JobKeeper 2.0 Update
The economic impact of Victoria’s second round of lockdowns has forced the Federal Government to increase access to JobKeeper 2.0.
Cabinet has given approval to add more funding ($15.6 billion) to JobKeeper. The total of the JobKeeper assistance package is now $101 billion dollars.
The Federal Government is hoping the funding will assist the 240,000 Australians who are expected to lose their jobs between now and Christmas.
Let’s look at the changes.
First – Business Turnover Test.
Previously, businesses had to prove they were down in turnover (to the requisite amounts) in both the June & September quarters to be eligible for JobKeeper in the December quarter.
The amended turnover test means businesses need to provide evidence of a turnover decline in the September quarter only to receive Job Keeper in the December quarter.
Similarly, businesses will receive JobKeeper in the March quarter if they meet the eligibility test in respect of their actual GST turnover for the December quarter.
Secondly – Employee Eligibility Test.
Previously, employees had to be on the books from the 1st of March to be eligible for JobKeeper payments. The amendment means that employees on the books from the 1st of July are now eligible for JobKeeper payments.
There has been no change to the stepdown in JobKeeper payments which will commence from 28 September.
- The current $1500 payment per fortnight will reduce to $1200 per fortnight from 28 September.
- From 4 January the payment will be $1000 per fortnight. This is for employees working 20 hours per week or more.
- An employee working less than 20 hours per week will see reduced payments to $750 per fortnight from 28 September and then to $650 per fortnight from 4 January.
JobKeeper is a national demand-driven program. An anticipated 50% of recipients of JobKeeper Australia wide, will be in Victoria. The changes to eligibility for the business turnover test and the employee test, is designed to help the hardest-hit region in Australia. “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,” Treasurer Josh Fydenburg said on 6 August 2020.
If you have any queries around JobSeeker 2.0, contact Bridgepoint Group.
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