JOBKEEPER EXTENSION ANNOUNCED
21st July 2020
21st July 2020
Today the Federal Government announced an extension of the JobKeeper Payment scheme by a further six months. The JobKeeper Payment is a scheme to support organisations significantly impacted by the COVID-19 pandemic. The scheme, which was originally due to run until 27 September 2020, will now continue until 28 March 2021 with some changes.
The Government announced that the existing JobKeeper Payment will remain unchanged until 27 September 2020. From 28 September 2020, the JobKeeper Payment will target the most significantly impacted organisations and will see a stepped down, two-tiered payment rate introduced.
Specific elements of the extended scheme include:
- The fortnightly payment rate will be reduced to $1,200 per fortnight from 28 September 2020 and to $1,000 per fortnight from 4 January 2021.
- From 28 September 2020, lower payment rates will apply for employees and business participants that worked fewer than 20 hours per week. The fortnightly payment rate will be $750 per fortnight from 28 September 2020 and to $650 per fortnight from 4 January 2021.
- From 28 September 2020, eligible organisations will need to demonstrate they have suffered an ongoing significant decline in turnover.
- From 28 September 2020, organisations will also have to reassess their eligibility for the scheme for the June and September quarters 2020. The relevant decline in turnover test must be met in both of those quarters to be eligible for the JobKeeper Payment from 28 September 2020 to 3 January 2021.
- From 4 January 2021, organisations will also have to reassess their eligibility for the scheme for the June, September and December quarters 2020 to remain eligible for the JobKeeper Payment from 4 January 2021 to 28 March 2021.
- If a business or not-for-profit does not meet the additional turnover tests for the extension period, this does not affect their eligibility prior to 28 September 2020.
- Other eligibility rules remain unchanged.
For further information related to the JobKeeper Payment scheme and the announced extension can be found on the ATO website - www.ato.gov.au/General/JobKeeper-Payment/ and the Treasury website - https://treasury.gov.au/coronavirus/jobkeeper/extension.