As the impact of the coronavirus on our daily lives and livelihoods rapidly evolves, below are the latest measures released by the Government to reduce both the impact to the nations health, economy, household and business finances.
At times like these it’s important to have someone to talk to, so we urge you to contact us if you have concerns about your finances.
The JobKeeper Payment has been extended by a further six months to March 2021, targeting support to those organisations which continue to be significantly impacted by COVID-19.
From 28 September 2020, eligibility for the JobKeeper Payment will be based on actual turnover in the relevant periods. The payment rate will be reduced and a lower payment rate will be introduced for those who work fewer hours. Other eligibility rules remain unchanged.
Organisations seeking to claim the JobKeeper Payment, will be required to reassess their eligibility and demonstrate a significant decline for the JobKeeper Payment extension with reference to their actual GST turnover, relative to comparable periods to receive payments after 27 September 2020.
Organisations will need to demonstrate they have met the relevant continuing decline in GST turnover for both the June and September quarters 2020 to be eligible for JobKeeper Payment from 28 September 2020 to 3 January 2021.
In order to be eligible for the second JobKeeper Payment extension period of 4 January 2021 to 28 March 2021, organisations will again need to demonstrate their actual GST turnover has significantly fallen in the June, September and December 2020 quarters relative to comparable periods.
JobKeeper payment rates
The JobKeeper Payment rate payment will be stepped down and paid at two rates rather than the previous flat payment to better reflect the pre-COVID 19 income of recipients.
The rates are based on the amount of hours worked by eligible employees and for business participants who were actively engaged in the business in the four weeks before 1 March 2020.
|Eligible employees who worked 20 hours or more a week* –||Eligible employees who worked less than 20 hours per week* –|
|From 28 September 2020 to 3 January 2021||$1,200 per fortnight||$750 per fortnight|
|From 4 January 2021 to 28 March 2021||$1,000 per fortnight||$650 per fortnight|
* in the four weeks before 1 March 2020.
Businesses and not-for-profits will be required to nominate which payment rate they are claiming for each of their eligible employees or participant.
The JobKeeper Payment will continue to be made by the ATO to employers in arrears and employers will be required to continue to make payments to employees equal to or greater than the JobKeeper payments.
Call us today if you need help managing your business cashflow or applying for government financial assistance during the current crisis.
Information in this article has been sourced from the Treasury website: https://treasury.gov.au/coronavirus/jobkeeper/extension
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