On Tuesday 21st July 2020 the Government announced the extension of the JobKeeper Payment by a further 6 months to March 2021, providing businesses with a level of certainty during this challenging time. Highlights on this recent announcement are below:
- From 28 September 2020 until 3 January 2021, full time employees will receive $1200 per fortnight and part time and casual employees working less than 20 hours per week will receive $750 per fortnight.
- From January 4 2021 until 28 March 2021, full time employees will receive $1000 per fortnight and part time and casual employees working less than 20 hours per week will receive $650 per fortnight.
- Businesses will still need to show a reduced turnover of 30% (or 50% if the businesses turnover is more than $1 billion), however reporting requirements have now changed. Businesses will need to demonstrate that they have met the relevant decline in turnover test in both June and September 2020 quarters, relative to comparable periods, in order to eligible for the JobKeeper subsidy in the December quarter.
- Businesses will then need to demonstrate that they have met the decline in turnover test again in the quarter until 31 December 2020 in order to be eligible to receive payment in 2021.
- The Commissioner of Taxation will have discretion to set out alternative tests that would establish eligibility in specific circumstances where it is not appropriate to compare actual turnover in a quarter in 2020 with actual turnover in a quarter in 2019, in line with the Commission’s existing discretion.