What is JobKeeper?
On the 21 July 2020, the Australian Government announced that there would be changes to the JobKeeper supplement.
The JobKeeper payment has been extended by the Federal Government and applicable businesses will be able to receive the payments until 28 March 2021.
The current JobKeeper payments will remain the same until 27 September 2020. You can learn about these payments here.
If you are currently receiving JobKeeper, it remains the same and available until 27 September 2020 (so long as your business and employees remain eligible).
However, as of 28 September 2020, businesses and not-for-profits (NFPs) who wish to claim JobKeeper will need to reassess their eligibility for the JobKeeper extension with reference to their actual turnover.
The JobKeeper extension will be available for businesses and NFPs that qualify from 28 September until 28 March 2021.
Proving eligibility
From 28 September 2020, businesses and NFPs who want to claim the JobKeeper extension will need to reassess their eligibility with reference to their actual turnover in the September quarter 2020:
- 28 September 2020 to 3 January 2021 period: Businesses and NFPs will need to show that they have met the relevant continuing decline in turnover test in the quarter relative to the comparative quarter (i.e. September 2019 quarter).
- 4 January 2021 to 28 March 2021 period: Businesses and NFPs will need to reassess for a second time in January 2021.
Once again, businesses and NFPs will need to prove that they have met the relevant continuing decline in turnover test in each of the previous quarters (September and December) to be eligible for the March 2021 quarter.
To be eligible for the extension of the JobKeeper payments, businesses and NFPS will need to prove that they have had a decline in turnover of:
- 50% for those with an aggregated turnover of MORE than $1 billion
- 30% for those with an aggregated turnover of $1 billion or LESS
- 15% for Australian Charities and Not for profits Commission-registered charities (excluding schools and universities).
The subsidy will also be extended to employees hired before 1 July 2020 (previously 30 March).
Updated JobKeeper rate
The JobKeeper Payment will be reduced from the 28 September 2020:
- From 28 September 2020 to 3 January 2021, the payment rate will be:
- $1200 per fortnight for all eligible employees and actively engaged business participants who were working at the business or NFP for an average of 20 hours or more a week in the four weeks before 1 March 2020.
- $750 per fortnight for all eligible employees and actively engaged business participants who were working at the business or NFP for less than 20 hours a week in the four weeks before 1 March 2020.
- From 4 January 2021 to 28 March 2021, the payment rate be:
- $1000 per fortnight for all eligible employees and actively engaged business participants who were working at the business or NFP for an average of 20 hours or more a week in the four weeks before 1 March 2020.
- $650 per fortnight for all eligible employees and actively engaged business participants who were working at the business or NFP for less than 20 hours a week in the four weeks before 1 March 2020.
Businesses and NFPs will need to nominate which payment rate they are claiming for each of their eligible employees and business participants.
The Commissioner of Taxation will be able to set out alternative tests where an employee or business participant’s hours were abnormal during the February 2020 reference period. Reasons could include the employee was on leave, they were impacted by the bushfires or not employed for part of February.
JobKeeper payments will continue to be made in arrears.
Learn more about using Payroller for JobKeeper
It’s easy to add JobKeeper payments to STP with Payroller. Read our user guides for step-by-step instructions.