On 21 July 2020, the Government announced an extension of the JobKeeper payment program until 28 March 2021. The extended program has slight changes to the original JobKeeper program which is set to expire on 28 September 2020.
What are the proposed changes?
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The new payments will commence from 28 September 2020 for 13 fortnights, ending on 28 March 2021.
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The extended program will operate in two main phases and businesses will need to satisfy a turnover test to qualify for each phase
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There are different rates of pay for people based on hours worked
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From 28 September 2020 – 3 January 2021, a JobKeeper recipient can earn $1,200 per fortnight if the minimum threshold of working* hours is met. If the minimum working hours isn’t met, this payment is reduced to $750 per fortnight.
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From 4 January 2021 – 28 March 2021, the maximum JobKeeper payment will be reduced to $1,000 assuming the minimum threshold of working* hours is met. If the minimum working hours isn’t met, this payment is reduced to $600 per fortnight.
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Eligibility Criteria
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The eligibility criteria remains unchanged and all other eligibility criteria under the original JobKeeper payment will continue to apply.
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Employees must meet a minimum threshold for hours worked – prior to 1 March 2020, to be eligible to receive the full rate of pay.
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The JobKeeper payment will be reduced (as per table above) if the employee does not meet the minimum required hours prior to 1 March 2020.
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For eligible business participants and sole traders, a full payment will be payable where the eligible business participant was actively engaged in the business for 20 or more hours per week on average in the month of February 2020.
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The payment will be reduced (as per table above) if the business participant does not meet the required number of hours worked.
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In addition to the existing criteria, an eligible business or not-for-profit will need to satisfy the following additional turnover tests to qualify for the new JobKeeper payment program.
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An entity must demonstrate that their GST turnover has continued to be reduced by at least;
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30%, for entities with aggregated turnover of $1 billion or less
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50%, for entities with aggregated turnover of more than 1 billion
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15% for Charities and Not-for-profits
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*Minimum threshold is based on working more than 20 or more hours per week on average in the 4 weeks prior to 1 March 2020
