COVID-19 JobKeeper Extension – Eligible Employees
As the proposed “JobKeeper Extension” is still an announcement and not yet legislation, you’ve not heard from me on the intricate details as these may change before the end of September.
What I do want to emphasise here is the update to eligible employees for the August fortnights and beyond.
COVID-19 JobKeeper Extension Summary
The following is announced/proposed:
- JobKeeper Payment originally due to finish 27th September 2020 to extend to 28th March 2021.
- For fortnights starting 3rd August 2020 employment date moves from 1 March to 1 July 2020. This increases employee eligibility for BOTH the existing JK Program and the JK Extension.
- For fortnights commencing 3rd August (F10) and 17th August (F11) a payment extension is granted to 31 August 2020 to include these employees (next Monday).
- Payment rate reduces from $1500 per fortnight to $1200 from 28th September 2020. (This applies to employees working in the business 20 hours or more per week in the 4 weeks before either 1 March or 1 July 2020. Employees working less than 20 hours, payment rate reduces to $750 per fortnight.)
- Payment rate reduces from $1200 per fortnight to $1000 from 4th January 2021. (This applies to employees working in the business 20 hours or more per week in the 4 weeks before either 1 March or 1 July 2020. Employees working less than 20 hours, payment rate reduces to $650 per fortnight.)
- From 28th September, and again from 4th January 2021, businesses will need to re-assess eligibility.
- Eligibility assessment for each JK extension period is comparison of GST turnover for July to September 2020, and October to December 2020 to the same periods in 2019.
- There is no change to 30% decline in turnover (where turnover under $1 Billion).
- JobKeeper Program will remain open to new recipients that meet eligibility requirements.
Employees Eligible from August Fortnights
- Currently employed (including stood down or re-hired).
Employed at 1 July 2020.
- Full-time, part-time, or long-term casuals (ie casuals regularly employed for 12 months at 1 July 2020).
- At least 18 years of age at 1 July 2020.
- Australian citizen, holder of a permanent visa residing continually in Australia 10 years or more, or a special class visa holder.
- Not receiving JobKeeper from another employer.
- Not receiving Paid Parental related payments or Workers Comp.
- Employed after 1 July 2020
- Left employment before 1 July 2020
- Nominated or agreed to be by another employer
During the course of this week as we review/prepare our clients JobKeeper Fortnights, we will contact you to advise if the employee eligibility changes highlighted above affect your STP lodgements for FN10 and FN11 due by the extension grant of 31st August 2020.
Where relevant, employees now captured under the JobKeeper Eligibility extension date of 1 July, will be required to complete a Nomination Form for your files.
If you have any questions at all regarding the JobKeeper Payment or financial and business matters surrounding COVID-19, please don’t hesitate to contact me at minnik.com.au/contact_us/
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