The Government has extended JobKeeper, and JobKeeper 2.0 is a matter of weeks away. We’ve got all the essential information that employers, employees, and the self-employed need to know about this vital support.

At the time of writing, our understanding is: JobKeeper has been extended by six months, with the payment size reduced and a second lower payment rate introduced for those that work under 20 hours a week. Eligibility criteria have also changed. Eligibility will be more focused on businesses seeing a significant decline in turnover due to COVID-19.

We’ve taken the most important details from the ATO’s update about the JobKeeper extension and covered them below.

JobKeeper 2.0 Payment Rates

Currently, JobKeeper pays $1,500 per fortnight to eligible employees. This version of JobKeeper ends on September 27th.

• From September 28th, eligible employees and business participants that work on average 20 hours or more per week in the four weeks prior to March 1st or July 1st (as appropriate) will be paid $1,200 a fortnight, then from January 4th 2021, this will reduce to $1,000 a fortnight.
• From September 28th, all other eligible employees and business participants will be paid $750 a fortnight, then from January 4th 2021, this will reduce to $650 a fortnight.
• JobKeeper payments will finish on March 28th 2021.

JobKeeper 2.0 Eligibility

Eligibility criteria have been adjusted to suit JobKeeper 2.0. Not all businesses that are currently on JobKeeper will qualify for JobKeeper 2.0. Businesses or employees that did not qualify for JobKeeper previously may apply for the JobKeeper extension if they become eligible.

Employees

• Previously, only employees that began their employment on or before March 1st qualified for payments. As of August 3rd, the relevant date of employment is July 1st.
• Employees with multiple jobs can only claim JobKeeper for one role.
• Self-employed individuals are eligible for JobKeeper 2.0 if they meet the relevant turnover test and are not a permanent employee of another employer.

Further, employees are eligible for JobKeeper 2.0 if they:

• Are currently employed by an eligible employer, including if the employee was stood down or re-hired.
• Were a full-time, part-time, or fixed-term employee on or prior to July 1st, or a long-term casual employee (at least 12 months of regular employment) on or prior to July 1st and are not a permanent employee elsewhere.
• Were 18 years of age or older on July 1st, or 16-17 years of age and an independent or not studying full-time.
• Were either an Australian resident or an Australian resident with a visa (Subclass 444, Special Category) as of or before July 1st.
• Were not receiving Government parental leave or payment, in accordance with Australian worker compensation law, due to an individual’s total incapacity to work.

Employers

• Employers must nominate a payment rate for each employee based upon the average number of hours worked per week. This average must be taken from four weeks of pay periods before either March 1st or July 1st.
• As of September 28th, eligibility for the JobKeeper payments from September 28th to January 3rd will be based on actual GST turnover in the September 2020 quarter. For JobKeeper payments from January 4th to March 28th 2021, eligibility will be based on actual GST turnover in the December 2020 quarter. Specifically, this means a decline in turnover of:
  • 50% for those with an aggregated turnover of more than $1 billion,
  • 30% for those with an aggregated turnover of $1 billion or less, and,
  • 15% for Australian Charities and not-for-profit Commission-registered charities (excluding schools and universities).

JobKeeper has been a lifeline for businesses and individuals. avance is here to help you navigate these difficult times. Get in touch today if you have any questions about JobKeeper or need assistance applying for the payments.

To learn more about changes to JobKeeper, head over to the ATO website.