Modified JobKeeper payment
The JobKeeper payment, which was originally due to expire on 27 September 2020, will now continue until 28 March 2021.
From 28 September 2020, the payment rate of $1,500 per fortnight for eligible employees and business participants will be reduced as set out below.
|28 September 2020 – 3 January 2021||4 January 2021 – 28 March 2021|
|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 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||$1,200 p/fortnight||$1,000 p/fortnight|
|All other eligible employees and business participants||$750 p/fortnight||$650 p/fortnight|
Businesses and not-for-profits will be required to nominate which payment rate they are claiming for each eligible employee or business participant.
Where an employee’s or business participant’s hours were not usual during the February 2020 reference period (for example, the employee was on leave), the Commissioner of Taxation can provide alternative tests.
We can also expect guidance from the ATO where the employee was paid in non-weekly or non-fortnightly pay periods and for other circumstances the general rules do not cover.
The eligibility rules for employees remain unchanged.
Modified turnover test
For the period 28 September 2020 to 3 January 2021, businesses and not-for-profits will need to demonstrate that their actual GST turnover has significantly fallen in the both the June quarter 2020 and the September quarter 2020 relative to comparable periods (generally the corresponding quarters in 2019).
For the period 4 January 2021 to 28 March 2021, businesses and not-for-profits will again need to demonstrate that their actual GST turnover has significantly fallen in each of the June, September and December 2020 quarters relative to comparable periods (generally the corresponding quarters in 2019).
Again, the Commissioner of Taxation will have discretion to set out alternative tests in specific circumstances.
The required decline in turnover remains the same:
- 50% for those with an aggregated turnover of more than $1 billion;
- 30% for those with an aggregated turnover of $1 billion or less; or
- 15% for Australian Charities and Not-for-profits Commission-registered charities (excluding schools and universities).
If you would like to discuss this further and the implications for your business please contact our Employment + Workplace Relations Partner, Erin Lynch.
Erin Lynch, Partner
M +61 477 330 202