JobKeeper Extension Announcement
On 21 July the government announced proposed changes to the JobKeeper Payment including an extension through to 28 March 2021. These changes do not impact JobKeeper payments until after 28 September 2020.
This newsletter includes a range of information for businesses and individuals, including:
Extension of the JobKeeper Payment
JobKeeper Payment rates and eligibility
JobKeeper Payment - Protecting integrity
JobKeeper Payment - Changes to the Fair Work Act
Extension of the JobKeeper Payment.
The JobKeeper Payment was originally due to run until 27 September 2020, but on 21 July the government announced a 6 month extension on the JobKeeper Payment until 28 March 2021. This support will be targeting those businesses who continue to be significantly impacted by the Coronavirus.
From 28 September 2020, the eligibility for the JobKeeper Payment will be based on actual turnover in the relevant periods, and the payment will be stepped down and paid at two rates, further details below.
More information.
JobKeeper Payment rates and eligibility.
From 28 September 2020, organisations seeking to claim JobKeeper payments will be required to demonstrate that they have suffered an ongoing significant decline in turnover and will be required to reassess their eligibility. The JobKeeper Payment rate will also be reduced and paid at two different rates.
From 28 September 2020 to 3 January 2021:
Organisations seeking to claim JobKeeper payments will be required to reassess their eligibility for the JobKeeper extension with reference to their actual GST turnover (rather than projected GST turnover) in the June and September quarters 2020. Organisations will need to demonstrate that they have met the relevant continuing decline in turnover test in both of those quarters to be eligible for JobKeeper from 28 September 2020 to 3 January 2021.
The payment rates will be:
$1,200 per fortnight for all eligible employees who, in the four weeks before 1 March 2020, were working in the business for 20 hours or more a week on average and for business participants who were actively engaged in the business for more than 20 hours per week.
$750 per fortnight for employees who were working in the business for less than 20 hours a week on average and business participants who were actively engaged in the business less than 20 hours per week in the same period.
From 4 January 2021 to 28 March 2021:
From 4 January 2021, organisations will need to further reassess their turnover to be eligible for the JobKeeper Payment. They will need to demonstrate that they have met the relevant decline in turnover test with reference to their actual GST turnover in each of the June, September and December quarters 2020 to remain eligible for the JobKeeper Payment from 4 January 2021 to 28 March 2021.
The payment rates will be:
$1,000 per fortnight for all eligible employees who in the four weeks before 1 March 2020, were working for 20 hours or more a week on average and for business participants who were actively engaged in the business for more than 20 hours per week.
$650 per fortnight for employees who were working for less than 20 hours a week on average and business participants who were actively engaged in the business for less than 20 hours per week in the same period.
JobKeeper payment - Protecting integrity.
The JobKeeper Payment and the related programs represent a significant investment to support the Australian economy and people in the face of the Coronavirus crisis. To protect this investment, the framework for the JobKeeper Payment has robust features to ensure integrity and allow swift and effective action to be taken against fraud and other abuse.
The JobKeeper Payment draws on the existing regulatory and enforcement infrastructure of the Australian Taxation Office (ATO). These integrity features range from the eligibility requirements to specific rules to address contrived schemes and fraud. These requirements are in addition to the existing administrative and civil penalties and criminal offences that apply in the taxation law and general criminal law.
These measures will not affect taxpayers that do the right thing, but will allow for swift and effective action to be taken against those that seek to abuse the scheme and obtain more than their entitlements.
Keep reading.
JobKeeper payment - Changes to the Fair Work Act.
The government has amended the Fair Work Act to enable employers who are entitled to receive the JobKeeper Payment to temporarily vary working arrangements for eligible employees in order to keep people employed. The amendments to the Fair Work Act will only apply to national system employers who receive JobKeeper payments and can only be used for employees to whom those payments relate. There are strong protections for employees from employer misuse of these provisions.
These amendments cease entirely on 28 September 2020.
Keep reading.