Extension of the JobKeeper Payment

Jul 27, 2020Articles, COVID-19, Workplace Relations Law

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.

In order to be eligible for the first JobKeeper Payment extension period of 28 September 2020 to 3 January 2021, employers will need to 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).

In order to be eligible for the second JobKeeper Payment extension period of 4 January 2021 to 28 March 2021, employers will again need to 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 percent decline (for an aggregated turnover of $1 billion or less) or a 50 percent decline (for an aggregated turnover of more than $1 billion) or a 15 percent decline (for Australian Charities and Not for profit 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

Date Rate per fortnight (20+hrs per week*) Rate per fortnight (Other)
28 September 2020 to 3 January 2021 $1,200 $750
4 January 2021 to 28 March 2021 $1,000 $650
* 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 larger amount and employees who worked less than 20 hours per week on average during February 2020 will receive the lesser amount.

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 actual turnover in a quarter in 2019 or where an employee’s hours were not usual during the February 2020 reference period).

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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.