On 21 July 2020 the Government announced an extension to the JobKeeper program to 28 March 2021, however to remain eligible for payments after 28 September 2020 eligibility will need to be reassessed with new eligibility requirements and a reduced payment amount per employee per fortnight. How will these changes affect you?
- On 1 March 2020 carried on a business in Australia or was a non‑profit body pursuing its objectives principally in Australia.
- An employer that had ceased trading prior to 1 March 2020, commenced after 1 March 2020, or was not pursuing its objectives in Australia at that date, is not eligible.
Additional decline in turnover tests
- To receive JobKeeper payments from 28 September 2020, businesses will need to meet the basic eligibility tests and an extended decline in turnover test based on actual GST turnover.
- Employee eligibility will remain broadly the same but the value of the payment will change from 28 September based on average weekly hours in February 2020.
- JobKeeper payments from 28 September 2020 are paid at a lower rate for employees who worked less than 20 hours per week on average in the four weeks of pay periods before 1 March 2020.
JobKeeper arrangements until 27 September 2020
- If your business and your employees passed the original eligibility tests to access JobKeeper, and you have fulfilled your wage requirements, you can continue to claim JobKeeper up until the last JobKeeper fortnight that ends on 27 September 2020, without reassessing your eligibility.
- The Commissioner of Taxation will have discretion to set out alternative tests that would establish eligibility in specific circumstances where it is not appropriate to compare actual turnover in a quarter in 2020 with actual turnover in a quarter in 2019, in line with the Commissioner’s existing discretion.
- The Commissioner of Taxation will have discretion to set out alternative tests for those situations where an employee’s or business participant’s hours were not usual during February 2020. Also, the ATO will provide guidance on how this will be dealt with when pay periods are not weekly.