JobKeeper tweaked and extended beyond 28 September to 28 March 2021

The devil is in the detail and as further details are released we will provide updates and assistance that will help our clients determine whether they are eligible for the extended version/s of JobKeeper.

Here is a short updated of the details announced today:

The Federal Government announced today that JobKeeper would be extended beyond 28 September 2020 to 28 March 2021.

Tiered approach

From 28 September 2020 to 3 January 2021, the JobKeeper payment rates will be $1,200 per fortnight for all eligible employees who, in the four weeks of pay periods before 1 March 2020, were working in the business or NFP for 20 hours or more a week on average and $750 per fortnight for other eligible employees and business participants.

From 4 January 2021 to 28 March 2021, the JobKeeper Payment rates will be decreased to $1,000 per fortnight for all eligible employees who, in the four weeks of pay periods before 1 March 2020, were working in the business or not-for-profit for 20 hours or more a week on average and $650 per fortnight for other eligible employees and business participants.

Payment requirements

Businesses and not-for-profits will be required to:

  • nominate which payment rate they are claiming for each of their eligible employees
  • make payments to employees equal to, or greater than, the amount of the JobKeeper Payment (before tax), based on the payment rate that applies to each employee.

Payments will continue to be made by the ATO to employers in arrears.

Additional turnover tests

In order to be eligible for the first JobKeeper Payment extension period of 28 September 2020 to 3 January 2021, businesses and NFPs will need to demonstrate that their actual GST turnover has significantly fallen in the both the June quarter 2020 and the September quarter 2020 relative to comparable periods (generally the corresponding quarters in 2019).

In order to be eligible for the second JobKeeper Payment extension period of 4 January 2021 to 28 March 2021, they will again need to demonstrate that actual GST turnover has significantly fallen in each of the June, September and December 2020 quarters relative to comparable periods (generally the corresponding quarters in 2019).

The Commissioner of Taxation will have discretion to set out alternative tests.

The decline in turnover remains the same as the existing rules, ie. 30% for those with an aggregated turnover of $1bn or less; or 15% for Australian Charities and NFPs.

Please get in touch with our team if you have any questions related to these updates.

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