The Government is extending the JobKeeper Payment by a further six months to 28 March 2021. Support will be targeted to businesses and not-for-profits that continue to be significantly impacted by the Coronavirus. Moving forward, the payment rate will be reduced and a lower payment rate will be introduced for those who work fewer hours. Other eligibility rules remain unchanged.
The current payment rate of $1,500 per fortnight for eligible employees and business participants will be reduced to $1,200 per fortnight from 28 September 2020. From 4th January 2021 it will be further reduced to $1,000 per fortnight. It will apply to employees working more than 20 hours per week.
From 28 September 2020, lower payment rates of $750 per fortnight will apply for employees and business participants that worked fewer than 20 hours per week.
Also from 28 September 2020, businesses and not-for-profits seeking to claim the JobKeeper Payment will be required to demonstrate that they have suffered an ongoing significant decline in turnover using actual GST turnover (rather than projected GST turnover). They will need to demonstrate that they have met the relevant decline in turnover test in both the June and September quarters to be eligible for the JobKeeper Payment from 28 September 2020 to 3 January 2021.
From 4 January 2021, businesses and not-for-profits 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. The payment will drop to $1000 per fortnight for employees working more than 20 hours per week, and $650 per fortnight for those working less than 20 hours per week.
To be eligible for JobKeeper Payments under the extension, businesses and not-for-profits will still need to demonstrate that they have experienced a decline in turnover of:
- 50 per cent for those with an aggregated turnover of more than $1 billion;
- 30 per cent for those with an aggregated turnover of $1 billion or less; or Economic Response to the Coronavirus – JobKeeper Extension Last updated: 21 July 2020 2
- 15 per cent for Australian Charities and Not for profits Commission-registered charities (excluding schools and universities).
The JobKeeper Payment will continue to remain open to new recipients, provided they meet the existing eligibility requirements and the additional turnover tests during the extension period.
The JobKeeper Payment will continue to be made by the ATO to employers in arrears. 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. This is called the wage condition.
More information is available on the Factsheet: