The Government has announced changes to the JobKeeper scheme. The Treasury’s review found that the subsidy was still “needed” but required a “test to ensure that JobKeeper is well targeted”. The existing scheme will continue until 27 September 2020 as first announced however, beyond that there will be changes.
This means there may be changes to your current situation and your entitlements may be affected. The details of the changes are being announced now and we will ensure our clients are fully informed as to how this will affect them once we have processed the finer details of these changes.
The JobKeeper subsidy has been extended to March 2021, but with some changes. Here is an overview of what’s changing and when.
The next phase of JobKeeper will start at the end of September at a reduced rate. The subsidy will reduce from $1500 per fortnight to $1200 per fortnight for full time workers and those working more than 20 hours per week. Those working less than 20 hours per week will receive $750 per fortnight. This will be based on the amount of hours worked in February 2020 (pre-coronavirus).
From 4th January 2021 these payments will fall to $1000 per fortnight and to $650 per fortnight for those working less than 20 hours per week.
A new test to see if businesses are eligible
From October, the payment will be subject to a new eligibility test which will assess whether the business has recovered in the last six months.
Reassessments in October and January
In early October, businesses will need to prove they’re in financial distress (showing a decline of at least 30%) in the June 2020 quarter in order to be eligible for the October – December scheme.
This will need to be proven again in early January 2021 based on September 2020 quarter figures.
Please note: details surrounding these changes are yet to be legislated so they are subject to change. As more details come to hand, we will pass them on to you.
Once again we thank you for your support and request your patience as we work through this next set of changes and the ramifications for you.
Once we have all the information on hand from the Government and the ATO and have understood what it means for our clients, we will contact you with more detailed information.
Take the time now to prepare for the future. It would be wise to prepare a budget and cashflow forecast now to ensure you are ready for the changes that are coming if you believe they may impact you and your business. We are here to help on this front so please contact our Accounting, Tax & Business Advisory team if you have any questions.