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Important Updates to the JobKeeper Payment

Categories: Accounting & Tax
21 July 2020

Today the Federal Government provided an update to the future of the JobKeeper program. Important changes include the following: 

  • The JobKeeper program will continue beyond the initial end date in September. It will now carry through until the end of March 2021. 
  • A 30% turnover reduction test must be reapplied for both the December 2020 and March 2021 quarters. 
  • There will be a new two-tiered payment system dependant on an employee’s hours worked. E.g. If an employee works more than 20 hours per week they will be entitled to a higher rate.
  • After September, payments will be reduced to $1,200 (more than 20 hours worked) or $750 (less than 20 hours worked) for the December quarter. This will be reduced to $1,000 or $650 respectively in the March quarter. 

 

The current JobKeeper program has supported 960,000 businesses and 3.5 million workers, and helped 44% of businesses from sacking staff.

These recent amendments are intended to lower the number of businesses that are eligible to claim JobKeeper payments. There are currently 3.5 million workers covered under JobKeeper. The Treasurer expects the new eligibility rules to see the figure fall to just 1.4 million workers for the December 2020 quarter, before dropping to 1 million workers in the March 2021 quarter.

Kensington Partners will continue to keep all of our clients informed as to any additional changes when the finer details become available over the coming weeks. 

If you have any questions regarding these updates or would like to talk with one of our experienced advisors about what this could mean for your business, contact us today.

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