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Today, Treasury announced changes to certain aspects of the extended Jobkeeper 2.0 program previously advised, taking effect from 28 September 2020 until 28 March 2021. It also announced one very important change to the Jobkeeper program currently in effect.

These changes address the eligibility criteria for both businesses and employees seeking to gain entry into both the current and extended Jobkeeper program by relaxing some of the more restrictive conditions initially announced.

Here is what has changed since our previous post:

  1. With effect from 3 August 2020, the relevant date of employment for determining employee eligibility for both the current and extended Jobkeeper programs will move from 1 March 2020 to 1 July 2020.

This means that employees who otherwise would have qualified for Jobkeeper except for the fact that they were not employed by the business as at 1 March 2020 can now potentially qualify for the final four fortnights of the current Jobkeeper program if they were permanent employees of the business as at 1 July 2020 (or were casual employees who were employed on a regular and systematic basis for at least 12 months prior to 1 July 2020 and were not permanent employees of another employer).

  1. From 28 September 2020, businesses still will need to reassess their claim for JobKeeper. However, businesses only will be required to demonstrate an actual 30%* decline in GST Turnover for the September 2020 quarter compared to the September 2019 quarter.

 

  1. From 4 January 2021, businesses will need to reassess their claim for JobKeeper only by demonstrating an actual 30%* decline in GST Turnover for the December 2020 quarter compared to the December 2019 quarter.

 

  1. From 28 September 2020, the two-tiers for the Jobkeeper payment rate previously announced (based on hours worked) remain unchanged. If employees were employed as at both 1 March 2020 and 1 July 2020, employers are required to select the immediately preceding four-week period with the greater number of hours worked to determine the applicable Jobkeeper payment rate.

Given the ongoing economic impact continuing to be felt by businesses, we welcome these announced changes to the Jobkeeper Scheme. In these times it appears the only constant is change and we expect this to continue.

Further detailed commentary will be available in the coming weeks. Follow this link for more information: https://treasury.gov.au/sites/default/files/2020-08/Fact_sheet-JobKeeper_Payment_extension.pdf

If you need assistance understanding what this might mean for you, don’t hesitate to call us on 07 3844 5555 to discuss with a Macro team member today.

*For charities it is 15%.

 

Date published: 7 August 2020

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