The Prime Minister recently announced a number of changes to JobKeeper that may affect you if you are currently receiving the payment. The great news is that the program has been extended for a further 6 months out from 28 September 2020 to 28 March 2021 but some of the eligibility criteria have changed. This means that some may no longer be eligible to receive the payment and may need to move across to Jobseeker, or make some significant business decisions in light of the changes.
According to the Treasury website, treasury.gov.au, "...from the 28th September 2020, eligibility for the JobKeeper Payment will be based on actual turnover in the relevant periods, the payments will be stepped down and paid at two rates." Business & NFP Eligibility (from 28.9.20)
To be eligible for JobKeeper, businesses (with an aggregated turnover of $1 billion or less) will need to demonstrate that their actual turnover for both the June 2020 quarter and the September 2020 quarter has declined by more than 30% compared with their actual turnover for the June 2019 quarter and the September 2019 quarter.
For Australian Charities and NFP Commission-registered charities (excluding schools and universities), the test is 15%.
Businesses and NFP will need to assess their eligibility for JobKeeper again in January 2021.
Payments (from 28.9.20)
The payment rate of $1,500 per fortnight for most eligible employees and businesses will be reduced to $1,200 per fortnight.
Employees and business participants working fewer than 20 hours per week will receive a reduced payment of $750.
Rates will change again in January.
It's worth noting that;
Those not meeting the new JobKeeper eligibility criteria remain eligible for JobKeeper until 28 September 2020.
JobKeeper remains open to new applicants provided they meet the new eligibility criteria.
Alternative tests will be available to businesses for which comparing turnover with the prior year does not provide an accurate measure of their decline in turnover for each period.
Other JobKeeper eligibility criteria have not changed.
If you're a business already receiving JobKeeper and need clarification about your ongoing eligibility, feel free to get in touch with your Rowe Partners accountant to discuss. If you're a new business or NFP applicant for JobKeeper we can also work together to ascertain your eligibility. We're standing by ready to help. Call 1800 04 7693 to make an appointment.