As you would be aware the Government has extended the Jobkeeper program from 28 September until 28 March 2021. Given the legislation associated with this extension has recently passed through parliament and given the 1st Jobkeeper program is quickly approaching the end, now is a good time to consider what the extension means and whether or not you are eligible.
As outlined in our blog when these changes were announced the eligibility conditions are tighter with respect to accessing the extended Jobkeeper.
Similarly, the payment amounts will be different under the extended Jobkeeper. We have provided a summary below. Please note our comments are a high-level summary only and should not be considered advice as these do not take into account your specific circumstances.
JobKeeper Extension ~ Employment Date
Previously an employee needed to have been employed before 1 March 2020 to be eligible for Jobkeeper. However, this has changed such that employees are eligible if employed before 1 July 2020.
- If a full-time employee was employed before 1 July 2020 or have been a long-term casual for 12 months as at 1 July 2020, they are now eligible for Jobkeeper.
- For students that are 18 years of age at 1 July 2020, they are now eligible subject to meeting the above point.
- Don't forget Jobkeeper applies on the basis that one in all in. Therefore, if an employee has become eligible due to these new rules then they need to be included in the numbers confirmed with the ATO.
- The date of 1 July 2020 is not only relevant for the extended Jobkeeper, it is also relevant for the existing Jobkeeper payments from 3 August. Therefore the confirmation that is provided to the ATO at start of September for the month of August needs to consider whether there are full-time employees that you employed between 1 March 2020 and 1 July 2020 that are now eligible, or casual employees that would not be considered to have reached the required 12 months.
- For the fortnights commencing on 3 and 17 August 2020, employers have until 31 August 2020 to meet the wage condition for new eligible employees under the 1 July eligibility test.
- For any new employees from 1 July 2020 your will need to prepare a new Employee Nomination Notice Form.
JobKeeper Extension ~ New Turnover Test
As noted, there is a new turnover test that now makes it harder to qualify for Jobkeeper.
Please note the following regarding this test:
- The new rules only apply after the first Jobkeeper ends on 28 September 2020. Therefore, if you have been eligible for the original Jobkeeper this has not changed.
- From 28 September you will need to pass the new turnover test. This broadly means you have a 30% decline in turnover for the September 2020 quarter.
- To then continue to be eligible after 3 January you would need to have a decline in turnover of 30% for the 31 December quarter. This would then take you eligible until 28 March 2021.
JobKeeper Extension ~ New Payment Amounts
As noted above the payment amounts will also be different under the extended Jobkeeper program. In summary these payments are as follows:
From 28/9/2020 to 3/1/2021
- $1,200 per fortnight if working more than 20 hours a week.
- $750 per fortnight if less than 20 hours.
From 4/1/2021 to 28/3/2021
- $1,000 per fortnight if working more than 20 hours a week.
- $650 per fortnight if less than 20 hours.
If more information becomes available, we will keep you informed.
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
Have you noticed our #FridayExpertTips... here's one that relates to #CoVID-19: Business Planning
"In times of crisis we often focus on ourselves and our own issues. However, in order to fully understand the long and short term impacts on your business, you have to understand the impact on those around you – your team, business partners, customers, industry, niche... and adjust accordingly."
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.