On 21 July 2020, the Government announced an extension of the JobKeeper Payment until 28 March 2021. It was previously scheduled to finish on 27 September 2020.
Which Businesses are Eligible?
From 28 September 2020, businesses and not-for-profits seeking to claim the JobKeeper Payment will be required to reassess their eligibility with reference to their actual GST turnover in the September quarter 2020 to be eligible for the JobKeeper Extension Payment from 28 September 2020 to 3 January 2021.
And then, in order to continue from 4 January 2021, businesses and not-for-profits will need to further reassess their turnover to be eligible for the JobKeeper Payment. They will need to demonstrate that they have met the relevant decline in turnover test with reference to their actual GST turnover in the December quarter 2020 to be eligible for the JobKeeper Payment from 4 January 2021 to 28 March 2021.
To be eligible for JobKeeper Payments under the extension, businesses and not-for-profits will still need to demonstrate that they have experienced 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; or
- 15% for Australian Charities and Not for profits Commission-registered charities (excluding schools and universities).
What are the JobKeeper Extension Payment Rates?
The table below outlines the JobKeeper periods and applicable payment rates
Initial JobKeeper Period
Payment rate is $1,500 per JobKeeper Fortnight to eligible employee
JobKeeper Extension Quarter 3
Payment rates for JobKeeper Extension Quarter 3 are:
- Tier 1 - $1,200 per JobKeeper Fortnight to eligible employee who were working in the business or not-for-profit for 20 hours or more a week on average in the four weeks of pay periods before either 1 March 2020 or 1 July 2020, and for eligible business participants who were actively engaged in the business for 20 hours or more per week on average; and
- Tier 2 - $750 per fortnight for other eligible employees and business participants.
JobKeeper Extension Quarter 4
Payment rates for JobKeeper Extension Quarter 4 are:
- Tier 1 - $1,000 per JobKeeper Fortnight to eligible employee who were working in the business or not-for-profit for 20 hours or more a week on average in the four weeks of pay periods before either 1 March 2020 or 1 July 2020, and for eligible business participants who were actively engaged in the business for 20 hours or more per week on average; and
- Tier 2 - $650 per fortnight for other eligible employees and business participants.
Assessing if Employees are Eligible
Employees are eligible in the extension period if they:
- are currently employed by an eligible employer (including if you were stood down or re-hired)
- were for the eligible employer (or another entity in their wholly-owned group) either:
- a full-time, part-time or fixed-term employee at 1 July 2020; or
- a long-term casual employee (employed on a regular and systematic basis for at least 12 months) as at 1 July 2020 and not a permanent employee of any other employer.
- were aged 18 years or older at 1 July 2020 (if you were 16 or 17 you can also qualify if you are independent or not undertaking full time study).
- were either:
- an Australian resident (within the meaning of the Social Security Act 1991); or
- an Australian resident for the purpose of the Income Tax Assessment Act 1936 and the holder of a Subclass 444 (Special Category) visa as at 1 July 2020.
- were not in receipt of any of these payments during the JobKeeper fortnight:
- government parental leave or Dad and partner pay under the Paid Parental Leave Act 2010; or
- a payment in accordance with Australian worker compensation law for an individual's total incapacity for work.
Only one employer can claim the JobKeeper Payment in respect of an employee.
When can I include Employees meeting the 1 July 2020 Eligibility Criteria for JobKeeper?
Any newly eligible employees employed at 1 July 2020 can be added from JobKeeper Fortnight 10 (JobKeeper-Start-FN10), commencing 3 August 2020
Employers have until 31 August 2020 to meet the wage condition for all new eligible employees included in the JobKeeper scheme under the 1 July 2020 eligibility test for employees newly eligible employees commencing JobKeeper in JobKeeper Fortnight 10 (03 August - 16 August) or JobKeeper Fortnight 11 (17 August - 30 August)
Please refer to the following websites for more information: