Australia

JobKeeper eligibility changes announced

On Tuesday 21 July 2020 the Australian Government announced a proposed extension of the JobKeeper Payment Scheme from 28 September 2020 until 28 March 2021.

As of 3 August 2020, two further changes were implemented by the Australian Government to ease JobKeeper eligibility criteria.

The two important changes made are in relation to:

  1. Employer eligibility for the extension of the scheme; and
  2. Date for determining employee eligibility for both the existing scheme and the extension of the scheme has changed from 1 March to 1 July 2020.

Employer Eligibility

To receive the first JobKeeper Payment Extension (JobKeeper 2.0) from 28 September 2020 to 3 January 2021, a business will need to ONLY demonstrate that their actual GST turnover has fallen in the September quarter 2020 relative to a comparable period (generally the corresponding quarters in the previous year).

To receive the second JobKeeper Payment Extension (JobKeeper 2.0) from 4 January 2021 to 28 March 2021, a business will need to ONLY demonstrate that their actual GST turnover has fallen in the December quarter 2020 relative to a comparable period (generally the corresponding quarters in the previous year).

Employee Eligibility

From 3 August onwards, the relative date for determining employee eligibility is 1 July 2020 for both the existing scheme and the extension of the scheme.

From 28 September 2020 onwards, an employee’s eligibility to receive the JobKeeper Payment Extension will also depend on the amount of hours the employee worked in the four weeks of pay periods before either 1 March 2020 or 1 July 2020.

In the below graphic we have summarised the latest changes to the JobKeeper Payment according to the 2 tiers of payments for eligible employees and the further changes announced in regards to both employer and employee eligibility.

For full details of the extension and latest changes of the JobKeeper Payment Scheme, please refer to the Australian Government Treasury website.

* Please note that the above information regarding the announcement of changes to both the existing scheme and the extension of the scheme has not yet passed through legislation.

Article first published by Allan Hall Business Advisors, Australian members of Alliott Group, on 12 August 2020 as Further JobKeeper Changes: What You Need to Know. Contact the team at Alliott NZ for further assistance or an introduction.