Menu
 

JobKeeper Update: What's Changing for You?

August 2020

Changes to the Jobkeeper scheme start from 28 September, with new eligibility criteria in play.

JobKeeper remains a lifeline for many businesses that have been impacted by the economic downturn, as we near the six month mark of stimulus support for business.

The Government announced additional changes to its JobKeeper scheme, including the expansion to include employees that missed out on JobKeeper because they were not employed on 1 March 2020.

How has Jobkeeper changed?

Provided they meet the eligibility requirements, the proposed changed would enable employees employed from 1 July 2020 to receive JobKeeper payments starting 3 August.

The changes are not yet law, however if you have employees impacted by this change, you will still need to ensure they meet the eligibility requirements including providing JobKeeper Payment Employee Nomination. 

JobKeeper will also be extended beyond 27 September 2020.

How will JobKeeper be assessed?

To receive JobKeeper from 28 September 2020, employers will need to reassess their eligibility with reference to actual GST turnover for the September 2020 quarter (for JobKeeper payments between 28 September to 3 January 2021), and again for the December 2020 quarter (for payments between 4 January 2021 to 28 March 2021).

Most businesses will generally use their Business Activity Statement (BAS) reporting to assess eligibility. However, as the BAS is generally not due until the month after the end of the quarter, eligibility for JobKeeper will need to be assessed in advance of the BAS reporting deadlines to meet the wage condition for eligible employees.

However, the ATO will have discretion to extend the time an entity has to pay employees in order to meet the wage condition.

JobKeeper rates will change based on hours employed

From 28 September 2020 the payment rates for JobKeeper will reduce and split into a higher and lower rate. Whether an eligible employee can access the higher or lower rate will depend on the number of hours they worked during a 4-week test period.

The higher rate will apply to employees who worked at least 20 hours a week on average in the four weeks of pay periods prior to either 1 March 2020 or 1 July 2020. Between 28 September 2020 and 3 January 2021, the higher rate is $1,200 per fortnight, and $750 for the lower rate. Between 4 January and 28 March 2021, the higher rate is $1,000 per fortnight and $650 for the lower rate.

JobKeeper payment rate

30 Mar to 27 Sept 2020

28 Sept to 3 Jan 2021

4 Jan 2021 to 28 Mar 2021

< 20 hours

$1,500

$1,200

$1,000

> 20 hours

$1,500

$750

$650

Need assistance with JobKeeper?

Contact the Bates Cosgrave team on 02 9957 4033 for more information about how these changes impact your business and which employees are eligible for JobKeeper.

Follow Bates Cosgrave on Linkedin, Facebook or Twitter


Disclaimer

This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.

Share this


Get Small Business News each month


ChineseLanguage Select

Archive
20202019201820172016

Sign up to our monthly client bulletin.