Extension of the JobKeeper Scheme

Extension of the JobKeeper Scheme

July 22nd, 2020 Posted by B&W Additions News, Individuals, Jobkeeper Payment, News, Pension, Retirees, Superannuation No Comment yet

The Government announced on 21 July 2020 that they will be extending the JobKeeper scheme for another six months. Payments dates for the JobKeeper scheme when originally announced were to 27th September 2020.  Due to the continued deterioration of the economy and the community spread of COVID-19 the scheme will now run until 28 March 2021. We have outlined below some of the key points of the extended scheme as announced today.


Eligibility

To be eligible for the JobKeeper payments under the extended time frame you will need to have experienced an actual decline in turnover of:

  • 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; or 
  • 15 per cent for Australian Charities and Not for profits Commission-registered charities 

The JobKeeper payment extension is open to both existing and new recipients as long as you meet the original eligibility requirements and the additional turnover tests during the extension period. 


Comparison Period

For JobKeeper extension dates commencing 28th September 2020 and ending 3rd January 2021 you will need to demonstrate that you have met the relevant continuing decline in turnover test in both of the following quarters:

  • June 2020 quarter v June 2019 quarter; and
  • September 2020 quarter v September 2019 quarter.

You will then need to re-assess your ongoing eligibility in January for the period commencing 4th January 2021 and ending 28th March 2021.  To be eligible for the continued JobKeeper payments you will need to demonstrate that you have met the relevant continuing decline in turnover test in all of the following quarters:

  • June 2020 quarter v June 2019 quarter; and
  • September 2020 quarter v September 2019 quarter; and
  • December 2020 quarter v December 2019 quarter.

Recipients will need to assess their eligibility in advance before finalising their Business Activity Statements in order to enrol in the extended JobKeeper scheme. To give employers time to evaluate, the Commission of Taxation will have the discretion to extend the time where employers are required to pay the JobKeeper top up in advance in order to be reimbursed by the Australian Tax Office.

The existing rules for eligible employees remain unchanged.


Payment rates

For JobKeeper extension dates commencing 28th September 2020 to 3rdJanuary 2021 the payment rate are as follows:

  • $1,200 per fortnight for all eligible employees who, in the four weeks 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
  • $750 per fortnight for other eligible employees and business participants.

For JobKeeper extension dates commencing 4th January 2021 to 28th March 2021 the payment rate are as follows:

  • $1,000 per fortnight for all eligible employees who, in the four weeks 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
  • $650 per fortnight for other eligible employees and business participants.

For further information, visit the Australian Government Treasury Website fact sheet

Should you have any queries regarding the JobKeeper Scheme, please do not hesitate to contact either our office on 03 96291433 to discuss.

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