The extended JobKeeper Payment rates

August 12, 2020 | lbwadvisory

From 28 September 2020 to 3 January 2021, the JobKeeper Payment rates will be:

$1,200 per fortnight for all eligible employees who, in the four weeks of pay periods before 1 March 2020, were working in the business or not-for-profit for 20 hours or more a week on average, and for eligible business participants who were actively engaged in the business for 20 hours or more per week on average in the month of February 2020; and

$750 per fortnight for other eligible employees and business participants.

From 4 January 2021 to 28 March 2021, the JobKeeper Payment rates will be:

$1,000 per fortnight for all eligible employees who, in the four weeks of pay periods before 1 March 2020, were working in the business or not-for-profit for 20 hours or more a week on average and for business participants who were actively engaged in the business for 20 hours or more per week on average in the month of February 2020; and

$650 per fortnight for other eligible employees and business participants.

Businesses and not-for-profits will be required to nominate which payment rate they are claiming for each of their eligible employees (or business participants).

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 referred to as the wage condition.

Changes to the eligible employee start date

Employees can now be eligible employees if they were employed before 1 July 2020 (for permanent employees) or for the 12 months proceeding July 2020 for long term casuals. This is a significant change for businesses that have hired staff since the beginning of COVID-19, or had long term casuals who had just missed out with the initial date being set in March.

Additional new turnover tests

In order to be eligible for the JobKeeper Payment after 27 September 2020, businesses and not-for-profits will have to meet a further decline in turnover test for each of the two periods of extension, as well as meeting the other existing eligibility requirements for the JobKeeper Payment.  In order to be eligible for the first JobKeeper Payment extension period of 28 September 2020 to 3 January 2021, businesses and not-for-profits will need to demonstrate that their actual GST turnover has significantly fallen in the the September 2020 quarter (July, August, September) relative to the September quarter in 2019.

In order to be eligible for the second JobKeeper Payment extension period of 4 January 2021 to 28 March 2021, businesses and not-for-profits will again need to demonstrate that their actual GST turnover has significantly fallen in each of the September and December 2020 quarters relative to the comparable periods in 2019.

Businesses and not-for-profits will generally be able to assess eligibility based on details reported in the Business Activity Statement (BAS).

As with the first phase of the JobKeeper scheme, a number of “alternative tests” will be available to account unusual factors, such as businesses not having a comparable 2019 period because they are new to business, or significant business growth in the 12 months prior to the test period. More details to come in regards to the alternative tests for JobKeeper 2.0.

Editor:  Please contact our office if you wish to discuss your business’ eligibility for JobKeeper payments.