The JobKeeper Payment will be extended by six months to 28 March 2021 and the temporary Coronavirus Supplement for those on income support will be extended until 31 December 2020.
The JobKeeper Payment has been instrumental in supporting job retention, maintaining employment links and business cash flow, as well as providing income support to eligible employees.
This extension will provide further support to significantly impacted businesses so more Australians can retain their jobs and continue to earn an income.
The JobKeeper Payment is currently due to finish on 27 September 2020, but will now remain available for eligible employers until 28 March 2021.
As the economy reopens the payment will be tapered in the December and March quarters to encourage businesses to adjust to the new environment, supporting a gradual transition to economic recovery, while ensuring those businesses who most need support continue to receive it.
A two-tiered payment will also be introduced from 28 September, to better align the payment with the incomes of employees before the onset of the COVID-19 pandemic. Employees who were employed for less than 20 hours a week on average in the four weekly pay periods ending before 1 March 2020 will receive the lower payment rate.
New JobKeeper Payment rates
JobKeeper Payment rates from 28 September 2020 to 28 March 2021:
- From 28 September 2020 to 3 January 2021, the payment rate will be $1,200 per fortnight for all eligible employees who, in the four weeks before 1 March 2020, were working in the business for 20 hours or more a week on average and for business participants who were actively engaged in the business for more than 20 hours per week.
And, $750 per fortnight for employees who were working in the business for less than 20 hours a week on average and business participants who were actively engaged in the business less than 20 hours per week in the same period.
- From 4 January 2021 to 28 March 2021, the payment rate will be $1,000 per fortnight for all eligible employees who in the four weeks before 1 March 2020, were working for 20 hours or more a week on average and for business participants who were actively engaged in the business for more than 20 hours per week.
And, $650 per fortnight for employees who were working for less than 20 hours a week on average and business participants who were actively engaged in the business for less than 20 hours per week in the same period.
Re-apply to remain on the JobKeeper
From 28 September 2020, businesses, and not-for-profits will be required to reassess their eligibility by reference to their actual June and September quarter turnovers to demonstrate that they have suffered an ongoing significant decline in turnover.
Organisations will need to demonstrate that they have experienced the relevant decline in turnover in both of those quarters to be eligible for the JobKeeper Payment in the December quarter.
Employers will need to again reassess their eligibility for the JobKeeper Payment for the March quarter. Employers will need to demonstrate that they have met the relevant decline in actual turnover in each of the previous three quarters ending on 31 December 2020 to remain eligible for the JobKeeper Payment in the March quarter 2021.
If they do not meet the turnover test in the extension period this does not affect their eligibility prior to 28 September 2020. The continuation of JobKeeper for these businesses will help support the economic recovery and provide them with sufficient time to adjust.
Can I get the JobKeeper now if I wasn’t eligible before?
The JobKeeper Payment will continue to remain open to new participants that meet the eligibility requirements.
Are you eligible for the JobKeeper extension?
To see if you qualify for the Jobkeeper extension, fill out the below form and an expert accountant will get in touch to review your business’ eligibility.
What do I need to do?
If you need assistance, please reach out to our friendly accountants on 1300 180 630 or if you would like us to give you a call, Book in your 30 minute consultation for $50 to get the answers you need today