On Tuesday the 21st July, the government announced proposed changes to JobKeeper which will come into effect in September 2020.
Rather than winding up the stimulus in September, it will now continue to be available to eligible businesses through to 28 March 2021, however it will be at a reduced payment rate.
To continue to receive JobKeeper after this date, businesses will need to reassess their eligibility for the JobKeeper extension by proving they continue to meet the decline of turnover test (30% reduction) in both the June and September quarters 2020.
Organisations will also need to reassess after 4 January 2021 to show they meet continuing decline in turnover to continue receiving into the March 2021 quarter.
The current rate of $1500 per fortnight will be reduced down to $1,200 from 28 September and further reduced to $1,000 per fortnight from 4 January 2021.
Casuals working less than 20 hours per week during the month of February 2020 will be paid at lower rate as well (ie $750 per fortnight and $650 per fortnight respectively)
JobKeeper remains open to new recipients, provided they meet the existing requirements and the additional turnover tests during the extension period.
Whilst we hope a large portion of our client operating a business are in a position where they no longer need Jobkeeper payment, for those who are still on the road to recovery, the announcement that the government will be extending jobkeeper, will be a sigh of relief.
We are yet to receive all the details on exactly how eligibility will be tested/reported (especially for alternative tests).
As soon as we have more information, you can count on the team at Walsh Accountants to publish and share it with you.