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JobKeeper 3.0!?

JobKeeper 3.0!?

On 21 July 2020,the Government announced that the JobKeeper Payment (‘JKP’) would be extended until 28 March 2021(i.e., for a further six months beyond its original end date of 27 September 2020). As a result, JKPs would now be made over two separate extension periods, being:

•Extension period 1–which covers the seven new JobKeeper fortnights that commence on 28 September 2020 and end on 3 January 2021;

Extension period 2 –which covers the six new JobKeeper fortnights that commence on 4 January 2021 and end on 28 March 2021.
 
They also announced the reduction in amounts payable as we made mention of in our last email.

From 28 September 2020, the revised JKP scheme (referred to as ‘JobKeeper 2.0’) would be less generous(i.e., being subject to a new dual payment rate system)and would require businesses and not-for-profits to apply a new ‘Decline in Turnover Test ‘based on their actual GST turnover (as opposed to their projected GST turnover).

Furthermore, on 7 August 2020, the Government announced adjustments to JobKeeper 2.0 to take into account the damaging effects the new Stage 4 restrictions would have on Victorian businesses.
 
The changes are importantly being made to eligibility and an adjustment to  the Turnover test.

Adjustments to employee eligibility–From 3 August 2020, the relevant date of employment (which is used to determine an employee’s eligibility to JKPs) will move from 1 March 2020 to 1 July 2020.This is designed to increase employee eligibility for both the existing JKP scheme, as well as for the new extension periods from 28 September 2020.

Casual employees will still be required to have been employed on a regular and systematic basis for a minimum of 12 months (as is required under the existing JKP scheme).

Adjustments to  the  ‘Decline  in  Turnover  Test’–To qualify for the JKP in the extension periods, businesses will now only have to demonstrate that their actual GST turnovers have significantly decreased in the previous quarter under JobKeeper 3.0.

Specifically, to be eligible for the JKP Extension Period 1 (i.e., from 28 September 2020 to 3 January 2021), businesses only need to demonstrate a significant decline in turnover in the September 2020 quarter (whereas under the previously announced JobKeeper 2.0, they would have been required to show that they had suffered a significant decline in turnover in both the June and September 2020 quarters).

To  be  eligible  for  the JKP Extension  Period  2(i.e., from 4  January  2021  to  28   March 2021) businesses only need to demonstrate a significant decline in turnover in the December 2020 quarter (whereas under the previously announced JobKeeper 2.0,they would have been required to show that they had suffered a significant decline in turnover in each of the June, September and December 2020 quarters).

These are significant Improvements to the JKP system that will provide businesses with the confidence that they require during this difficult period.

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