On Tuesday 1 September the Government passed legislation extending the availability of the JobKeeper Payment to 28 March 2021. A number of changes have been implemented with the extension, including reducing the overall payment rate and lowering the rate further for those who work fewer hours.

We have summarised the changes below.

Eligibility

• From 3 August 2020, the relevant date of employment moved from 1 March to 1 July 2020, meaning that employees who commenced work before 1 July 2019 will now be considered eligible for JobKeeper, providing they meet all additional criteria
• From 28 September 2020, businesses will need to demonstrate that they have suffered a decline in turnover using actual GST turnover, rather than projected GST turnover
• The decline in turnover rates have remained the same at 30% for those with an aggregated turnover of $1 billion or less, and 50% for those with an aggregated turnover of more than $1 billion
• To be eligible for the JobKeeper Payment from 28 September 2020 to 3 January 2021, businesses will need to have suffered the relevant downturn for the September quarter 2020 (July, August, September) relative to a comparable period (generally the same period from 2019)
• To be eligible for the JobKeeper Payment from 4 January 2021 to 28 March 2021, businesses will need to have suffered the relevant downturn for the December quarter 2020 (October, November, December) relative to a comparable period (generally the same period from 2019)
• For businesses and non-profits who lodge their BAS after the required JobKeeper dates, eligibility will need to be assessed in advance of the BAS deadline in order to meet the wage condition (which requires them to pay employees in advance of receiving the JobKeeper Payment in arrears from the ATO)

Payment rates

• From 28 September 2020 to 3 January 2021, the payment rate for eligible employees who worked an average of 20 or more hours per week (in the four weeks before either 1 March or 1 July 2020) will be reduced to $1200 per fortnight. For all other eligible employees the rate will be reduced to $750 per fortnight
• From 4 January 2021 to 28 March 2021, the payment rate for eligible employees who worked an average of 20 or more hours per week (in the four weeks before either 1 March or 1 July 2020) will be reduced to $1000 per fortnight. For all other eligible employees the rate will be reduced to $650 per fortnight

As always, if you have any questions or require additional information please get in touch with your Client Manager who will be happy to assist.