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JobKeeper 2.0 Update

The Government has announced that it will wind back the eligibility criteria for the JobKeeper Payment scheme for the extended period from 28 September 2020 to 28 March 2021. This is a welcome concession from the announcement made three weeks ago in which the conclusion of the JobKeeper Payment scheme was extended from 27 September 2020 to 28 March 2021. See details of the earlier announcement here.

The latest announcement is a result of the economic impact the Victorian lockdown will have on the national economy and will ensure that more businesses and employees are eligible to receive JobKeeper payments.

Turnover Tests

  • For the first extension period to 3 January 2021, businesses and not-for-profits will be required to demonstrate that their actual GST turnover has significantly fallen (using the relevant existing decline in turnover tests) in the September 2020 quarter only relative to the corresponding quarter in 2019.
  • For the second extension period to 28 March 2021, businesses and not-for-profits will be required to demonstrate that their actual GST turnover has significantly fallen (using the relevant existing decline in turnover tests) in the December 2020 quarter only relative to the corresponding quarter in 2019.

Under the rules announced on 21 July 2020, businesses would have been required to demonstrate that their turnover for the first period had fallen in both the June and September quarter, and for the third period that their turnover had fallen in all of the June, September and December quarters.

Below are links to worked examples showing the way that the new rules would apply.

Worked example: For Profit Entity

Worked example: Not-for-Profit Organisation

Employee Eligibility

Employees will now qualify for the JobKeeper Payment with effect from 3 August 2020 if they were employed by the business as at 1 July 2020.

Previously, the employee criteria remained unchanged with employees needing to have been employed by the business as at 1 March 2020.

Broadly, the latest JobKeeper Payment changes are summarised below:

 Entity Eligibility Employee Eligibility 
Turnover Decline Turnover test Date of employment Payments
From 3 August to 27 September 2020 30% for businesses with turnover less than $1b
50% for business with turnover more than $1b
15% for charities
Projected or actual turnover for individual months or quarters ended 30 June or 30 SeptemberMust be employed by the business by 1 July 2020 - other eligibility requirements remain unchanged$1,500 per fortnight to all employees connected to the business
From 28 September 2020 to 3 January 2021UnchangedActual turnover for the quarter ended 30 September 2020Must be employed by the business by 1 July 2020 - other eligibility requirements remain unchanged$1,200 per fortnight to employees working more than 20 hours on average per week

$750 per fortnight for all other eligible employees
From 4 January 2021 to 28 March 2021UnchangedActual turnover for the quarter ended 31 December 2020Must be employed by the business by 1 July 2020 - other eligibility requirements remain unchanged$1,000 per fortnight to employees working more than 20 hours on average per week

$650 per fortnight for all other eligible employees

The rules and other guidance are summarised on the Treasury Website which can be accessed via the following links: JobKeeper Payment Extension and JobKeeper Payment

We will continue to keep you updated with further information as it becomes available.

For further updates, visit TNR’s COVID-19 Resource Centre to help you and your business in this challenging time.

Important: The information contained in this post / article is not advice. Readers should not act solely on the basis of material contained in this post. Items herein are general comments only and do not constitute or convey advice per se. We recommend that our formal advice be sought before acting on anything contained in this post.