This morning Treasurer Josh Frydenberg has announced hundreds of thousands more Victorians will be eligible for the JobKeeper wage subsidy, under changes worth an extra $15 billion.
Here are the details:
From 28 September 2020, businesses and not-for-profits seeking to claim JobKeeper Payments will be required to re-assess their eligibility for the JobKeeper extension with reference to their actual turnover in the September quarter 2020. Businesses and not-for-profits will need to demonstrate that they have met the relevant decline in turnover test in this quarter to be eligible for JobKeeper from 28 September 2020 to 3 January 2021.
Businesses and not-for-profits will need to further reassess their eligibility in January 2021 for the period from 4 January to 28 March 2021. Businesses and not-for-profits will need to demonstrate that they have met the relevant decline in turnover test in the December quarter 2020 to remain eligible for the March quarter 2021.
Clients who have been impacted by the Stage 4 Restrictions and need to close or scale back their operations in August 2020 (who may not have previously been eligible), can still apply now for the first Jobkeeper tranche that runs until 28 Sept.
The reference date for assessing which employees are eligible for the JobKeeper Payment is now 1 July 2020 with effect from 3 August 2020. The reference period for employees regarding their hours worked to determine their tier of payment will be the two fortnightly pay periods prior to 1 March 2020 or 1 July 2020. The period with the higher number of hours is to be used for employees who were eligible at 1 March 2020.
JobKeeper Payment rate
The JobKeeper Payment rate is to be reduced and paid at two rates:
The changes will apply across the country, meaning some businesses in other states will qualify, however Mr Frydenberg said he expected $13 billion of the money to flow to Victoria.
“We believe that about 530,000 extra Victorian employees will now join the JobKeeper program over the September quarter, that means 1.5 million Victorian employees will be using JobKeeper,” he said. “That’s nearly half of the private sector workforce across the whole state.”
Should you have any questions or need any help ensuring you receive all available assistance, please reach out to our team and we will endeavour to do our best to assist.
The Team at Rose Partners