COVID-19 – Jobkeeper Payment

On 21 July 2020 the Australian Government announced the extension of the JobKeeper Payment for a further 6 months until 28 March 2021.

The JobKeeper payment is a temporary scheme open to businesses impacted by the Coronavirus. The aim of the scheme is to encourage the retainment of employees rather than termination during the downturn of business, and ultimately economic recovery.There are two separate extension periods, namely:

  • Extension 1: from 28 September 2020 to 3 January 2021
  • Extension 2: from 4 January 2021 to 28 March 2021

For each extension period, an additional actual decline in turnover test applies and the rate of the JobKeeper payment is different. You do not need to re-enrol for the JobKeeper extension if you are already enrolled for JobKeeper for fortnights before 28 September 2020. The scheme will remain open to new participants, provided they meet the eligibility requirements for the relevant period.

Extension 1: from 28 September 2020 to 3 January 2021

For the first period of the extension, eligible businesses will need to show that their actual GST turnover has declined in the September 2020 quarter.

The rates of the JobKeeper payment in this extension period are tiered and will depend on the hours worked by the eligible employees at relevant periods. Tier 1 rate will amount to a $1,200 payment per fortnight (before tax) and a tier 2 rate will amount to a $750 per fortnight (before tax).

Extension 2: from 4 January 2021 to 28 March 2021

For the second period of the extension, eligible businesses will need to show that their actual GST turnover has declined in the December 2020 quarter.

The rates of the JobKeeper payment in this extension period are also tiered and will depend on the hours worked by the eligible employees at relevant periods. Tier 1 rate will amount to a $1,000 payment per fortnight (before tax) and a tier 2 rate will amount to a $650 per fortnight (before tax).

This is general information only, please contact BTLawyers if you require advice on your individual circumstances.

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