This article was drafted based upon the details contained in the government article. With the latest information, the article will be further updated to incorporate the changes.
The latest extension date
Keeping in mind the ongoing COVID19 crisis, the Australian Government has introduced Jobkeeper Payment Extension Scheme for another six months. Earlier the original end date of the scheme was 27 September 2020. the government increased the scheme by exactly six months. This extended period comprises 13 fortnights.
What is new in the Jobkeeper Payment Extension scheme?
- The two-tier payment rate will be applied, depending on the worker’s average weekly work hours during the reference period
- From 28 September 2020, the $1500 per fortnight payment rate will be reduced. Which will be further reduced on 4th January. Revised payment figures will be disclosed by the government soon.
- The decline in the turnover test will be based on actual GST turnover
- The decline in turnover will be retested every quarter
The treasurer further announced changes to increase access to the scheme during the extension period. driven by the ongoing crisis and the implementation of Stage 4 business restrictions in Victoria. This means more businesses will now be able to access the scheme.
What are the proposed changes in Jobkeeper Payment Extension?
The proposed amendments to the operation of the JobKeeper scheme are outlined below. Other features of the current scheme will remain the same for the extended scheme.
1. Payment Rates
The proposed amendments to the operation of the Jobkeeper Payment Extension scheme are outlined below. Other features of the current scheme will remain the same for the extended scheme
However, the payment rates will be subsequently reduced in two tranches. Initially from 28 September 2020 to 3 January 2021, the Full-time minimum rates will be $1200 per fortnight, the partial rate for the same will be $750 per fortnight.
From 4 January 2021 to 28 March 2021 The full rates will be 1000 per fortnight and partial rates will be 650 per fortnight. It is important here to note that the businesses will be required to nominate themselves first which payment rate they are claiming
2. Employee Categories
As per the current scheme, there are no distinctions between full-time, part-time, fixed-term, casual, or stood down employees for the purpose of minimum payments. Every eligible employee is entitled to the minimum payment regardless of the number of hours worked in the fortnight.
The only criterion for businesses is that they must have been actively engaged in their sector on or before 1 March 2020. And the employee must have been employed by the business on or before 1 March 2020.
In the Jobkeeper Payment Extension scheme a two-tier approach is suggested for the takeout of payments. The proposed amendments to the operation of the JobKeeper scheme are outlined below. Other features of the current scheme will remain the same for the extended scheme.
3. Eligibility Criterion – Decline in turnover test
The decline in the turnover test will be carried out by comparing the business’: Projected GST turnover in the period of 2020 to current turnover in the comparison period of 2019
In the Jobkeeper Payment Extension scheme, the turnover test will operate in two different extensions. For Extension 1 from 28 Sep 2020 to 3 Jan 2021 Actual GST turnover for September 2020 quarter will be compared to actual GST turnover for the September 2020 quarter
For extension 2 from 4 Jan 2021 to 28 March 2021 Actual GST turnover for Dec 2020 quarter will be compared to the actual GST turnover Dec 2019 quarter
