JobKeeper 2.0 Explained
As of today, Jobkeeper 2.0 is a law, so it’s time to understand and update you ins and outs. For most of the businesses, JobKeeper has offered a lifeline to get them and their businesses through the last few months. After much anticipation, the Federal Government has announced an extension of the scheme, with some key changes.
Newly Eligible Employees
- Employees hired between 1st March – 1st July may now be eligible
- Casual long term employees who have now been with you for 12 months+, may be eligible
- Any employees that were 17 and are now 18 are eligible
- Any employees that are now Australian residents (and weren’t on 1st March) are eligible
The newly eligible employees can be claimed from August 3rd (fortnight 10). Forms needed to be filled out and submitted by August 31st 2020.
It’s important to note that once an employee has filed their form with an employer, they cannot revoke it, unless they’re stood down. Under these circumstances the employee can choose to submit a JobKeeper claim with a different employer. This is simply to prevent claims from multiple employers.
Keep in mind that you can apply at any point whilst the program is running if your circumstances change and you do qualify at that point in time.
Payment Rate to Decline Steadily
- Payment rates will operate as a two-tiered system as of 28th Employees who work in the business for 20+ hours per week will be eligible for the full payment, and less than 20 hours per week will receive a partial payment
- As of 28th September 2020, the payment rate will decline from $1,500 per fortnight to $1,200 per fortnight
- It will decrease again on 4th January 2021 to $1,000 per fortnight
- As of 28th September 2020, the payment rate will be $750 per fortnight
- It will decrease again on 4th January 2021 to $650 per fortnight
Official End Date
- Under the current update, JobKeeper will officially end on 28th March 2021
Changes To Turnover Test
- Under the current scheme, the decline in turnover test operates by comparing months (July 2020 to July 2019 for instance) or quarters with quarters and forecasts were acceptable
- Under the extended scheme, GST turnover will operate by comparing quarters ONLY
- To qualify, businesses with under $1 billion in revenue must show an actual decrease of 30% or more i.e. Jul – Sept 2020 turnover has to drop by 30% or more compared to same period last year. If not your business will be ruled out for Oct – Dec 2020 Jobkeeper payment.