As the current JobKeeper scheme will come to an end as of 27 September 2020, and the Australian economy is still being greatly impacted by the second wave of COVID-19, the Morrison government has announced on 21 July an extension of the program, i.e. JobKeeper 2.0 to the period from 28 September 2020 to 28 March 2021.
How Is It Different to the Current Scheme?
The extended JobKeeper scheme is different from the current one in several ways.
Firstly, it compares actual turnover (as opposed to projected turnover) for the September and December 2020 quarters to the same period in 2019 in working out percentage of decline.
The payments have also reduced from the current $1,500 per fortnight, to either $1,200 or $750 for the December 2020 quarter, and $1,000 or $650 for the March 2021 quarter. Which one of the two tiers of payment amounts do you get will depend on working hours in the month of February 2020.
The New Eligibility Requirements
The only criteria that has changed in JobKeeper 2.0 is the decline in turnover test.
To qualify for JobKeeper payment for 28 September 2020 to 3 January 2021, the business needs to compare its actual turnover for the September 2020 quarter to the corresponding quarter in 2019 and demonstrate 15%/30%/50% decline.
To qualify for JobKeeper payment for 4 January 2021 to 28 March 2021, the business needs to compare its actual turnover for the December 2020 quarter to the corresponding quarter in 2019 and demonstrate 15%/30%/50% decline.
The actual turnover reported in business activity statements can generally be used to determine eligibility.
The Two-Tier Payment System
Instead of getting a flat $1,500 per fortnight in the existing scheme, the new scheme will have two tiers of payment depending on the average weekly working hours in the month of February 2020. Eligible employees and business participants who worked for 20 or more hours per week in February 2020 will get the full rate and the rest will get the partial rate. The table below summarises payments for the two tiers.
It is essential to keep record to substantiation working hours, especially for eligible business participants as it is trickier to work out number of hours business owners put in.
Unusual Situations
Special rules for unusual situations are not available at the moment. This could include situations such as when the business only started trading after September 2019, or the working hours in the month of February 2020 are not the employee/business participant’s typical working hours.
Changes to the Current JobKeeper Program
A change to the current JobKeeper Program that is worth noting is that from 3 August 2020, people who were employed as of 1 July 2020 (as opposed to 1 March 2020 required previously) who have satisfied other requirements are eligible to receive the payment, too.
This could include employees who were employed after 1 March 2020, or the ones employed before 1 March 2020 but not eligible at that time and became eligible before 2 August. For these employees, the employers must satisfy the wage condition before 31 August 2020 to be eligible for the payment for the two fortnights commencing 3 August 2020.
It is important to note that JobKeeper 2.0 is not yet legislated and all information provided is based on government guidance available at the time of writing.
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