Since our last blog, the government has eased its JobKeeper criteria.
The continued pressures business are facing in this ever evolving situation around the world have enabled three distinct Stages of JobKeeper to be created - each with its own turnover test for business eligibility.
JobKeeper Stage 1 - 31 March 2020 - 27 September 2020
JobKeeper Stage 2 - 28 September 2020 - 3 January 2021
JobKeeper Stage 3 - 4 January 2021 - 28 March 2021
View all JobKeeper key dates here including JobKeeper fortnights.
Prime Minister Scott Morrison described the revised guidelines as “doing whatever it takes”.
Business eligibility
Qualifying for JobKeeper Stage 2 will now be based on actual performance in the 2020 September quarter (i.e. July, August and September) compared against the same quarter last year.
Under the previous guidelines, a business needed to record a loss in the June and September quarters. Now businesses will only need to show a loss fo the December quarter to qualify for the scheme in January.
Employee eligibility
Employees that previously failed the JobKeeper eligibility test as they were not employed on 1 March 2020, may now be eligible for payments from 3 August 2020 if they were employed on 1 July 2020.
The eligibility criteria for your employees depends on the JobKeeper fortnight. From 3 August 2020, you may be able to nominate new employees as eligible employees for the JobKeeper scheme.
Work our who your eligible employees are here.
To access JobKeeper payments from 28 September 2020, there are two questions that
need to be assessed:
Is my business eligible? And
What JobKeeper rate applies to my eligible employees?
JobKeeper payment rate
The JobKeeper Payment rate is to be reduced and paid at two rates:
From 28 September 2020 to 3 January 2021, the payment rate will be $1,200 per fortnight for all eligible employees who, in the four weekly pay periods before the reference period, 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 more than 20 hours per week, and $750 per fortnight for employees who were working in the business or not-for-profit for less than 20 hours a week on average and business participants who were actively engaged in the business less than 20 hours per week in the reference period.
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 weekly pay periods before the reference period, were working for 20 hours or more a week on average and for business participants who were actively engaged in the business for more than 20 hours per week, and $650 per fortnight for employees who were working for less than 20 hours a week on average and business participants who were actively engaged in the business for less than 20 hours per week in the reference period.
Treasury has published new fact sheets explaining the extension of the JobKeeper Payment.
Remember that the proposed changes are not yet law and the details could still change.
We've got your back and are committed to helping you navigate these uncertain times.
It's tax time so our phone line is busy but feel free to private message us or email info@mjmaccountants.com.au for more details.