Jobkeeper 3.0 Extension
Last updated 1 October 2020
On 21 July 2020, the Government announced that the JobKeeper Payment would be extended until 28 March 2021 (i.e., for a further 6 months beyond its original end date 27 September 2020).
As a result, the JobKeeper Payments would now be made over 2 separate extension periods, being:
- Extension period 1 – which covers the seven new JobKeeper fortnights that commence on 28 September 2020 and end on 3 January 2021; and
- Extension period 2 – which covers the six new JobKeeper fortnights that commence on 4 January 2021 and end of 28 March 2021.
From 28 September 2020, the revised Jobkeeper Scheme would be less generous and would require businesses and not-for-profits to apply a new ‘Decline in Turnover Test’ based on their actual GST turnover.
FAQ's
Extension period 1: 28 September 2020 to 3 January 2021
Extension Period 2: 4 January 2021 to 28 March 2021
Extension period 1:
- Tier 1 rate will be $1,200 per fortnight for all eligible employees and business participants who were working in the business 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.
- Tier 2 rate will be $750 per fortnight for all other eligible employees and business participants.
Extension period 2:
- Tier 1 rate will be $1,000 per fortnight for all eligible employees and business participants who were working in the business 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.
- Tier 2 rate will be $650 per fortnight for all other eligible employees and business participants.
Yes, as of 3 August 2020 the key dat for assessing employee eligibility is now 1 July 2020 rather than 1 March 2020. 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.
Click here for more information.
In order to be eligible for the JobKeeper extension, businesses and not-for-profits will have to meet a further decline in turnover test for each of the two periods of extension, as well as meeting the other existing eligibility requirements for the JobKeeper Payment.
To be eligible for JobKeeper payments under the extension, businesses and not-for-profits will need to demonstrate that they have experienced the following decline in turnover (which remains the same percentage as the existing rules):
- 50% for those with an aggregated turnover of more than $1 billion;
- 30% for those with an aggregated turnover of $1 billion or less; or
- 15% for Australian Charities and Not-for-profits Commission-registered charities (excluding schools & universities)
In order to be eligible for the Jobkeeper Extension period 1, businesses and not-for-profits will need to demonstrate that their actual GST turnover has fallen in the September quarter 2020 (July, August, September) relative to a comparable period (generally the corresponding quarter in 2019)
In order to be eligible for the JobKeeper Extension period 2, businesses and not-f0r-profits will need to demonstrate that their actual GST turnover has fallen in the December quarter 2020 (October, November, December) relative to the comparable period (generally the corresponding quarter 2019)
Click here to calculate your GST turnover
The payments will be made by the ATO monthly in arrears. You will need to declare your monthly income between the 1st – 14th of the month after.
i.e. Declaring October income between 1st – 14th of November.
This information is current as of the latest updated date, however due to the evolving response to the crisis, we will update as changes occur.