The Government has announced today further changes to JobKeeper 2.0 which was the subject of our previous newsletter (here).
Under today’s announcements, JobKeeper 2.1, it will mean that more businesses will qualify from 28 September 2020 than was originally thought under version 2.0. The changes are in response to the worsening economic conditions in Victoria as a result of its forced shutdowns this week.
Changed Decline in Turnover test
Under JobKeeper 2.1, instead of suffering a decline in turnover in each of the:
- June 2020 and September 2020 quarters to qualify from 28 September 2020 to 3 January 2021, only a fall by the requisite percentage in the September 2020 quarter will be necessary;
- June 2020, September 2020 and December 2020 quarters to qualify from 4 January 2021 to 28 March 2020, only a fall by the requisite percentage in the December quarter will be necessary.
For the decline in turnover test, it will be based upon the actual GST Turnover in the September 2020 or December 2020 quarter as applicable, compared to the actual GST Turnover in the corresponding quarter in the 2019 year. The Commissioner of Taxation may again set alternative qualification tests.
The requisite percentage decline in GST Turnover necessary to qualify remains the same as the existing rules:
- 50 per cent for those with an aggregated turnover of more than $1 billion;
- 30 per cent for those with an aggregated turnover of $1 billion or less; or
Reduced Payment Rates
The reduced payment rates in two stages as previously announced remains:
- From 28 September 2020 to 3 January 2021, the full fortnightly rate will be $1,200 and the partial rate will be $750;
- From 4 January 2021 to 28 March 2021, the full fortnightly rate will be $1,000 and the partial rate will be $650.
Employee Eligibility Changes
From 3rd August 2020, an employee will be eligible if they were employed by the business on 1 July 2020 instead of the existing 1 March 2020 date. This can therefore open up additional employees to be eligible if they have been employed after 1 March 2020.
New Employer & Business Participant Recipients
The JobKeeper subsidy payments from 28 September 2020 and also from 4 January 2021, are open to businesses that are not currently enrolled in the existing JobKeeper program provided that they meet all the requisite eligibility requirements and reduction in turnover tests.
The JobKeeper 2.0 announcement by the Government on 21 July 2020 together with the its changes announced today as 2.1, needs to be reflected in legislation before we have the full details.