Extension of the JobKeeper Payment

The Australian government has announced the JobKeeper Payment scheme will be extended for eligible employers by six months until 28 March 2021. However, from 28 September 2020, eligibility will be restricted, and payments reduced.

Changes to eligibility

Employers who wish to participate in the extended JobKeeper scheme will need to requalify.

To be eligible for the first JobKeeper Payment extension period (28 September 2020 to 3 January 2021), employers must demonstrate that their actual GST turnover has significantly fallen in both the June quarter 2020 (April, May and June) and the September quarter 2020 (July, August, September) relative to comparable periods (generally the corresponding quarters in 2019).

To be eligible for the second extension period (4 January 2021 to 28 March 2021), employers must demonstrate that their actual GST turnover has significantly fallen in each of the June, September and December 2020 quarters relative to comparable periods (generally the corresponding quarters in 2019).

Regarding the turnover test, employers will need to demonstrate they have experienced:

• a 30% decline (for an aggregated turnover of $1 billion or less),
• a 50% decline (for an aggregated turnover of more than $1 billion), or
• a 15% decline (for Australian Charities and Not-for-profits Commission-registered charities)

in their actual GST turnover in the relevant quarters to be eligible.

See the Treasury website for more information on the turnover test. An employer’s eligibility (or ineligibility) for the extension period does not affect their eligibility prior to 28 September 2020. Further, the JobKeeper Payment is open to new recipients who qualify. Other eligibility rules continue unchanged.

Changes to the JobKeeper Payment

* Hours worked based on hours worked in February 2020.

From 28 September 2020 to 28 March 2021, the existing JobKeeper Payment rates will be reduced and paid at the above rates.

Employees who worked at least 20 hours per week on average during February 2020 will receive the higher rate. Employees who worked less than 20 hours per week on average during February 2020 will receive the lower rate.

Employers will be required to nominate which rate they are claiming for each of their eligible employees.

The Commissioner of Taxation will have discretion to set out alternative tests to establish eligibility (for example, where it is not appropriate to compare actual turnover in a quarter in 2020 with that in 2019, or where an employee’s hours were not usual during February 2020).

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Industry Legal Group can provide clients with information and advice on workplace relations and employment law matters. Please contact Industry Legal Group on 1300 736 435 or mail@industrylegalgroup.com.au if you have any question relating to this article or to discuss any issues that arise in your business.

This article is intended for general information purposes only and should not be regarded as legal advice. Please contact Industry Legal Group if you require any legal advice.

27 July 2020