Latest updates – JobKeeper

  • Extension of the JobKeeper Payment – The Government is extending the JobKeeper Payment by a further six months to March 2021. Support will be targeted to businesses and not-for-profits that continue to be significantly impacted by the coronavirus.  The payment rate will be reduced and a lower payment rate will be introduced for those who work fewer hours. Other eligibility rules remain unchanged. 
  • Changes for child care providers – The rule changes relating to JobKeeper payments for child care providers have now been confirmed. Eligibility for JobKeeper payments will stop from 20 July for employees of an approved provider of child care services where those employees whose ordinary duties are that they are engaged principally in the operation of the child care centre, and eligible business participants where the business entity is an approved provider of a child care service. Childcare providers need to ensure that they do not claim JobKeeper for employees and eligible business participants who are no longer eligible. You will not be reimbursed for payments made after JobKeeper Fortnight 8 (6 July to 19 July). The Australian Taxation Office (ATO) will provide more detail on the steps you need to take to stop receiving JobKeeper payments for your ineligible employees and business participants shortly.

What the JobKeeper payment is

The JobKeeper Payment is a scheme to support businesses significantly affected by the coronavirus to help keep more Australians in jobs. The JobKeeper Payment is administered by the Australian Taxation Office (ATO).

The JobKeeper Payment, which was originally due to run until 27 September 2020, will now continue to be available to eligible businesses (including the self-employed) and not-for-profits until 28 March 2021.

The payment rate of $1,500 per fortnight for eligible employees and business participants will be reduced to $1,200 per fortnight from 28 September 2020 and to $1,000 per fortnight from 4 January 2021. From 28 September 2020, lower payment rates will apply for employees and business participants that worked fewer than 20 hours per week.

From 28 September 2020, businesses and not-for-profits seeking to claim the JobKeeper Payment will be required to demonstrate that they have suffered an ongoing significant decline in turnover using actual GST turnover (rather than projected GST turnover).

From 28 September 2020, businesses and not-for-profits will be required to reassess their eligibility with reference to their actual GST turnover in the June and September quarters 2020. They will need to demonstrate that they have met the relevant decline in turnover test in both of those quarters to be eligible for the JobKeeper Payment from 28 September 2020 to 3 January 2021.

From 4 January 2021, businesses and not-for-profits will need to further reassess their turnover to be eligible for the JobKeeper Payment. They will need to demonstrate that they have met the relevant decline in turnover test with reference to their actual GST turnover in each of the June, September and December quarters 2020 to remain eligible for the JobKeeper Payment from 4 January 2021 to 28 March 2021.

To be eligible for JobKeeper Payments under the extension, businesses and not-for-profits will still need to demonstrate that they have experienced a decline in turnover of:

  • 50 per cent for those with an aggregated turnover of more than $1 billion
  • 30 per cent for those with an aggregated turnover of $1 billion or less

or

  • 15 per cent for Australian Charities and Not for profits Commission-registered charities (excluding schools and universities)

If a business or not-for-profit does not meet the additional turnover tests for the extension period, this does not affect their eligibility prior to 28 September 2020. The JobKeeper Payment will continue to remain open to new recipients, provided they meet the existing eligibility requirements and the additional turnover tests during the extension period. Other eligibility rules for businesses and not-for-profits and their employees remain unchanged.

Original Source: Here