The Federal Government has further amended the JobKeeper extension. These further changes to our previous post are shown in italics.
The employment stimulus package will continue for a further six months until 28 March 2021.
Amendments
There are changes to employer eligibility for JobKeeper and to the payment rates. The additional six-months is divided into two periods:
- 28 September 2020 to 3 January 2021; and
- 4 January 2021 to 28 March 2021.
Eligible employers will continue to claim a fortnightly payment of $1,500 per eligible employee until 27 September 2020.
Eligible employees will continue to receive a minimum of $1,500 per fortnight before tax from their employer until 27 September 2020.
From 28 September 2020 the payment rates will be reduced.
Eligibility for employers
From 28 September 2020 to 3 January 2021 businesses with turnover of less than $1 billion must experience a decline in turnover of 30% for the September 2020 quarter only compared to the equivalent 2019 quarter. The employer must have been in an employment relationship with each eligible employee on 1 March 2020 or 1 July 2020 and needs to confirm that they are currently employed. From 4 January 2021 to 28 March 2021, the December 2020 quarter only must fall by the relevant percentage compared to the December 2019 quarter.
JobKeeper payment rates
From 28 September to 3 January 2021 for employees who worked 20 hours or more per week on average in February 2020 or June 2020, employers will receive $1,200 per employee fortnightly. These employees must therefore be paid a minimum of $1,200 fortnightly before tax. For employees who worked less than 20 hours per week on average in February 2020 or June 2020, the employers will receive $750 per employee fortnightly. These employees must therefore be paid a minimum of $750 fortnightly before tax.
From 4 January 2021 to 28 March 2021 the relevant amounts fall from $1,200 to $1,000 and from $750 to $650.
If employees were employed for both February 2020 and June 2020 then the period with the higher number of hours worked is to be used.
More information
The JobKeeper section of the By Lawyers Dealing with COVID-19 Legal Issues – Some practical information commentary has been updated. A link to this helpful resource is available at the top of the matter plan in every By Lawyers guide.