The JobKeeper 2.0 legislation has just passed both houses of Parliament, and is now law (subject to the formality of Royal Assent). This legislation enables the Treasurer to draft a legislative instrument setting out the key changes to the scheme as follows:
Employer Eligibility:
From 28 September 2020, businesses and not-for-profits seeking to claim JobKeeper will be required to re-assess their eligibility for the JobKeeper extension with reference to their actual turnover in the September quarter 2020 (rather than the June and September quarters). Businesses and not-for-profits will need to demonstrate that they have met the relevant decline in turnover test in this quarter to be eligible for JobKeeper from 28 September 2020 to 3 January 2021.Businesses and not-for-profits will need to further reassess their eligibility in January 2021 for the period from 4 January to 28 March 2021.
Businesses and not-for-profits will need to demonstrate that they have met the relevant decline in turnover test in the December quarter 2020 (rather than each of the June, September and December quarters) to remain eligible for the period to 28 March 2021 (the March quarter).
Payment Rates:
The payment rates have been pared back and will now depend upon the hours worked by an employee.
From 28 September 2020 to 3 January 2021, the JobKeeper Payment rates will be:
•$1,200 per fortnight for all eligible employees who were working in the business or not for-profit for 20 hours or more a week on average in the four weeks of pay periods before either 1 March 2020 or 1 July 2020, and for eligible business participants who were actively engaged in the business for 20 hours or more per week on average; and
•$750 per fortnight for other eligible employees and business participants (less than 20 hours)
From 4 January 2021 to 28 March 2021, the JobKeeper Payment rates will be:
•$1,000 per fortnight for all eligible employees who were working in the business or not for-profit for 20 hours or more a week on average in the four weeks of pay periods before either 1 March 2020 or 1 July 2020, and for business participants who were actively engaged in the business for 20 hours or more per week on average; and
•$650 per fortnight for other eligible employees and business participants (less than 20 hours)
Employee Eligibility
•Employees that meet the eligibility requirements can now be nominated by a new employer if their original employment with a JobKeeper employer ended before 1 July 2020
•As of 3 August 2020, the key date for assessing employee eligibility is now 1 July 2020 (not 1 March 2020)
Action Required?
While the official details for the JobKeeper extension are not yet available, the ATO this week indicated that employers will not need to re-enrol if they were already enrolled in JobKeeper prior to 28 September.
Source: Australian Bookkeepers Network 10/09/2020