With recent changes announced by the Government for the ongoing JobKeeper payment scheme, businesses are gearing up for another six months of support, with JobKeeper 2.0 now extended until 28 March 2021.
And with COVID-19 leaving many businesses with a large amount of uncertainty, it is important that businesses, business owners and employees understand what these changes mean for them and their future.
JobKeeper, what has changed?
To date, more than 3.5m workers across 960,000 businesses have received the $30 billion+ JobKeeper scheme, allowing employees to take home $1500 per fortnight before tax.
From September 28, what will change for my business?
Two-tier payment begins based on pre-COVID hours
$1200 a fortnight for workers on 20 hours or more
$750 a fortnight for workers on less than 20 hours
From January 4, what will change for my business?
Top tier payment reduced to $1000
Second tier payment reduced to $650
What do the changes to JobKeeper mean for my business?
If you are a business owner or employer, there will be several things that you'll need to prepare for come 28 September when the new changes roll out.
The good news is that these changes will be rolled out progressively, meaning we can help support you with these new changes to eligibility requirements to ensure you're getting the right support that you're entitled to.
What are the main changes to JobKeeper that will impact my business?
Businesses will now be subject to ongoing eligibility testing, which will be based on comparison of quarterly turnover, instead of a once-off test with the ATO.
The rate of pay required to be paid to eligible employees under the scheme
How much does my business turnover need to be impacted in order to be eligible?
Eligible businesses must meet the following rates of decline in turnover in order to be eligible for JobKeeper 2.0;
Eligibility Period 1 (October - December 2020)
Decline in turnover test period: April - June & July - September 2020
The relevant decline in turnover test must be satisfied in BOTH quarters.
Eligibility Period 2 (January - March 2021)
Decline in turnover test period: April – June 2020, July – September 2020 & October – December 2020
The relevant decline in turnover test must be satisfied in ALL three quarters.
Related: What do the JobSeeker changes mean for my business?
What are the changes to the JobKeeper minimum wage conditions?
To ensure the longevity of this program, and the right support going to the right people, employees will now receive support based on their type of employment as opposed to a flat rate of support.
Employees working >20 hours per week*
From 28 September 2020 – 3 January 2021, these employees will receive $1,200 per fortnight (before tax)
From 4 January 2021 – 28 March 2021, these employees will receive $1,000 per fortnight (before tax)
Employees working <20 hours per week*
From 28 September 2020 – 3 January 2021, these employees will receive $750 per fortnight (before tax)
From 4 January 2021 – 28 March 2021, these employees will receive $650 per fortnight (before tax)
* The 20-hour work test refers to the month of February 2020 (with some Commissioner discretion).
We're here to help during these uncertain times. If you need help in ensuring your business receives the right support and stays up to date on important changes, give our team a call on 1300 360 867 to get started today.