LEGAL ALERT: JobKeeper Extended

The Government has announced that it will extend JobKeeper to March 2021 from its original end date of 27 September 2020.

Currently, JobKeeper is a flat payment of $1,500 per fortnight for all eligible employees. However, from 28 September 2020, the following changes will be made to JobKeeper:

  • For eligible employees who, in the four weeks of pay periods before 1 March 2020, were working in the business or not-for-profit for an average of 20 hours or more – the payment will be $1,200 per fortnight from 28 September 2020 and $1,000 per fortnight from 4 January 2021;
  • For other eligible employees – the payment will be $750 per fortnight from 28 September 2020 and $650 per fortnight from 4 January 2021.

To be eligible for JobKeeper after 27 September 2020, businesses and not-for-profits are required to meet a further decline in turnover test for each of the two extension periods, in addition to meeting other existing eligibility requirements:

  • In relation to the first extension period (28 September 2020 to 3 January 2021) – businesses and not-for-profits will need to demonstrate that their actual GST turnover has significantly fallen in the June and September 2020 quarters relative to comparable periods;
  • In relation to the second extension period (4 January 2021 to 28 March 2021) – businesses and not-for-profits will need to again demonstrate that their actual GST turnover has significantly fallen in the June, September and December 2020 quarters relative to comparable periods.

The Commissioner for Taxation will have discretion to set alternative tests, where appropriate and in line with its existing discretion.

A summary of the revised JobKeeper can be found via the following link:

https://treasury.gov.au/sites/default/files/2020-07/Fact_sheet-JobKeeper_Payment_extension.pdf

EMA Legal can assist employers with JobKeeper queries and provide other employment related advice.


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