JobKeeper 2.0 legislation (worth about $32 billion) has now passed both houses of Parliament, and is now law (subject to the formality of Royal Assent). This legislation extends the government’s wage subsidy program by six months to 28 March 2021 and ensures those not eligible for the wage subsidy post-September will be able to access temporary Fair Work Act provisions for a further six months.
Under the new regulation, JobKeeper 2.0 will replace the current flat $1,500 a fortnight subsidy with a two-tiered system.
Check how this impacts you / your business:
1. Employer Eligibility
From 28 September 2020, businesses and not-for-profits seeking to claim JobKeeper will be required to re-assess their eligibility for the JobKeeper extension with reference to their actual turnover in the September quarter 2020 (rather than the June and September quarters). Businesses and not-for-profits will need to demonstrate that they have met the relevant decline in turnover test in this quarter to be eligible for JobKeeper from 28 September 2020 to 3 January 2021.
Businesses and not-for-profits will need to further reassess their eligibility in January 2021 for the period from 4 January to 28 March 2021. Businesses and not-for-profits will need to demonstrate that they have met the relevant decline in turnover test in the December quarter 2020 (rather than each of the June, September and December quarters) to remain eligible for the period to 28 March 2021 (the March quarter).
2. Payment Rates
The payment rates have been pared back and will now depend upon the hours worked by an employee.
From 28 September 2020 to 3 January 2021, the JobKeeper Payment rates will be:
- $1,200 per fortnight for all eligible employees who were working in the business or not for-profit for 20 hours or more a week on average in the four weeks of pay periods before either 1 March 2020 or 1 July 2020, and for eligible business participants who were actively engaged in the business for 20 hours or more per week on average; and
- $750 per fortnight for other eligible employees and business participants.
From 4 January 2021 to 28 March 2021, the JobKeeper Payment rates will be
- $1,000 per fortnight for all eligible employees who were working in the business or not for-profit for 20 hours or more a week on average in the four weeks of pay periods before either 1 March 2020 or 1 July 2020, and for business participants who were actively engaged in the business for 20 hours or more per week on average; and
- $650 per fortnight for other eligible employees and business participants.
3. Employee Eligibility
Employees that meet the eligibility requirements can now be nominated by a new employer if their original employment with a JobKeeper employer ended before 1 July 2020
As of 3 August 2020, the key date for assessing employee eligibility is now 1 July 2020 (not 1 March 2020)
For the fortnights commencing on 3 and 17 August 2020, employers had until 31 August 2020 to meet the wage condition for newly-eligible employees under the revamped 1 July eligibility test.
Further information is available in the Treasury Jobkeeper extension fact sheet. Download here.
You may also access the ATO’s JobKeeper Guides here.
Check out our other COVID19 Resources page here