Insight

JobKeeper Payment Extension

July 22, 2020

Article by

Pitcher Partners Newcastle & Hunter

The Government is extending the JobKeeper Payment by a further six months to March 2021.

The JobKeeper Payment, which was originally due to run until 27 September 2020, will now continue to be available to eligible businesses (including the self-employed) and not-for-profits until 28 March 2021.

Eligible Businesses

To be eligible for JobKeeper payments under the extension, businesses with an aggregate turnover of $1 billion or less will need to demonstrate that they have experienced a drop in turnover of at least 30 per cent; for those with turnover above this limit, the drop is 50 per cent; and charities are expected to show a 15 per cent shortfall.

From 28 September, there will be retesting for those businesses wanting to remain on JobKeeper. They will need to prove they suffered an actual decline in turnover by the required % for the June and September quarters compared to the same quarters last year.

Subsequently, to keep receiving JobKeeper into 2021, on 4 January businesses will need to reconfirm their turnover shortfall for each of the June, September, and December 2020 quarters, by the required % compared to the same quarters last year.

Payment Rates

From 28 September 2020 to 3 January 2021, the JobKeeper payment rates will be:

$1,200 per fortnight for all eligible employees who, in the four weeks of pay periods before 1 March 2020, were working in the business or not for profit for 20 hours or more a week on average, and for eligible business participants who were actively engaged in the business for 20 hours or more per week on average in the month of February 2020.
$750 per fortnight for other eligible employees and business participants.

From 4 January 2021 to 28 March 2021, the payment rate will be:

$1,000 per fortnight for all eligible employees who, in the four weeks of pay periods before 1 March 2020, were working in the business or not-for-profit for 20 hours or more a week on average and for business participants who were actively engaged in the business for 20 hours or more per week on average in the month of February 2020; and
$650 per fortnight for other eligible employees and business participants.