Last Wednesday, the Government released details of 'JobKeeper 2.0', an extension to the JobKeeper scheme which was originally set to conclude in September 2020.
The JobKeeper payment has now been extended for a further six months, until 28th March 2021, however, businesses (including sole traders) and not-for-profits will need to consider whether they meet the ongoing eligibility requirements.
The team at Smith Shearer are happy to assist you in assessing whether your business meets the ongoing eligibility requirements, or in answering any questions you may have regarding JobKeeper 2.0. Please contact us if you'd like to discuss the JobKeeper scheme.
JobKeeper 2.0 - What Has Changed?
From 28th September 2020, the rate of payment has reduced and a lower rate of payment has been introduced for those who work fewer hours:
Two Ties of Payments
- An employee is in tier one if they worked 20 or more hours per week on average in the month of February 2020.
- An employee is in tier two if they worked less than 20 hours per week on average in the month of February 2020.
A Reduced Payment Rate
Payment rates will also reduce over 2 separate periods, as follows:
- 28 September 2020 to 3 January 2021; AND
- 4 January 2021 to 28 March 2021.
Ongoing Eligibility
JobKeeper 2.0 is aimed at businesses and not-for-profits who have experienced an ongoing significant decline in turnover. Therefore, actual GST turnover will be used to assess eligibility, rather than projected GST turnover.
- From 28 September 2020, businesses and not-for-profits will need to demonstrate that they have met the relevant decline in turnover test in the June and September quarters 2020.
- From 4th January, businesses and not-for-profits will need to demonstrate that they have met the relevant decline in turnover test with reference to their actual GST turnover in each of the June, September and December quarters 2020.
For information regarding the turnover test, see the treasury factsheet below:
Treasury Factsheet
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