The JobKeeper wage subsidy has been extended until Christmas, however, this would be at a reduced rate of over $1000 a fortnight for companies that qualify under a new, tighter, eligibility test.

The JobKeeper scheme, which was due to expire in late September has been extended until the end of the year which stricter requirements and lesser payout. Casuals will also no longer secure a flat-rate payment regardless of whether they are full-time or part-time under the JobKeeper’s second phase. Instead, casuals and part-time workers will secure a part-time rate of the JobKeep subsidy.

A new turnover test will also apply to JobKeeper when the current scheme ends on September 27, to ensure that companies that have bounced back from COVID-19 shutdowns are removed from the program and target companies that most need support. Companies that qualify for JobKeeper are guaranteed support until the current scheme ends in September and will not be kicked off income support early.

Companies that are currently securing JobKeeper will be guaranteed payments until the current scheme ends on September 27. After that date, companies will need to prove they are still being hit by the impact of COVID-19 shutdowns in the tourism industry, or in restaurants and cafes in Melbourne. They need to prove that turnover is down by 30 per cent but only needs to prove it once to qualify for payments until September. This means that a company that was hit hard in April but bounced back to normal trading in June is still eligible for the $1500 a fortnight payment for each employee.

Companies may be required to submit monthly updates on turnover to the Australian Taxation Office to prove cashflow is down. This would make it easy to “flick the switch” and scrap JobKeeper for companies that no longer needed it.

Date published: July 20, 2020
Source: News.com.au