibility requirements. You can read the latest information about the current scheme on the ATO website.
In July, the Government announced the JobKeeper Payment would be extended by another 6 months, until 28 March 2021. The Government announced further changes on 7 August 2020 to adjust the reference date for determining employee eligibility and make it easier for organisations to qualify for the JobKeeper Payment extension. You can read about the extension of JobKeeper Payment on the Treasury website.
The JobKeeper Payment extension will be available to qualifying businesses and not-for-profits from 28 September 2020 until 28 March 2021. You’ll need to reassess your eligibility for the extension.
To get JobKeeper Payments under the extension, businesses and not-for-profits need to show a relevant decline in turnover:
– 50% for those with an aggregated turnover of more than $1 billion
– 30% for those with an aggregated turnover of $1 billion or less
– 15% for Australian Charities and Not for profits Commission-registered charities (excluding schools and universities).
The recently announced changes mean you’ll only need to demonstrate a decline in your actual GST turnover in the September 2020 quarter.
Payment rates will be also reduced, and a two-tiered payment system introduced. This will mean lower payment rates for employees and business participants that work fewer than 20 hours per week.
From 28 September, the current rate of $1,500 per fortnight for eligible employees and business participants will drop to:
– $1,200 per fortnight for all eligible employees and business participants who, in the four weekly pay periods before the reference period, were working 20 hours or more a week on average
– $750 per fortnight eligible employees and business participants who were working less than 20 hours a week on average in the reference period.
To continue to be eligible for the JobKeeper Payment from 4 January to 28 March 2020, you’ll need to reassess your turnover again. You’ll need to show a relevant decline in turnover using actual GST turnover in the December 2020 quarter only.
However, the payment rate will reduce again. The rate of $1,200 per fortnight for eligible employees and business participants will drop to:
– $1,000 per fortnight from 4 January 2021 for all eligible employees who in the four weekly pay periods before the reference period, were working for 20 hours or more a week on average and for business participants who were actively engaged in the business for more than 20 hours per week
– $650 per fortnight for employees who were working for less than 20 hours a week on average and business participants who were actively engaged in the business for less than 20 hours per week in the reference period.
Contact us today if you want to discuss the impact on your business.