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Updated 11 August 2020.
Further extension of time to enrol and reduced payment rates for the Federal Government’s $130 billion wage subsidy JobKeeper Payment,
The Government has further extended the JobKeeper Payment by a further six months to 28th March 2021. The payment rate will be reduced and a lower payment rate will be introduced for those who work fewer hours.
In addition, from 3 August 2020 the relevant date of employment will move from 1 March to 1 July 2020, increasing employee eligibility for the existing scheme and the extension.
Changes to eligibility criteria:
- 1st Extension: From 28 September 2020, businesses seeking to claim the JobKeeper Payment will be required to demonstrate that they have suffered a decline in turnover using actual GST turnover (rather than projected GST turnover as previously) to be eligible for the JobKeeper Payment from 28 September 2020 to 3 January 2021. Further businesses will need to demonstrate the above decline in the September quarter 2020 (July, August, September) relative to a comparable period (generally the corresponding quarter in 2019).
- 2nd Extension: From 4 January 2021, businesses will need to further reassess their turnover to be eligible for the JobKeeper Payment. They will need to demonstrate that they have met the relevant decline in turnover test with reference to their actual GST turnover in the December quarter 2020 to be eligible for the JobKeeper Payment from 4 January 2021 to 28 March 2021. Further businesses will need to demonstrate the above decline in the December quarter 2020 (October, November, December) relative to a comparable period (generally the corresponding quarters in 2019)
Changes to the JobKeeper Payment Rate:
The rate is to be reduced and paid at two rates:
- 1st Extension: From 28 September 2020 to 3 January 2021, the rates will be:
$1,200 per fortnight for all eligible employees who were working in the business for 20 hours or more a week on average in the four weeks of pay periods before either 1 March 2020 or 1 July 2020, and
$750 per fortnight for other eligible employees and business participants.
- 2nd Extension: From 4 January 2021 to 28 March 2021, the JobKeeper Payment rates will decrease to be:
$1,000 per fortnight for all eligible employees who were working in the business or notfor-profit for 20 hours or more a week on average in the four weeks of pay periods before either 1 March 2020 or 1 July 2020, and for business; and
$650 per fortnight for other eligible employees.
The State Government have also announced that the JobKeeper Payment is exempt from payroll tax and WorkCover premiums, for the gap between an employees normal wage and fortnightly JobKeeper Payment.
Our Small Business Support & Assistance Officer, Colin Thompson, is available to help you make sense of your entitlements. Reflecting on his interactions with over 120 local businesses to date, his key takeaways is;
“No matter how much you have read or think you know about the support on offer, there is always something new to learn and seek for your business.”
Colin is keeping our Quick Reference Guide to available financial packages updated as announcements are made, and is available to businesses in the Greater Hamilton region for a free, 1:1, independent, no obligation chat to help you make sense of what you’re entitled to.
- Self-employed businesses without Employees are eligible for JobKeeper including:
- Sole Traders
- Partnerships (only 1 Partner is eligible)
- Trusts (only 1 Beneficiary is eligible)
- Companies (only 1 Director is eligible)
- The Commissioner of Taxation has discretion where businesses have started within the last 12 months
- JobKeeper is not income tested, so an Employee who has been stood down may earn additional income without the payment being affected
- Employees not on the books (paid in cash), are NOT eligible for
- Employees receiving JobKeeper will need to include the amount of $1500 in reporting for child support
- Any amounts paid by Services Australia whilst receiving JobKeeper will need to be repaid
To make an appointment with Colin, contact Council’s Business Development Officer, Daniel Shaw, via firstname.lastname@example.org or 0429 578 216.
You can access the Quick Reference Guide and other resources on our Business & Tourism Support Hub, and local businesses should join the Greater Hamilton Business & Tourism COVID-19 Facebook Group and stay connected.