JobKeeper 2.0 Update - Here's What You Need To Know
WOW! 2020 certainly has been a tough year. Nine months in and parts of Australia are still experiencing lockdown, quarantine, and border restrictions, and millions of businesses continue to struggle with the economic impacts of this virus.
Thankfully, the Australian Government has announced an extension of the JobKeeper Payment until 28 March 2021. However, there will be changes to the original scheme that could impact you and your business. Here is what you need to know:
JobKeeper Extension
The JobKeeper 1.0 will remain as is until 27th September 2020. Then JobKeeper 2.0 will continue for a further six months until 28th March 2021.
Eligibility
From the 28th of September 2020, when JobKeeper 2.0 kicks in, if you’re a business wanting to claim JobKeeper payments you will be required to re-qualify your eligibility. You will need to provide evidence that you have met the relevant eligibility requirements for the September 2020 quarter. The primary eligibility for the extension is a 30% decline of actual turnover for September 2020 v September 2019 quarter.
Further measures around alternative tests (if you weren't trading in Sept 2019) will be available later. Once relayed by the Australian Taxation Office we will provide further updates.
You will then need to demonstrate your eligibility again in January 2021, by providing evidence that you have met the required decline in turnover for the December 2020 quarter.
Payment Rates
From 28th September 2020 to 3rd January 2021, payment rates will be reduced to $1200 per fortnight for those working 20 hours or more, and $750 per fortnight for those working 20 hours or less.
Then from 4th January 2021 to 28th March 2021, payment rates will be reduced to $1000 per fortnight for those working 20 hours or more, and $650 per fortnight for those working 20 hours or less.
The changes aim to better align the payment with the income of employees before the onset of the COVID-19 pandemic.
Action Required
You can visit the ATO website to work out eligibility for employers, employees and sole traders.
If you have any questions regarding the changes to JobKeeper, please feel free to reach out to us via our email or socials.
Stay safe!