What’s different about JobKeeper 2.0?

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Posted August 24, 2020

The Federal Government has made significant changes to JobKeeper.

Between 3 August 2020 and 27 September 2020, eligible employers are able to claim JobKeeper payments for current employees who have been employed since at least 1 July 2020 (even if they were employed after 1 March 2020).

The current JobKeeper scheme will remain in place until 27 September 2020 and new JobKeeper rules will apply from 28 September 2020 until 28 March 2021.

The changes to the JobKeeper rules are outlined below.

Business eligibility test:

Between 3 August and 27 September 2020

The eligibility test for businesses remains the same.

Between 28 September 2020 and 3 January 2021

To be eligible for the period between 28 September 2020 and 3 January 2021, a business must demonstrate that their actual GST turnover has significantly fallen in the September 2020 quarter (July, August, September), relative to a comparable period (generally the corresponding quarter in 2019).

Between 4 January 2021 and 28 March 2021

To be eligible for the period from 4 January 2021 until 28 March 2021, a business must demonstrate that their actual GST turner has significantly fallen in the December 2020 quarter (October, November, December), relative to a comparable period (generally the corresponding quarter in 2019).

 

Employee eligibility test:

The employee eligibility criteria mostly remain the same other than the substitution of 1 July 2020 for the 1 March 2020 date.

This applies for the whole period between 3 August 2020 and 28 March 2021.

This means that employees qualify for JobKeeper if they:

• Are currently employed by an eligible employer;
• Were employed on full-time or part-time at 1 July 2020 or as a long-term casual for at least 12 months as at 1 July 2020;
• Aged over 18 years on 1 July 2020 (or if 16 or 17, independent and not a full-time student);
• Were an Australian resident (for Social Security or Income Tax Assessment Act 1936 purposes) and the holder of a Subclass 444 (Special Category) visa as at 1 July 2020; and
• Were not in receipt of any of these payments during a relevant JobKeeper fortnight:
  • Government parental leave or Dad and partner pay under the Paid Parental Leave Act 2010; or
  • A payment in accordance with an Australian worker compensation law for total incapacity for work.

Employees must agree to be nominated for JobKeeper payments if they have not previously done so.  If these employees agree to be nominated for JobKeeper, your business can receive payments for these employees now under the current arrangements and under the extended scheme.

Employers are able to claim JobKeeper payment for the following fortnights before 28 September 2020:

• 31 August to 13 September – payment to be made on or before 13 September 2020; and
• 14 September to 27 September 2020 – payment to be made on or before 27 September 2020.

 

Payment rates:

Between 3 August and 27 September 2020

Jobkeeper payment remains $1,500 per fortnight for each eligible employee.

Between 28 September 2020 and 3 January 2021

For employees who worked 20 hours or more per week on average in the 4 weeks before either 1 March 2020 or 1 July 2020 the business will receive $1,200 per fortnight.

For all other employees the business receives $750 per fortnight.

Between 4 January and 28 March 2021

For employees who worked 20 hours or more per week on average in the 4 weeks before either 1 March 2020 or 1 July 2020 the business will receive $1,000 per fortnight.

For all other employees the business receives $650 per fortnight.

 

Where to find more information

The Treasury released a fact sheet on 10 August 2020 which provides more detail on JobKeeper Payment: https://treasury.gov.au/coronavirus/jobkeeper

JobKeeper information is also available on the Australian Tax Office website: https://www.ato.gov.au/General/COVID-19/Support-for-businesses-and-employers/

JobKeeper employee nomination form: https://www.ato.gov.au/forms/jobkeeper-payment—employee-nomination-notice/

 

Advice or assistance

Our advisers are ready to answer your questions. For advice on this topic, or any other workplace relations matter, please call the HABA Advice Line on 02 9221 9911.

The information contained in this article is based on information available at the time of writing (10 September 2020) and does not constitute legal or financial advice.