JOBKEEPER EXTENSION ANNOUNCEMENT
JOBKEEPER EXTENSION ANNOUNCEMENT
On Tuesday 21 July 2020, the Australian Federal Government released new rules on the JobKeeper wage subsidy scheme to effectively extend the scheme for a further six months until 28 March 2021. With new testing requirements and reduced cash payments, the government has dubbed this ‘JobKeeper Version 2’ or the ‘JobKeeper Extension’.
The main changes are:
- The existing JobKeeper rules will continue to apply as originally introduced until 27 September 2020;
- The new JobKeeper Extension will apply for an additional 6 months from 28 September 2020 until 28 March 2021;
- The current $1,500 per fortnight JobKeeper subsidy is to be reduced with effect from 28 September 2020 under a two tiered approach and also based on average working hours as at 1 March 2020 (see below for further details);
- Under the JobKeeper Extension, the decline in turnover tests will now be based on actual rather than projected turnover (see below for further details);
- The existing JobKeeper and JobKeeper Extension will continue to be available to new participants in the scheme provided they meet the relevant tests. This includes carrying on a business and having eligible employees as at 1 March 2020.