Extension of the JobKeeper Payment
AUGUST 2020
Sadly, many Australian businesses are a long way
from trending back to 'normal' as we approach 27
September 2020, the original date that JobKeeper
was set to end. Thankfully the government
has announced an extension of the JobKeeper
Payment, with additional turnover qualifications.
The JobKeeper Payment, which was originally due
to run until 27 September 2020, will now continue
to be available to eligible businesses (including
the self-employed) and not-for-profits until 28
March 2021.
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 and to $1,000 per fortnight from 4 January
2021. From 28 September 2020, lower payment
rates will also apply for employees and eligible
business participants that worked fewer than 20
hours per week.
From 28 September 2020, businesses and not-forprofits
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
will be required to reassess their eligibility with
reference to their actual GST turnover in the June
and September 2020 quarters. 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.
From 4 January 2021, businesses and not-forprofits
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 2020 quarters 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 at least:
- 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;
- 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.
The extended JobKeeper Payment rates
From 28 September 2020 to 3 January 2021, the
JobKeeper Payment rates will be:
- $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 to 28 March 2021, the
JobKeeper Payment rates will be:
- $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).
The JobKeeper Payment will continue to be made
by the ATO to employers in arrears. Employers
will continue to be required to make payments to
employees equal to, or greater than, the amount
of the JobKeeper Payment (before tax), based on
the payment rate that applies to each employee.
This is referred to as the wage condition.
The eligibility rules for employees remain
unchanged.
Additional new turnover tests
In order to be eligible for the JobKeeper Payment
after 27 September 2020, businesses and not-forprofits
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. In order to be eligible
for the first JobKeeper Payment extension period of
28 September 2020 to 3 January 2021, businesses
and not-for-profits will need to demonstrate that
their actual GST turnover has significantly fallen
in the both the June quarter 2020 (April, May and
June) and the September quarter 2020 (July,
August, September) relative to comparable periods
(generally the corresponding quarters in 2019).
In order to be eligible for the second JobKeeper
Payment extension period of 4 January 2021 to
28 March 2021, businesses and not-for-profits will
again need to demonstrate that their actual GST
turnover has significantly fallen in each of the June,
September and December 2020 quarters relative to
comparable periods (generally the corresponding
quarters in 2019).
Businesses and not-for-profits will generally be
able to assess eligibility based on details reported
in the Business Activity Statement (BAS).
Editor: Please contact our office if you wish to
discuss your business' eligibility for JobKeeper
payments.