The existing JobKeeper Payment will continue as planned until 27 September 2020. The Government has announced yesterday that the payments will be extended to eligible businesses until 28 March 2021. However, there are significant changes to the regime:
- Businesses must meet new and additional decline in turnover tests (based on actual GST turnover) to access payments in two new extension periods (28 September 2020 – 3 January 2021 and 4 January – 28 March 2021);
- A tiered system of payments will apply from 27 September 2020, where the amount paid will be based on an employee's average hours worked per week before 1 March 2020. Those working on average 20 hours per week or more would be entitled to the higher tier payments and other eligible employees entitled to the lower tier payments; and
- A staged reduction in the amount of payments – from 28 September 2020 to 3 January 2021 the higher tier payment will be $1,200 per fortnight, reducing to $1,000 per fortnight for 4 January to 28 March 2021, and the lower tier payment will be $750 per fortnight and $650 per fortnight for the same periods.
We highly recommend careful reading of this update in order to plan whether your business and employees may be eligible for JobKeeper 2.0.
We will post more information in relation to eligibility, enrolment and application once the details come to hand from the Treasury.
If you require any assistance in relation to JobKeeper 2.0 eligibility please do not hesitate to contact us.