Extension to JobKeeper Payments

On 21 July 2020, the Government announced that it is extending JobKeeper Payments for a further 6 months until 28 March 2021 and is targeting those businesses who continue to be significantly impacted by the Coronavirus.

What is the Relief?

The existing current fortnightly payment rate of $1,500 will remain in place until 27 September 2020 where it will then reduce to:

• $1,200 per fortnight from 28 September 2020 until 3 January 2021
• $1,000 per fortnight from 4 January 2021 until 28 March 2021

For employees and business participants who work less than an average of 20 hours per week in February 2020, the following payment will apply:

• $750 per fortnight from 28 September 2020 until 3 January 2021
• $650 per fortnight from 4 January 2021 until 28 March 2021

Who is Eligible?

Eligible businesses must have been carrying on a business in Australia or were a not-for-profit organisation in Australia on 1 March 2020 and demonstrate the following decline in turnover (which remains the same as the existing rules):

• 50% for those with an aggregated turnover of more than $1 billion
• 30% for those with an aggregated turnover of $1 billion or less
• 15% for not-for-profit entities (excluding schools and universities).

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). From 28 September 2020, the JobKeeper Payment will be targeted to businesses that have been most significantly impacted, the payment rates will be stepped down and two tiers of payment will be introduced. 

Period 2 – 28 September 2020 until 3 January 2021

Business will need to reassess their eligibility with reference to their actual GST turnover in the June 2020 and September 2020 quarters. They must demonstrate a decline in turnover for both quarters compared to the same quarters in the previous year to be eligible.

Period 3 – 4 January 2021 until 28 March 2021

Business will need to reassess their eligibility again with reference to their actual GST turnover in the June 2020, September 2020 and December 2020 quarters. They must demonstrate a decline in turnover for all 3 quarters compared to the same quarters in the previous year to be eligible.
Please contact your MNH Advisory Services team member if you would like any advice or assistance on the JobKeeper Payment Scheme. We are able to submit and enrol on our client’s behalf through our ATO Online Services for Tax Agents.

Resources
https://treasury.gov.au/sites/default/files/2020-07/Fact_sheet-JobKeeper_Payment_extension_0.pdf

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