The government has today announced an extension to the JobKeeper Payment, as well as changed business eligibility terms.

Extension period

The scheme is being extended beyond the original date of 27 September 2020 to 28 March 2021.

Changes to the payment

• For the October-December Quarter there will be a 2-tier entitlement:
  • $1200 per fortnight for employees on 20+ hours per week Pre-COVID-19
  • $750 per fortnight for employees on less than 20 hours Pre-COVID-19

• For the January-March Quarter there will be reduced 2-tier entitlement
  • $1000 per fortnight for employees on 20+ hours per week Pre-COVID-19
  • $650 per fortnight for employees on less than 20 hours Pre-COVID-19

Changes to eligibility

Turnover tests will be reapplied for each quarter:

• For the December Quarter, the turnover needs to have dropped in both the June and September quarters.
• For the March quarter turnover needs to have dropped in each of the June / September / December Quarters.

The current structure of $1,500 per fortnight per employee for businesses experiencing a 30% downturn (15% for Non-profits, 50% for businesses with a turnover of more than $1 billion) will continue until 27 September.

The Prime Minister described the need for the changes to target businesses and workers under sustained pressure due to COVID-19 and to wean businesses off government support. The Treasurer is due to provide an economic update this Thursday 23 July. We will be in touch with any relevant information that impacts business and workers.

With this new information, businesses must plan their financial and cashflow position for each upcoming quarter.

For more information or support with JobKeeper, contact us on mail@adviceco.com.au or 02 4320 0500 or check out the Treasury Fact Sheet.