JobKeeper has been extended to help those businesses that continue to be significantly affected by COVID-19, however, it will be harder to qualify. This is a summary of the new payment rates and eligibility criteria.
On 21 July, the federal government announced that there will be an extension to the JobKeeper payment by six months from 28 September 2020 to 28 March 2021. There will be no changes to the JobKeeper payment until 27 September 2020 and payments will continue for eligible businesses until this date.
After 28 September 2020, JobKeeper will be broken down into two different periods and businesses will need to qualify for each period. Payment will be reduced and paid at two different rates depending on the amount of hours worked by the employee per week. A summary of the rates is below:
|Date||Full rate||Lower rate|
|Monday 28 September 2020 to Sunday 3 January 2021||$1,200||$750|
|Monday 4 January 2021 to Sunday 28 March 2021||$1,000||$650|
From Monday 28 September 2020, eligible employees and business participants will receive the lower rate if they are working less than 20 hours per week on average. Calculation of average hours per week will be based on the four weekly pay periods ending before Sunday 1 March 2020. Employers will be required to nominate which payment rate will apply for each of their eligible employees.
To continue to receive JobKeeper after 28 September 2020, businesses will be required to demonstrate that they have continued to experience a significant decline in their turnover. To be able to demonstrate this, business owners much use actual GST turnover rather than projected turnover.
- To receive JobKeeper between 28 September 2020 and 3 January 2021, a business must meet the decline in turnover test in both the June 2020 and September 2020 quarters to be eligible for JobKeeper payment.
- To receive JobKeeper between 4 January 2021 and 28 March 2021, businesses will need to further assess and must meet the decline in turnover test for the June 2020, September 2020 and December 2020 quarters to be eligible for JobKeeper payment.
The decline in turnover test means that for businesses with turnover under $1 billion, they must demonstrate that they have experienced a decline in turnover of 30% or more. Employees who are eligible for JobKeeper are those that were employed before 1 March 2020.
If you do not meet the turnover test to be eligible for the JobKeeper extension, this does not affect your eligibility prior to 28 September 2020. The payment is also open to new participants, provided they meet the eligibility criteria.
Further information is available on the Treasury Website.
Need help navigating JobKeeper?
If you need help calculating your JobKeeper entitlement, please contact us. We are 100% virtual. However, if you would prefer an onsite visit, we are located in the beautiful Riverina region and service the areas of Albury, Wodonga, Griffith and Leeton.