JobKeeper 2.0 - What this all means
As expected we have seen an update on JobKeeper which will kick in place following the conclusion of the current scheme which is set for September 27 2020.
From 28 September 2020, JobKeeper 2.0 will commence for a further 6 months until 28 March 2021.
The ATO has produced an official fact sheet which you can find at the bottom of this article. The key points to the new program that are of note are:
The scheme has been extended for 6 months with decreasing financial support
JobKeeper 2.0 will have a 2 tier payment system for full time workers and those working less than 20 hours per week (as at February 2020).
Eligibility for businesses will be based on actual GST turnover opposed to projected turnover which was how the original scheme has been constructed.
Employers will need to reconfirm eligibility at the end of September for the first half of JobKeeper 2.0
Employers will need to reconfirm eligibility at the beginning of January for the second half of JobKeeper 2.0
To be eligible for JobKeeper Payments under the extension, businesses will still need to demonstrate that they have experienced a decline in turnover of:
50 per cent for those with an aggregated turnover of more than $1 billion;
30 per cent for those with an aggregated turnover of $1 billion or less; or
15 per cent for Australian Charities and Not for profits Commission-registered charities (excluding schools and universities).
28 September 2020 - 3 January 2021 - $1,200 per fortnight for full time employees and $750 per fortnight for those working less than 20 hours per week (as at Feb 2020)
4 January 2021 – 28 March 2021 - $1,000 per fortnight for full time employees and $650 per fortnight for those working less than 20 hours per week (as at Feb 2020(.
If a business or not-for-profit does not meet the additional turnover tests for the extension period, this does not affect their eligibility prior to 28 September 2020.
The JobKeeper Payment will continue to remain open to new recipients, provided they meet the existing eligibility requirements and the additional turnover tests during the extension period.
This announcement has only been made today. As information is provided we will update you on any impacts. As always please reach out if we are able to provide any support or guidance.