The extension of the JobKeeper scheme beyond 27 September 2020 is expected to require legislative amendments once parliament resumes from 24 August 2020.

The JobKeeper payment rate is to be reduced in two phases and paid at two rates:

Phase 1: 28 September 2020 to 3 January 2021

Tier 1: $1,200 per fortnight – from 28 September 2020 to 3 January 2021, the payment rate will be reduced from $1,500 to $1,200 per fortnight for all eligible employees who, in the 4 weeks before 1 March 2020 were working in the business for 20 hours or more a week on average and for eligible business participants who were actively engaged in the business for more than 20 hours per week on average in the month of February 2020; and

Tier 2: $750 per fortnight – for employees who were working in the business for less than 20 hours a week on average and business participants who were actively engaged in the business less than 20 hours per week in the 4 weeks before 1 March 2020.

Phase 2 – 4 January 2021 to 28 March 2021

Tier 1: $1,000 per fortnight – from 4 January 2021 to 28 March 2021, the payment rate will be $1,000 per fortnight for all eligible employees who in the 4 weeks before 1 March 2020, were working for 20 hours or more a week on average and for eligible business participants who were actively engaged in the business for more than 20 hours per week on average in the month of February 2020; and

Tier 2: $650 per fortnight – for employees who were working for less than 20 hours a week on average and business participants who were actively engaged in the business for less than 20 hours per week in the 4 weeks before 1 March 2020.

Business Eligibility

Phase 1

From 28 September 2020, organisations seeking to claim JobKeeper payments will be required to reassess their eligibility with reference to their actual turnover in the June and September quarters of 2020. Organisations will need to demonstrate that they have met the relevant continuing decline in turnover test in both of those quarters to be eligible for Job Keeper from 28 September 2020 to 3 January 2021. Businesses and not for profits will need to demonstrate that their actual GST turnover has fallen by the relevant amount in both the June quarter 2020 (April, May and June) and the September quarter 2020 (July, August, September) relative to comparable periods (generally the corresponding quarters in 2019).

Phase 2

Organisations will need to again assess their eligibility in January 2021 for the period from 4 January to 28 March 2021. Organisations will need to demonstrate that they have met the relevant continuing decline in turnover test in each of the previous three quarters to remain eligible for the March 2021 quarter. Businesses and not for profits will need to demonstrate that their actual GST turnover has significantly fallen by the relevant amount in each of the June, September and December quarters, relative to comparable periods (generally the corresponding quarters in 2019).

The decline in turnover test under the JobKeeper Payment extension remains the same as the existing rules, being:

• entities with turnover greater than $1 billion – 50%;
• entities with turnover less than $1 billion – 30%; and
• ACNC – registered charities (excluding schools and universities) – 15%.

How is eligibility assessed?

Eligibility will continue to be assessed on the information reported in the Business Activity Statement (BAS). The deadline to lodge the BAS for the September quarter or month is late October, and for the December quarter or month the BAS deadline is late January where lodged monthly, or late February where lodged quarterly.

Employee eligibility

The existing employee eligibility requirements have not changed, and are as follows:

• currently employed and were employed by the employer at 1 March 2020;
• full-time, part-time, or long-term casuals;
• at least 18 years of age or aged 16 or 17 years and independent or not undertaking full time study;
• an Australian resident within the meaning of the Social Security Act 1991; and
• not in receipt of a JobKeeper Payment from another employer.

If you would like any further direction, please contact our workplace team to discuss.