JobKeeper 2.0 - Extended to 28 March 2021

As the Covid 19 pandemic continues with no end in sight, the government has announced the continuation of the JobKeeper scheme available to small and medium size businesses. However, we expect many small and medium size businesses will drop off the scheme post 27 Septmebr 2020. For those who will continue on the JobKeeper 2.0 will have to qualify and pass the test again. Here are the new rules for small businesses (with annual sales under $1 billion) to qualify:

JobKeeper 2.0 Phase 1: 28 Sep 2020 - 3 Jan 2021:

Sales Eligibility:

To continue in the JobKeeper scheme for the December quarter, your business must prove the following:

  1. Actual GST Turnover for the June 2020 quarter must be at least 30% less than its GST turnover for the June 2019 quarter; and

  2. Actual GST Turnover for the September 2020 quarter must be at least 30% less than its GST turnover for the September 2019 quarter.

    It is important to note that both (1) and (2) must be satisfied.

Payment rates: The $1500 per fortnight pays will be reduced!

Payment rates will be reduced for those who will be eligible for Phase 1 (28 Sep 2020 to 3 Jan 2021). There will be 2 types of rates for employees:

a) Full rate: will be paid to employees who were working in the business for 20 hours or more a week on average in the month of February 2020 (1/2/2020 to 1/3/2020). The payment will reduce from $1500 to $1200 a fortnight.

b) Reduced rate: will be paid to employees who were working in the business less than 20 hours a week on average in the month of February 2020 (1/2/2020 to 1/3/2020). The payment will reduce from $1500 to $750 a fortnight.

JobKeeper 2.0 Phase 2: 4 Jan 2021 - 28 Mar 2021

Sales Eligibility:

To continue into the JobKeeper 2.0 scheme, your business needs to be eligible for phase 2 of JobKeeper 2.0. Eligibilty test needs to be done again to move forward to March quarter:

  1. Actual GST Turnover for the June 2020 quarter must be at least 30% less than its GST turnover for the June 2019 quarter; and

  2. Actual GST Turnover for the September 2020 quarter must be at least 30% less than its GST turnover for the September 2019 quarter; and

  3. Actual GST turnover for the December 2020 quarter must be at least 30% less than its GST turnover for the December 2019 quarter.

    it is important to note that all (1), (2) and (3) must be satisfied.

Payment rates Phase 2 (4 Jan 2021 - 28 Mar 2021) - the pays will be reduced again!

Payment rates will be reduced for those who will be eligible for Phase 2 (4 Jan 2021 to 28 March 2021). There will be 2 types of rates for employees:

a) Full rate: will be paid to employees who were working in the business for 20 hours or more a week on average in the month of February 2020 (1/2/2020 to 1/3/2020). The payment will reduce to $1000 a fortnight.

b) Reduced rate: will be paid to employees who were working in the business less than 20 hours a week on average in the month of February 2020 (1/2/2020 to 1/3/2020). The payment will reduce $650 a fortnight.

What you need to do now:

  1. Compare your business turnover for June 2020 quarter with June 2019 quarter to check if your business sales have reduced by 30% or more

  2. Go through your employees list and draw up a list of the employees who were working 20 hours or more a week and employees working less than 20 hours a week in the month of February 2020. The working hours will determine the rate they will be paid moving forward from 28 September 2020.

We’re here to help:

We will do the sales eligibility test for your business for the June quarter and let you know if your business can move forward to September quarter sales eligibility. If your business doesn’t pass the June quarter test, it will not need to do sales eligibility for September quarter. It means you already failed the test. This test will be done while we do the June 2020 BAS and will inform you if you could qualify to move forward to JobKeeper 2.0 or drop off the system post 28 September 2020.

If you pass the sales eligibility test for June quarter and pass the September quarter, we will continue the JobKeeper application to continue getting paid for December quarter. We will do this test end of September 2020 for those who passed June quarter test.

If you pass the sales eligibility test for June quarter and September quarter, we will continue the JobKeeper application for December quarter. We will do this test again beginning of January 2021 for those who passed the June and September quarters test so you can continue getting paid March 2021 quarter.

The JobKeeper scheme is intended to support your business and keep your employees during this difficult time. Keep working, take time to reinvent your business and stay positive. This too shall pass.

Money Intelligence team is here to support you,

Susan Wahhab