Some important announcements yesterday for those businesses who continue to be affected by COVID-19 restrictions. The well received and targeted JobKeeper program has been extended for those business that continue to experience a decline in revenue. This extension has been affectionately named JobKeeper 2.0 and will continue for a further six months till 28 March 2021.
Additionally, one of the biggest criticisms of the original JobKeeper program (Jobkeeper 1.0) revolved around employees previously earning less than $750 a week earnt more on the program without necessarily working additional hours has also been addressed. Their solution is a two tiered payment system depending on whether the employee works above or below 20 hours a week.
The new rates are as follows for the period 28 September 2020 to 3 January 2021:
- for eligible employees and business participants who worked 20 hours or more a week on average in the month of February 2020 – A$1200 per fortnight
- for eligible employees and business participants who worked less than 20 hours a week on average in the month of February 2020 – A$750 per fortnight
These rates will then change again for the period 4 January 2021 to 28 March 2021:
- for eligible employees and business participants who worked 20 hours or more a week on average in the month of February 2020 – A$1000 per fortnight
- for eligible employees and business participants who worked less than 20 hours a week on average in the month of February 2020 – A$650 per fortnight.
Recipients of JobKeeper 1.0 will not automatically be accepted into JobKeeper 2.0. Instead there will be a reassessment requirement to ensure that only the businesses that need the most help will continue to receive the payments.
Consequently, to be eligible for the JobKeeper payments from 28 September 2020 to 3 January 2021, businesses must satisfy the relevant decline in turnover test for the June quarter and for the September quarter based on actual GST turnover.
Additionally, to be eligible for the JobKeeper payments from 4 January 2021 to 28 March 2021, businesses must satisfy the relevant decline in turnover test for each of the June, September and December quarters based on actual GST turnover.
Employers will continue to be required to 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 (i.e. the wage condition).
If you are currently receiving JobKeeper 1.0 and would like to talk to us about JobKeeper 2.0, please don’t hesitate to contact our office.
