Also known as "JobKeeper 2.0"
The Government announced on 21 July 2020 that it will extend the JobKeeper payment until 28 March 2021, and will target support to employers who continue to be significantly impacted by Coronavirus.
As part of the announcement, the government confirmed:
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The existing JobKeeper Payment will remain in place until 27 September 2020.
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From 28 September 2020, the JobKeeper Payment will be targeted to employers that have been most significantly impacted, the payment rates will be stepped-down and two tiers of payment will be introduced. Non-employing businesses will no longer be eligible for the JobKeeper Payment from this date.
There has been some good news: if your General Practice currently receives the JobKeeper payment, those payments will continue unchanged until 27 September 2020. This means that speculation the JobKeeper monthly report would be turned into an eligibility re-test has not eventuated.
The JobKeeper extension will be available to qualifying businesses from 28 September 2020 until 28 March 2021, with eligibility now linked to a continuing decline in turnover test on an ongoing quarterly basis.
Eligibility for JobKeeper extension payments
From 28 September, employers seeking to claim JobKeeper payments will need to reassess their eligibility for JobKeeper extension payments with reference to their actual turnover in the June and September quarters 2020. Organisations will need to demonstrate that they have met the relevant continuing decline in turnover test in both of those quarters to be eligible for JobKeeper from 28 September 2020 to 3 January 2021.
Employers will need to further reassess their eligibility in January 2021 for the period from 4 January to 28 March 2021. Organisations will need to demonstrate that they have met the relevant continuing decline in turnover test in each of the previous three quarters to remain eligible for the March 2021 quarter.
The JobKeeper Payment will continue to be administered by the ATO.
Changes to payment rates
From 28 September, the JobKeeper payment rate will be reduced and paid at two rates:
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From 28 September 2020 to 3 January 2021, the payment rate will be:
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$1,200 per fortnight for eligible employees or business participants who were working or actively engaged in the business for 20 hours or more per week on average in the four weeks before 1 March 2020 and;
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$750 per fortnight for employees or business participants who were working in or actively engaged in the business for less than 20 hours a week on average in the same period.
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From 4 January 2021 to 28 March 2021, the payment rate will be:
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$1,000 per fortnight for eligible employees or business participants who were working in or actively engaged in the business for 20 hours or more per week on average in the four weeks before 1 March 2020 and;
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$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 same period.
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A copy of the Government’s fact sheet on the extension of the JobKeeper Payment is available here.
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