JobKeeper 2.0 – Changes coming in September
The government has announced changes to the JobKeeper scheme. The Treasury’s review found that the subsidy is still “needed” but required a “test to ensure that JobKeeper is well targeted”.
Be prepared
This means there will be changes to your current situation and your entitlements will be affected. The details of the changes are being announced now and we will ensure our clients are fully informed as to how this will affect them once we have processed the finer details of these changes.
What’s changing?
The JobKeeper subsidy has been extended to March 2021, but with some changes. Here is an overview of what’s changing and when.
JobKeeper 2.0
The next phase of JobKeeper will start at the end of September at a reduced rate. The subsidy will reduce from $1500 per fortnight to $1200 per fortnight for full-time workers and those working more than 20 hours per week. For those working less than 20 hours per week will receive $750 per fortnight. This will be based on the number of hours worked in February (pre-coronavirus).
JobKeeper 3.0
From 4th January 2021, these payments will fall to $1000 per fortnight and to $650 per fortnight for those working less than 20 hours per week.
A new test to see if businesses are eligible
From October, the payment will be subject to a new eligibility test which assesses whether the business recovered in the last 6 months.
Reassessments in October and January
From 28 September 2020, organisations seeking to claim JobKeeper payments will be required to reassess their eligibility for the JobKeeper extension with reference to their actual turnover in the June and September quarters 2020. Organisations will need to demonstrate that they have met the relevant continuing decline in turnover test in both of those quarters to be eligible for JobKeeper from 28 September 2020 to 3 January 2021.
Organisations will need to further reassess their eligibility in January 2021 for the period from 4 January to 28 March 2021. Organisations will need to demonstrate that they have met the relevant continuing decline in turnover test in each of the previous three quarters to remain eligible for the March 2021 quarter.
Please note: details surrounding these changes are yet to be legislated so they are subject to change. As more details come to hand, we will pass them on.
Thank you
Once again we thank you for your support and request your patience as we work through these next set of changes and its ramifications for you.
Once we have all the information on hand from the Government, the ATO and our professional body, The Institute of Certified Bookkeepers (ICB), and have understood what it means for you, we’ll be in touch.
What’s next?
Take the time now to prepare for the future. It would be wise to prepare a budget and cashflow forecast now to ensure you are ready for these changes that are coming. We are happy to help on this front so please get in touch if you have any questions.