Key Points:

• The federal government has announced the JobKeeper Payment will be extended to 28 March 2021
• From 28 September 2020, eligible employees and business participants, working less than 20 hours per week on average, will receive the payment at a lower rate
• From 28 September 2020, eligible employees and business participants, working full time, will also receive payment a lower rate

The federal government has announced the JobKeeper Payment will be extended to 28 March 2021 and also extended the temporary Coronavirus Supplement to 31 December 2020.

JobKeeper Payment

The JobKeeper Payment is set to continue and will be available to eligible businesses (including the self-employed) and not-for-profits until 28 March 2021, costing the economy an additional $16.6b.

However, from 28 September 2020, eligible employees and business participants, working less than 20 hours per week on average, will receive the payment at a lower rate. Average hours per week will be based on the four weekly pay periods ending before 1 March 2020.

Fortnightly payment rates are also due to change. Currently each FT employee receives $1,500 per fortnight however, from 28 September 2020, the following new rates will apply for eligible employees and business participants:

From 28 September 2020, employers will also be required to reassess their eligibility by reference to their actual June and September quarter turnovers and reassess their eligibility again for the March 2021 quarter.  An entity’s eligibility prior to 28 September 2020 will not be affected if the additional turnover tests for the extension period are not met.

Further, they will also be required to nominate the payment rate claimed for each of their eligible employees or business participants.

The ATO will provide guidance on circumstances that are not addressed under the general rules for determining average hours per week.

Coronavirus Supplement for Income Support Recipients

The payment period of the temporary Coronavirus Supplement has been extended to 31 December 2020 and is expected to cost the economy an additional $3.8b.

Eligible income support recipients will continue to receive the payment at a rate of $550 per fortnight, up to and including the period ending 24 September 2020.

The payment rate will be reduced to $250 per fortnight for the period from 25 September 2020 to 31 December 2020.

The Coronavirus Supplement will continue to be paid to existing and new recipients of certain income support payments.

If you have any questions or need advice and clarity specific to your business, feel free to contact Semmens & Co on 03 8320 0320 for a free consultation.