A month ago the Federal Government’s JobKeeper program was extended, albeit with a lower rate of support for all workers. You can review the details of this extension within our previous article.
What support is offered?
From 28 September 2020 to 3 January 2021, the level of fortnightly support will be decreased to $1,200 for those working 20+ hours per week, and $750 for those working less than 20 hours per week.
From 4 January 2021 to the currently scheduled end to the JobKeeper program on 28 March 2021, these rates will be decreased to $1,000 and $650 respectively.
What should you expect?
All companies seeking to continue their support under the JobKeeper program will have to re-apply for support, based on the decline in turnover test for the previous year’s respective quarter. This remains at 50% for large businesses, 30% for small businesses, and 15% for charities and other not-for-profits, barring education institutions.
These rates are calculated using actual GST turnover, rather than projected GST turnover. Alternatively, companies can also seek assessment on an alternative test, should they be able to establish that the actual GST turnover test is inappropriate for their business.
Which workers are covered?
In addition to those who qualified initially on 1 March 2020, those individuals who were employed on 1 July 2020 are now also covered by JobKeeper. This of course should cover many of those more recently employed since COVID-19 measures were introduced.
With this second round of the JobKeeper program, and re-qualification just around the corner, it’s important to ensure all of your records are ready for your application, and to check whether any recent hires can be added to your covered employees.
Should the COVID-19 pandemic continue until 2021, it is likely that the JobKeeper program would be extended further, however, at what level it can be expected to continue is uncertain. Given the recent decrease to the base rate, the level of financial support is very unlikely to rise, and may drop even further, as the Government seeks to encourage employees to get back to work and improve our COVID-19 damaged economy.
Need assistance understanding your obligations and how to access JobKeeper, or applying for an alternate test? Contact Gavin Parsons & Associates on 02 9262 4471 for a quick initial consultation and discussion of how we can assist in your application for JobKeeper.