The Federal Government recently announced an easing of eligibility criteria for JobKeeper in response to the continuing COVID-19 crisis. This is in addition to July’s announcement that JobKeeper support would continue until March 2021.
That extension to the program was going to mean stricter requirements for businesses when proving the impact of COVID-19 on their revenue. These requirements have now eased.
Before this latest announcement, a business with an aggregated annual turnover of $1 billion or less would have needed to prove at least a 30% decrease in turnover during each of the June and September to qualify for JobKeeper support between 28 September and 3 January. Instead, a business will now need to show that revenue dropped for the September quarter.
To receive support between 4 January and 28 March, a business will now only need to show a downturn in revenue for the December quarter – not the June and September quarters as well.
These relaxed eligibility requirements are set to cost the Government an additional $15 billion, with the total cost of the JobKeeper scheme now estimated to be over $100 billion.
JobKeeper payments will be reduced in September from $1500 to $1200 a fortnight for full-time employees, and from $1500 to $750 for part-time employees. This will be cut again to $1000 for full-time and $650 for part-time in January.
For more information about the extension of the JobKeeper scheme and changes to eligibility for small businesses, visit: www.ato.gov.au/general/jobkeeper-payment/employers/
And for more information regarding the extension new eligibility rules for sole traders, visit: www.ato.gov.au/General/JobKeeper-Payment/Sole-traders/
The above information is a brief summary only and does not take into account your personal needs and is not a substitute for independent professional advice. We strongly recommend that you speak to your accountant as they will be able to provide you the most suitable advice for your individual circumstance and to ensure that you are also always receiving the most up to date information.
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