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Changes to JobKeeper – August 2020

By admin In Business, COVID-19, Employment Law   

Article By: Joey Tass, Lawyer Cappello Rowe Lawyers Sydney

 

The Federal Government has just announced that it will extend JobKeeper until March 2021, in a revised format. Some key takeaways include the following:

Payment amount 

  • From 28 September 2020 to 3 January 2021, the JobKeeper wage subsidy will be reduced from:
    • $1,500 to $1,200 per fortnight for all eligible employees or business participants that work on average more than 20 hours per week;
    • $750 per fortnight for all eligible employees and business participants that work on average less than 20 hours per week.
  • From 4 January 2021 to 28 March 2021, the JobKeeper wage subsidy will be further reduced to:
    • $1,000 per fortnight for all eligible employees or business participants that work on average more than 20 hours per week;
    • $650 per fortnight for all eligible employees and business participants that work on average less than 20 hours per week.

 

Decline in turnover test

  • Businesses will still be required to demonstrate the current reduction in turnover, being:
    • 30% for businesses with turnover of $1 billion or less;
    • 50% for businesses with turnover of more than $1 billion;
    • 15% for Australian charities and not for profit commission, other than universities and non-government school.
  • However, businesses will now require to demonstrate that they have suffered an ongoing significant decline in turnover using actual GST turnover only, rather than projected GST turnover.
  • From 28 September 2020 to 3 January 2021, businesses will be required to show an actual decline in turnover for the June and September quarters 2020 to remain eligible.
  • From 4 January 2021 to 28 March 2021, businesses will be required to show an actual decline in turnover for the June 2020, September 2020 and December 2020 quarters to remain eligible.

 

The eligibility rules for employees remains unchanged.

For more information, please see the Government fact sheet about the JobKeeper changes through the following link – https://treasury.gov.au/sites/default/files/2020-07/Fact_sheet-JobKeeper_Payment_extension.pdf

If you have any queries, please feel free to contact us on 02 8325 1520 or alternatively email us at info@cappellorowe.com.au.

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