The federal government has again changed the rules for the JobKeeper wage subsidy which it says will make more employers and employees eligible for the coronavirus support.
Under the turnover test revisions, employers with $1 billion or less annual turnovers wishing to qualify for JobKeeper for the October, November and December quarter will by September 28 need to show an actual 30 per cent revenue decline for the previous quarter to access the scheme.
The same assessment will be required again by January 4, 2021 in order for businesses to continue to access JobKeeper for the first quarter of 2021.
The number of employees that will be eligible for the subsidy will also be increased as it now covers staff that commenced employment from July 1, instead of March 1.
Ai Group CEO Innes Willox says the broader eligibility will be a lifeline for many businesses, particularly those in Victoria.
“The extensive shutdown of the Victorian economy in response to the sharp increase in COVID-19 cases has dramatically altered the outlook for both the Victorian and the national economy and today’s announcement will be a lifeline for many businesses and their employees over coming months,” Willox said.
“The changes mean that many thousands of employers and employees not previously eligible for JobKeeper will become eligible from the end of September. This will be of particular benefit to businesses and employees adversely affected by the Victorian shutdown whether these impacts are direct or indirect.”
Payment rate reduction
The other significant change has been the move to reduce the rate of JobKeeper.
From the end of September, the wage subsidy will be $1,200 per fortnight for employees that worked 20 hours or more a week on average during either February or June and $750 per fortnight for each other eligible employee.
For more information on the rules, please refer to the ATO website, here.
For a full fact sheet on the JobKeeper revisions from Treasury, please click here.
Prime Minister Scott Morrison says the amendments to the JobKeeper scheme will help more businesses qualify for the support.
“Australia is facing a situation that is constantly changing. Our response is to get the right support to all those Australian families, workers and businesses that need us, as these circumstances change,” Morrison said.
“This means more support for more workers and more businesses for longer, as we battle this latest
Victorian wave.”
Treasurer Josh Frydenberg Treasurer Josh Frydenberg said the current situation in Victoria will have severe economic impacts on both the Victorian and Australian economies.
“Already more than 270,000 businesses covering around 975,000 employees in Victoria are being
supported by the Morrison Government’s JobKeeper Payment,” Frydenberg said.
“To help keep more businesses in business and Australians in jobs through this incredibly challenging period, the Government will ease the eligibility criteria to make it easier for organisations to qualify for the JobKeeper extension from 28 September 2020.
“These changes will add to the $15 billion the Morrison Government has already contributed to the
Victorian economy through JobKeeper and small business CashFlow boost payments.”
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