JobKeeper Scheme will be extended beyond September 2020

On 21 July 2020, the Federal Government announced that payments under the JobKeeper Scheme, that was previously due to expire on the 27 September 2020, will be extended until 28 March 2021.

The Treasury has since released updated information surrounding the extension of the JobKeeper scheme.

What are the updates?

Changes to the JobKeeper payment rates

The current fortnightly payment of $1,500 under the JobKeeper scheme will remain unchanged until the 27 September 2020. After this date, the payment rates will be reduced under two extension periods.

From 28 September 2020 to 3 January 2021 (for workers)

The JobKeeper payment rates will be reduced to:

• $1,200 per fortnight for all eligible employees who, in the four weeks of pay periods before 1 March 2020, were working 20 hours or more a week on average.; and
• $750 per fortnight for other eligible employees working less than 20 hours per fortnight.

From 4 January 2021 to 28 March 2021 (for workers)

The JobKeeper payments rates will be further reduced to:

• $1,000 per fortnight for all eligible employees who, in the four weeks of pay periods before 1 March 2020, were working 20 hours or more a week on average.; and
• $650 per fortnight for other eligible employees working less than 20 hours per fortnight.

Additional turnover tests for employers

After 27 September 2020, businesses and not-for-profits will be required to meet a further decline in turnover test for each of the two extension periods.

From 28 September 2020 to 3 January 2021 (for employers)

To be eligible for the JobKeeper payments, businesses and not-for-profits will be required to demonstrate that their actual GST turnover has significantly fallen in both the June quarter of 2020 and the September quarter of 2021 as compared to the corresponding quarters in 2019 and 2020 respectively.

From 4 January 2021 to 28 March 2021 (for employers)

To be eligible for the JobKeeper payments, businesses and not-for-profits will be required to demonstrate that their actual GST turnover has significantly fallen in the June quarter of 2020 and the September and December quarters of 2021 as compared to the corresponding quarters in 2019 and 2020 respectively.

It is important to note that the decline in turnover for the two extension periods is based on the actual GST turnover and not the projected GST turnover prior to the extensions.

For businesses with a turnover of less than $1b, the significant fall in revenue must represent at least a 30% decline to a comparable period in the previous year.

For businesses with a turnover of more than $1b, the significant fall in revenue must represent at least a 50% decline to a comparable period in the previous year.

For not-for-profits and charities, the decline must be a minimum 15%.

Am I still eligible as an employee?

The rules in determining whether you are an eligible employee to receive JobKeeper payments have remained unchanged. To see whether you are eligible, refer to our previous article on the JobKeeper scheme.

Get help from an employment lawyer

If you think your employer is not behaving appropriately in accordance with the JobKeeper scheme and the recent amendments of the Fair Work Act, you should contact your Union or the Hall Payne employment team for further urgent advice and assistance.

Today’s article was researched by Hall Payne Research Clerk Kelvin Lee and authored by Principal Joseph Kennedy.

Find this article useful?

You may also like to read:

• Overpayment of JobKeeper and wage deductions
• Can my employer stand me down?
• Employment rights and obligations while working from home during COVID-19

Legal advice and assistance continues during COVID-19

We continue to provide our client services during the coronavirus outbreak.  

Most of our teams have now returned to their respective offices with others remaining fully equipped to work remotely, where necessary.

You can contact us by phone or email to arrange your consultation; either face-to-face at one of our offices, by telephone or by videoconference consultation.

Phone: 1800 659 114
Email: general@hallpayne.com.au