JobKeeper Subsidy Extension - What you need to know!
On the 21st of July 2020 the Government announced that the JobKeeper Subsidy will be extended to the 28th of March 2021 for eligible businesses. Please note below important changes to the eligibility requirements and payment rates. Eligibility Requirements To be eligible for JobKeeper Payments under the extension, businesses and not-for-profits will need to demonstrate an ongoing decline in turnover of 30 per cent or more for those with an aggregated turnover of $1 billion or less.
From 28 September 2020 to 3 January 2021, businesses will be required to demonstrate that the entity has suffered an ongoing significant decline in turnover using actual GST turnover in both the June 2020 and September 2020 quarters (rather than projected GST turnover).
From 4 January 2021 to 28 March 2021, businesses will be required to demonstrate that the entity has suffered an ongoing significant decline in turnover using actual GST turnover in the June 2020, September 2020 and December 2020 quarters (rather than projected GST turnover).
Please also note:
The eligibility rules for employees remain unchanged.
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 subsidy will continue to remain open to new recipients, provided they meet the existing eligibility requirements and the additional turnover tests during the extension period.
Payment Rates
From 28 September 2020 to 3 January 2021, the JobKeeper payment rate will be reduced to $1,200 per fortnight. This applies to eligible employees who, in the four weeks of pay periods before 1 March 2020, were working in the business for 20 hours or more a week on average, and for eligible business participants who were actively engaged in the business for 20 hours or more per week on average in the month of February 2020. The JobKeeper rate for other eligible employees and business participants will be $750 per fortnight.
From 4 January 2021 to 28 March 2021, the JobKeeper payment rate will be further reduced to $1,000 per fortnight. This applies to eligible employees who, in the four weeks of pay periods before 1 March 2020, were working in the business or not-for-profit for 20 hours or more a week on average and for business participants who were actively engaged in the business for 20 hours or more per week on average in the month of February 2020. The JobKeeper rate for other eligible employees and business participants will be $650 per fortnight.
The JobKeeper payment extension is subject to the passage of law.
If you would like Transcend Accounting to help you with the JobKeeper process, please send an email to admin@transcendaccounting.com.au and we will call you to schedule a phone appointment.
