JobKeeper 2.0

The broad eligibility tests to access JobKeeper remain the same with an extended decline in turnover test, but now the test must be applied at several points:

• To be eligible for the JobKeeper payments from 28 September 2020 to 3 January 2021, businesses and not-for-profits must satisfy the relevant decline in turnover test for the June quarter and for the September quarter based on actual GST turnover.
•  To be eligible for the JobKeeper payments from 4 January 2021 to 28 March 2021, businesses and not-for-profits must satisfy the relevant decline in turnover test for each of the June, September and December quarters based on actual GST turnover.

  ✓ The JobKeeper payment will remain open to new recipients provided they meet the existing eligibility requirements and the additional turnover tests during the extension period. 

  ✓ 1 March 2020 is an absolute date. An employer that had ceased trading, commenced after 1 March 2020, or was not pursuing its objectives in Australia at that date, is not eligible.

  ✓ The Commissioner of Taxation will have discretion to set alternative tests where an employee’s or business participant’s hours were not usual during the February 2020 reference period.

  ✓ Employers will continue to be required to make payments to employees equal to, or greater than, the amount of the JobKeeper payment (before tax), based on the payment rate that applies to each employee (i.e. the wage condition).

The changes are expected to be implemented through amendments to the legislative instrument, Coronavirus Economic Response Package (Payments and Benefits) Rules 2020

There will be two rates of JobKeeper payments for eligible businesses (including self-employed) and not-for-profits:

• for eligible employees and business participants who worked 20 hours or more a week on average in the month of February 2020 – A$1200 per fortnight;
• for eligible employees and business participants who worked less than 20 hours a week on average in the month of February 2020 – A$750 per fortnight.

• for eligible employees and business participants who worked 20 hours or more a week on average in the month of February 2020 – A$1000 per fortnight;
• for eligible employees and business participants who worked less than 20 hours a week on average in the month of February 2020 – A$650 per fortnight.

The JobKeeper payment will be tapered in the December and March quarters to encourage businesses to adjust to the new environment, supporting a gradual transition to economic recovery. The two-tiered payment aims to better align the payment with the incomes of employees before the onset of the COVID-19 pandemic.

If your business and your employees passed the original eligibility tests to access JobKeeper, and you have fulfilled your wage requirements, you can continue to claim JobKeeper up until the last JobKeeper fortnight that ends on 27 September 2020.  

ATO assistant commissioner Andrew Watson said in a recent interview, “Once you’re in, you’re in to the end of September. If you meet the eligibility test once, you’re in it for the whole time.” The original eligibility test was a once only test although there are ongoing conditions that need to be satisfied for each JobKeeper fortnight. 

Treasury has released the report, The JobKeeper Payment: Three-month Review. The Government considered the findings in the report in formulating its changes to the JobKeeper payment.