JobKeeper Update: less dollars but, around longer
The Australia Government has made its much anticipated announcement
about the JobKeeper program, extending it to 28 March 2021. The program will continue to run in its existing form, until its originally scheduled conclusion on 27 September 2020. From 28 September 2020 JobKeeper will continue with the following changes:
- Employees who were actively engaged in a business for an average of 20 hours per week or more in February 2020 will be moved to a payment rate of:
- $1,200 per fortnight from 28 September 2020 until 3 January 2021; and
- $1,000 per fortnight from 4 January 2021 until the conclusion of the program on 28 March 2021.
- Employees who were engaged for less than 20 hours per week in the month of February 2020 will be moved to a payment rate of:
- $750 per fortnight from 28 September 2020 until 3 January 2021; and
- $650 per fortnight from 4 January 2021 until the conclusion of the program on 28 March 2021.
- Eligibility in regards to the turnover test will be reassessed by reference to the June and September quarters of 2020 using the actual GST turnover (rather than projected GST turnover);
- From 4 January 2021 to 28 March 2021, the turnover test will be assessed using the actual GST turnover from the June, September and December quarters of 2020;
- The required decline in turnover to satisfy the turnover test remains at 50% for large businesses (aggregated turnover of $1 billion or more), 30% for other businesses (aggregated turnover of $1 billion or less) and 15% for not-for-profits and charities other than schools and universities.
The Commissioner for Taxation will have the discretion to set alternative tests where an employee’s or business participant’s hours were not usual during February 2020 (on leave, volunteering, or only recently hired).
We hope this overview has provided some useful guidance during these difficult times. However, please remember that businesses should always seek independent and specific legal and accounting advice and that we are here to support you.
Gavin Parsons and Associates can assist you with any questions you may have regarding your business or that of your clients. Contact Gavin Parsons and Associates on (02) 9262 4471 for a free no-obligation consultation today.