JobKeeper Payment Scheme Extension

The original JobKeeper Payment scheme (the Scheme) was announced on 30 March 2020 by the Prime Minister and the Treasurer. The purpose of the Scheme is to keep people employed even though the business they work for has suffered a downturn including a ‘hibernation’ or close down for a temporary period. The Scheme was to run from Monday 30 March 2020 to Sunday 27 September 2020.

The JobKeeper extension (JobKeeper extension) was announced on 21 July and will extend the scheme until 28 March 2021. Further refinements were announced by the Treasurer on Friday 7th August 2020 mainly as a result of the Victorian Stage 4 Restrictions.

The original scheme enabled eligible employers to claim a fortnightly payment of $1,500 per eligible employee from 30 March 2020, for a maximum period of 6 months. The extension of the scheme will see a more targeted and tapered approach with a two-tier wage subsidy and two additional JobKeeper periods of three months each.

 

What’s new?

From 28 September 2020:

  • a two-tier payment rate will apply based on the worker’s working hours
  • the current $1,500 per fortnight payment rate will be reduced on 28 September 2020 and reduced further on 4 January 2021
  • the decline in turnover will be retested on a quarterly basis, and
  • the decline in turnover test will be based on actual GST turnover.

From 28 September 2020 to 3 January 2021,
the JobKeeper Payment rates will be:

  • $1,200 per fortnight for all eligible employees and for eligible business participants who were working for more than 80 hours or more in the 28 days before the end of the most recent pay period ending before 1 March 2020 or for all eligible employees who were working for more than 80 hours or more in the 28 days before the end of the most recent pay period ending before 1 July 2020, 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:

  • $1,000 per fortnight for all eligible employees and for business participants who were working for more than 80 hours or more in the 28 days before the end of the most recent pay period ending before 1 March 2020 or for all eligible employees who were working for more than 80 hours or more in the 28 days before the end of the most recent pay period ending before 1 July 2020; and
  • $650 per fortnight for other eligible employees and business participants.

Is your business eligible for your employees in the extension period(s)?
An employer is entitled to the JobKeeper payment in respect of an individual (an employee) in relation to an extension period if it meets the revised eligibility rules. For further information please see the attached guides.

Important – Action Required by 31 October 2020: 

  • You must enrol with the ATO (if not already enrolled from the initial scheme)
  • Submit the business’ actual decline in turnover via the appropriate channels.
  • You must meet the wage condition for the first two fortnights (commencing 28 September and 12 October) by 31 October 2020. That is, you must ensure you pay the relevant rate to your employees before 31 October 2020.

 

Downloads:

1. JobKeeper – The Next Steps
2. JobKeeper 2.0 – JobKeeper from 28 September 2020