The JobKeeper Payment scheme is a temporary subsidy for businesses significantly affected by coronavirus (COVID-19).
Eligible employers, sole traders and other entities can apply to receive $1,500 per eligible employee per fortnight. It has been instrumental in supporting job retention, maintaining employment links and business cash flow, as well as providing income support to eligible employees. This extension will provide further support to significantly impacted businesses so more Australians can retain their jobs and continue to earn an income.
On 21 July, the government announced proposed changes to JobKeeper including an extension through to 28 March 2021. These changes do not impact JobKeeper payments until after 28 September 2020. Tiered payments to for eligible staff from 28 September to 30 January 2021 and 4 January to 28 March 2021
From 28 September 2020, organisations seeking to claim JobKeeper payments will be required to reassess their eligibility for the JobKeeper extension 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.
Organisations 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.
“Employers will need to demonstrate that they’ve met the relevant decline in turnover in both the June and September quarters to be eligible for the JobKeeper payment in the December quarter,” Mr Frydenberg said.
“Employers will need to demonstrate that they have met the relevant decline in each of the previous three quarters ending on 31 December 2020 to remain eligible for the payment in the March quarter 2021.”
While there are currently 3.5 million workers covered under JobKeeper, the Treasury expects the new eligibility rules to see the figure fall to just 1.4 million workers for the December 2020 quarter, before dropping to 1 million workers in the March 2021 quarter.
The JobKeeper Payment will continue to remain open to new participants that meet the eligibility requirements.
Fact sheet from the Treasury can be found here.
If you would like to find out more or are looking for a new accountant, please contact us at The Tax Accountant and we will be able to help you.⠀
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