On 21 July 2020, the Government announced an extension of the JobKeeper Payment until 28 March 2021 targeting those employers who continue to be significantly impacted by the Coronavirus.
When the JobKeeper package was originally announced, the Government said that affected employers will be able to claim a fortnightly payment of $1,500 per eligible employee from 30 March 2020, for a maximum period of 6 months up to 28 September 2020.
However, in order to ensure the scheme’s efficiency the Government decided to offer an extension. From 28 September 2020, the JobKeeper Payment will be targeted at employers that continue to be significantly impacted. The payment rates will be stepped-down and two tiers of payment will be introduced.
The existing JobKeeper Payment will remain in place until 27 September 2020. However, from 28 September 2020, employers seeking to claim JobKeeper Payments will be required to reassess their eligibility with reference to their actual turnover.
The Government also announced an extension of the Loan Scheme for small and medium-sized businesses struggling to recover from the economic crisis with part-guaranteed loans of up to $1 million. The Loan Scheme originally allowed for three year loans of up to $250,000, while the new scheme will be extended to five years and will begin on 1 October 2020 until 30 June 2021.
JobKeeper Payment ~ reassessment of eligibility
If you are currently receiving the JobKeeper Payment, it remains unchanged and available until 27 September 2020. However, from 28 September 2020, employers seeking to claim JobKeeper Payments will be required to reassess their eligibility for the JobKeeper extension with reference to their actual turnover in the June and September quarters 2020.
- First reassessment – for the period from 28 September 2020 to 3 January 2021
Organisations will need to demonstrate that they have met the relevant continuing decline at 30% or more in turnover in both of those quarters to be eligible for JobKeeper from 28 September 2020 to 3 January 2021.
- Second reassessment – for the period from 4 January 2021 to 28 March 2021
Organisations will need to further reassess their eligibility in January 2021 for the period from 4 January to 28 March 2021. Organisations will need to demonstrate that they have met the relevant continuing decline in turnover test in each of the previous three quarters to remain eligible for the March 2021 quarter.
The JobKeeper extension will be available to qualifying businesses from 28 September 2020 until 28 March 2021.
*Information about the operation of the JobKeeper Payment until 27 September 2020 is available on the ATO website.
JobKeeper Payment ~ reduction of payment
The Rules confirm that employers (including not-for-profits) will be eligible for the subsidy if, at the time of applying:
- The first tier – for the period from 28 September 2020 to 3 January 2021
From 28 September 2020 to 3 January 2021, the payment rate will be $1,200 per fortnight for all eligible employees who, in the four weeks before 1 March 2020, were working in the business for 20 hours or more a week on average and for business participants who were actively engaged in the business for more than 20 hours per week during the month of February 2020. $750 per fortnight will apply to employees and business participant actively working in the business for less than 20 hours per week.
- The second tier – for the period from 4 January 2021 to 28 March 2021
From 4 January 2021 to 28 March 2021, the payment rate will be $1,000 per fortnight for all eligible employees who, in the four weeks before 1 March 2020, were working in the business for 20 hours or more a week on average and for business participants who were actively engaged in the business for more than 20 hours per week during the month of February 2020. $650 per fortnight will apply to employees and business participant actively working in the business for less than 20 hours per week.
*For further Information you can access the JobKeeper Payment extension fact sheet here.
The Coronavirus SME Guarantee Scheme extension ~ part-guaranteed loans of up to $1 million
On Thursday, 16 July 2020 the Government announced an extension of the loan scheme. They will offer small and medium-sized businesses struggling to recover from the economic crisis part-guaranteed loans of up to $1 million.
The scheme will have the following features:
- low interest rate
- 5 years instead of 3 years
- 50% Government guarantee
The original scheme allowed for small businesses to borrow $250,00 unsecured with the Government as a guarantor for 50% of the loan, with repayments not required for six months. The scheme originally allowed for three-year loans, but the new scheme will be extended to five years and will begin on 1 October 2020 and will be made available until 30 June 2021.
Whilst $40 billion had been committed to the scheme announced in the second stimulus, only 15,600 business loans worth $1.5 billion have been issued.
Azure Group centres of Excellence
To manage the ongoing technical issues for all of our clients including the JobKeeper eligibility and payment plus other Stimulus measures and the Fair Work changes Azure Group have established the following two centres of excellence:
- COVID-19 Stimulus Centre of Excellence; and
- Fair Work Centre of Excellence.
Each of the above centres of excellence has a dedicated team of technical specialists. If you have any specific questions about these measures please contact our centres of excellence via email: email@example.com
You can still Raise Capital in 2020, published July 08, 2020
Did you apply for the NSW $3,000 Small Business Recovery Grant, published July 07, 2020
Things to consider when withdrawing Super before and after June 30, published June 26, 2020
Consider your timing when paying Bonuses to Employees, published June 25, 2020
How will COVID-19 affect your End of Financial Year Tax return?, published June 15, 2020
Is your business Tax ready for EOFY?, published June 11, 2020
COVID-19: 5 Steps Plan to surviving the next 6 month as a business,published June 02, 2020
COVID-19: How to motivate your team while working remotely?, published May 18, 2020
Expanding globally during COVID-19: Risky business or perfect timing?, published May 07, 2020
Cashflow is a lifeblood of your Business, especially during a pandemic such as Coronavirus, published April 22, 2020
Finding opportunities in a crisis and how to recover on the other side of COVID-19?, published April 20, 2020
COVID-19: What does 'Standing Down my team' mean to my Business?,published April 16, 2020
Working from home during Coronavirus: What expenses are Tax Deductible?, published April 9, 2020
COVID-19: EMDG extra funding of $49.8 million to help Exporters, published April 7, 2020
Startups and Scaleups: R&D Tax Incentive FY2019 deadline extended due to Coronavirus, published April 6, 2020
What is the difference between JobSeeker and JobKeeper? Do you know what you're eligible for?, published April 2, 2020
Should you do Business Planning during CoVID-19?, published 27 Mar, 2020
A second CoVID-19 Stimulus for Businesses, published Mar 24, 2020
Financial relief for business experiencing difficulty due to CoVID-19 and State Government Support, published Mar 21, 2020
What are the benefits of Coronavirus Stimulus Package for businesses?, published Mar 13, 2020
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This information is accurate on the day it’s published and is subject to change as the situation around Coronavirus (COVID-19) evolves. Our conclusions may not be valid if there is any change in those facts, circumstances and assumptions. Accordingly, neither Azure Group Pty Ltd nor any member or employee of Azure Group, undertakes responsibility arising in any way whatsoever to any persons in respect of this alert or any error or omissions herein, arising through negligence or otherwise howsoever caused.