Today the Federal government has announced the much anticipated changes to the JobKeeper scheme. The original scheme, where eligible employers are reimbursed for payments of $1,500 per fortnight to all eligible employees, was due to finish on 27 September 2020.
The scheme has been extended to March 2021, on a tiered basis. There are additional turnover tests to be met by businesses to continue to receive JobKeeper payments beyond 27 September 2020.
From 28 September 2020 to 3 January 2021, payments will be reduced from $1,500 for all eligible employees to $1,200 per fortnight for eligible full-time employees and $750 per fortnight for eligible part-time employees. A full-time employee is someone working at least 20 hours per week.
Employing businesses will need to demonstrate a 30% fall in turnover for the June 2020 quarter compared to the June 2019 quarter, and for the September 2020 quarter compared to the September 2019 quarter, to be eligible for this phase of JobKeeper payments.
Business with over $1 billion turnover will need to demonstrate a 50% fall.
For the updated turnover eligibility announced on 7 August 2020 read our article JobKeeper 2.0 - Changes to Eligibility.
From 4 January to 28 March 2021, payments will be reduced further, down to $1,000 per fortnight for eligible full-time employees and $650 per fortnight for eligible part-time employees.
To be eligible for the phase, businesses will need demonstrate a continued 30% or 50% fall in turnover for the December 2020 quarter compared to the December 2019 quarter.
Part-time employees receiving the lower JobKeeper payments may also be eligible for partial JobSeeker payments.
The COVID-19 supplement of $550 per fortnight will be reduced to $250 per fortnight, from 1 October through to 31 December 2020. This will reduce the maximum Newstart allowance down from around $1,100 to $800.
At this stage the supplement is only scheduled to be paid until the end of December, but Scott Morrison has indicated it will likely be extended until the end of March 2021.
The assets test will be reintroduced from 1 October, which will limit eligibility for JobSeeker payments.
If you would like to discuss the above details, please take a moment to talk with us to gain some clear direction. There is no cost involved in an initial chat with us about your business to see if we are the right fit for you.
Wishing you every success!