The government has recently announced changes to Job Keeper eligibility tests that your business needs to be aware of, both in terms of the eligibility test for your business and also what you might pay your employees ( if applicable).
This infographic below from Chartered Accountants ANZ provides a great snapshot of JobKeeper 1.0 and what is now JobKeeper 2.0.
In a nutshell, JobKeeper 1.0 will remain till 27 September 2020 and thereafter, JobKeeper 2.0 will continue for a further six months till 28 March 2021. The temporary JobSeeker coronavirus supplement will be extended to 31 December 2020.
The thresholds for the decline in turnover test will remain the same but now the test must be applied at several points:
The requirement to reassess the eligibility for the JobKeeper payments over the extension period is to ensure that only the businesses that need the most help will continue to receive the payments.
The JobKeeper payment will remain open to new recipients provided they meet the existing eligibility requirements and the additional turnover tests during the extension period.
The amount of JobKeeper payment will be tapered in the December and March quarters to encourage businesses to adjust to the new environment, supporting a gradual transition to economic recovery.
The two-tiered payment aims to better align the payment with the incomes of employees before the onset of the COVID-19 pandemic.
The Commissioner of Taxation will have discretion to set alternative tests where an employee’s or business participant’s hours were not usual during the February 2020 reference period.
Employers will continue to be required to make payments to employees equal to, or greater than, the amount of the JobKeeper payment (before tax), based on the payment rate that applies to each employee (i.e. the wage condition).
The changes are expected to be implemented through amendments to legislation and the legislative instrument, Coronavirus Economic Response Package (Payments and Benefits) Rules 2020
If you have any questions in relation to your business or employee eligibility, please get in contact with us.
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