What does the reinforced eligibility requirement entail?
To support businesses amidst the ongoing economic challenges, the Australian government has extended the JobKeeper scheme until 28 March 2021, with updated eligibility criteria and payment rates based on hours worked and GST turnover.
Suffice evidences GST turnover has fallen
Eligibility now requires businesses to demonstrate a GST turnover drop of more than 25%, and employees must have been employed on 1 July 2020 to qualify.
2-Stage Reduction in Payment Rates
Payment rates will be reduced in two stages: $1,200 per fortnight from 28 September 2020 to 3 January 2021, and $1,000 per fortnight from 4 January 2021 to 28 March 2021
Payment Tiers for Employees
Employee eligibility for payment tiers is based on their average weekly hours worked in the four weeks before 1 March 2020 or 1 July 2020.
Australian government recently decided to extend the JobKeeper scheme until 28 March 2021 in response to the current economic turmoil brought about by pandemic, and to support on-going businesses.
With the reinforced eligibility requirement for scheme to be granted, businesses will have to suffice evidences that their GST turnover has fallen by more than a quarter. In the same manner, employees will be eligible for the payment extension if they were employed on 1 July with effect from 3 August this year. The JobKeeper will remain open to qualifying businesses, the self-employed and not-for-profits.
Employee Eligibility
The reference date to determine the JobKeeper eligibility is now 1 July 2020 with effect from 3 August 2020.
The period for reference to determine payment tier for employees regarding their hours worked will be the two fortnightly pay period before 1 March 2020 or 1 July 2020. Whichever period has the highest number of hours is to be used for employees who are eligible at 1 March 2020.
Payment Cuts
The decision to lower the payment rate was due to the aggravating COVID-19 cases in Victoria, with about 1.5 million Victorian employees expected to use the JobKeeper, or equivalent to nearly half the workforce in the private sector across the entire state itself.
The extended Jobkeeper subsidy sets specific thresholds and parameters for both employers and employees for eligibility.
Payment tiers will be different than when the Jobkeeper subsidies were first introduced.
Period 1 (28 September 2020 to 3 January 2021)
Rate: $1,200 per fortnight
Eligibility: Workers who work 20 hours or more in a week on average in the four weekly pay period before the reference period
Participants who actively engage in the business for more than 20 hours a week
Rate: $700 per fortnight
Eligibility: Workers who work less than 20 hours or more in a week on average in the four weekly pay period before the reference period
Participants who actively engage in the business for less than 20 hours a week
Period 2 (4 January 2021 to 28 March 2021)
Rate: $1,000 per fortnight
Eligibility: Workers who work 20 hours or more in a week on average in the four weekly pay period before the reference period
Participants who actively engage in the business for more than 20 hours a week
Rate: $650 per fortnight
Eligibility: Workers who work less than 20 hours or more in a week on average in the four weekly pay period before the reference period
Participants who actively engage in the business for less than 20 hours a week.
Read Extension of the JobKeeper Payment for more information.
