man with a briefcase and a surgical mask

COVID-19: JobKeeper Phase Two

Malcolm Campbell ||

The Australian Government announced an extension to the JobKeeper payment scheme on 21 July 2020 which will commence on 28 September 2020 and end on 28 March 2021. The extension will be available to most employer types including not-for-profits and charities as well as certain other eligible ‘business participants’ such as sole traders, partners in a partnership and beneficiaries of a trust.

The key changes that will operate from 28 September 2020 are:

  1. An introduction to a two-tiered payment system;
  2. Reduction of the current fortnightly payments; and,
  3. The introduction of a stricter eligibility criteria for qualifying businesses and not-for-profits.

JobKeeper – Payment Changes

Under the revised scheme, the JobKeeper payment of $1,500 (gross) will be reduced and paid at two rates on 28 September 2020 and again on 4 January 2021 based on the table below:

Date Full rate
per fortnight
Less than 20hrs worked
per fortnight rate
28 September 2020 to 3 January 2021 $1,200 $750
4 January 2021 to 28 March 2021 $1,000 $650

The extent of the payment reduction depends on whether:

  • For Employees – in the four weeks of pay period before 1 March 2020, they were working in the business or not-for-profit for 20 hours or more a week on average; and
  • For Eligible Business Participants – they were actively engaged in the business for 20 hours or more per week on average in the month of February 2020.

JobKeeper – Turnover Test Changes

From 28 September 2020, in addition to the existing eligibility requirements, organisations must reassess their eligibility for the JobKeeper payment extension with reference to their actual 2020 June and September quarter. Relevant continuing decline in turnover test must be proven by the organisations in both the quarters to be eligible for JobKeeper payments from 28 September 2020 to 3 January 2021.

Further reassessment of the organisations will be needed in January 2021 for the period from 4 January to 28 March 2021.  Again, relevant continuing decline in turnover test in each of the previous three quarters must be demonstrated by the organisations to remain eligible for the March 2021 quarter.

JobKeeper payment period Decline in Turnover Test
28 September to 3 January 2021 Applied by reference to actual turnover in both quarters ending June and September 2020
4 January 2021 to 28 March 2021 Applied by reference to actual turnover in quarters ending June, Sept, and Dec 2020

Should you require any further information please do not hesitate to contact a member of Coleman Greig’s Employment Law Team, who would be more than happy to assist you today.

Share:

Send an enquiry

Any personal information you provide is collected pursuant to our Privacy Policy.

Categories
Archives
Author

More posts

Festive season: Managing public holiday work obligations

Employers are gearing up for a run of public holidays. Provisions requiring an employee to work on a public holiday in certain circumstances have been commonplace and not overly concerning. However, the Federal Court recently held that such a provision contravened the National Employment Standards.

Employers should exercise caution when dismissing during probationary period

Can you dismiss an employee during the probationary period? Yes, but a recent case is a lesson in caution. The recent Federal Court decision of ‘Dabboussy v Australian Federation of Islamic Councils’ is a warning to employers to consider the importance of timing if dismissing an employee during probation.

The business impacts from the Government’s new cyber security laws

Cybercrime ‘is a multibillion-dollar industry that threatens the wellbeing and security of every Australian’. In an effort to combat the impact on businesses and individuals, the Australian Government has introduced cyber security legislative reforms into the Parliament.

A guide to intrafamily adoption

Adoption is the process where a parent’s legal rights for their child are transferred to another person. The formal adoption of a stepchild or close relative is known as intrafamily adoption.

Passenger movement and visa data-matching by the ATO

Heading overseas for work or a holiday? Taxation issues, including tax residency, should be on front of mind when departing from or arriving to Australia. Why? Because the Australian Taxation Office (ATO) can follow your footprints and, if you’re not careful, spring unexpected taxes on you.

© 2024 Coleman Greig Lawyers  |  Sitemap  |  Liability limited by a scheme approved under Professional Standards Legislation. ABN 73 125 176 230