On 21 July 2020, the Federal Government announced an extension to the JobKeeper program until 28 March 2021. However, the rules have changed, and it is important that members understand the new arrangements.
From 28 September 2020, businesses seeking to claim the JobKeeper Payment will be required to demonstrate that they have suffered a decline in turnover using actual GST turnover (rather than projected GST turnover).
From 28 September 2020, businesses will be required to reassess their eligibility with reference to their actual GST turnover in the September quarter 2020 to be eligible for the JobKeeper Payment from 28 September 2020 to 3 January 2021.
From 4 January 2021, businesses 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 the December quarter 2020 to be eligible for the JobKeeper Payment from 4 January 2021 to 28 March 2021.
In addition, from 3 August 2020 the relevant date of employment will move from 1 March to 1 July 2020, increasing employee eligibility for the existing scheme and the extension.
A two-tiered payment will also be introduced from 28 September, to better align the payment with the incomes of employees before the onset of the COVID-19 pandemic. Employees who were employed for less than 20 hours a week on average in the four weekly pay periods ending before 1 March 2020 will receive the lower payment rate.
JobKeeper Payment rates from 28 September 2020 to 28 March 2021:
|Date||Full rate per fortnight|| Less than 20hrs worked
per fortnight rate
|28/9/20 to 3/1/21||$1,200||$750|
|4/1/21 to 28/3/21||$1,000||$650|
If you do not meet the turnover test in the extension period this does not affect your eligibility prior to 28 September 2020.
Importantly, the JobKeeper Payment will continue to remain open to new participants that meet the eligibility requirements.
The Treasurer also confirmed that an independent evaluation will be conducted at the conclusion of the program, as recommended by the review of the JobKeeper program.While JobKeeper has been invaluable for many of our members over the initial six month period, it is expected, given the current environment, that many of our members in South Australian and the Northern Territory may not qualify for the extended periods. If you have any questions about the new JobKeeper arrangements, contact the WR team on (08) 8291 2000 or at email@example.com.