JobKeeper Extended Until March 2021!!
MB+M Business Services team brings some good news to those on the JobKeeper program. The government has announced that JobKeeper Extended Until March 2021, and the current system will remain unchanged until 27 September 2020 as planned. It will provide $1,500 per fortnight for employees and eligible business participants.
However, from 28 September the changes will apply.
There are several amendments that business owners need to be aware of, including different tiers of payment that apply over two separate time frames, as well as changed eligibility tests.
This means that some businesses receiving JobKeeper will no longer be eligible after 28 September, and others will continue to be eligible but will receive less subsidy from the government. It also means that some employees will now become eligible for JobKeeper.
Employee and Business Participant Eligibility
The ATO has amended the reference period for employee eligibility to allow more employees to become eligible for the JobKeeper payment.
The number of hours worked per week during the reference period governs the payment tier the worker will qualify for. Businesses can reference the four weeks prior to either 1 March 2020 OR 1 July 2020. The period with the greater hours should be used as the reference period.
Updated employee eligibility details are available at ATO Eligible employees webpage. There are no changes to the eligibility criteria for business participants and sole traders.
New Rates for 28 September 2020 to 3 January 2021
- $1,200 per fortnight – this rate applies to eligible employees and business participants who worked 20 hours or more per week in the reference period.
- $750 per fortnight – this rate applies to employees and business participants who worked less than 20 hours per week in the reference period.
New Rates for 3 January 2021 to 28 March 2021
- $1,000 per fortnight – this rate applies to eligible employees and business participants who worked 20 hours or more per week in the reference period.
- $650 per fortnight – this rate applies to employees and business participants who worked less than 20 hours per week in the reference period.
Business Eligibility Changes
To continue to receive JobKeeper payments, ATO will require businesses to prove an actual reduction in turnover of 30% or more for the September quarter to continue to receive the subsidy from 28 September 2020 to 3 January 2021.
ATO will then require businesses to satisfy again a reduction in turnover test for the December quarter to receive the subsidy from 4 January 2021 to 28 March 2021.
Businesses that have not satisfied the reduction in turnover tests in previous months can still enter the system any time upon meeting the eligibility requirements.
Plan Now for the Reduced Rates
Although we have another couple of months before the changes apply, now is the time to commence planning for the reduced JobKeeper rates, both for employees and business participants.
It will also be important to complete accounts for September quickly, to determine whether your business will continue to be eligible for JobKeeper for the following quarter.
Talk to us to help assess your eligibility for remaining in the system beyond September 2020. We can also help you understand how the changes will affect your business operations and costs, and to update cash flow plans and budgets. Call 03 5821 9177 and speak with one of MB+M’s expert Business Services team.
- The following link provides details on the Federal government’s financial support program “Economic Response to the Coronavirus” including JobKeeper.
- Previous video: JobKeeper Update – 14 Aug 2020
- Previous video: JobKeeper Update – 21 July 2020
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