JobKeeper Update

Posted 20 Jul

JobKeeper Update

In an announcement today, 21 July 2020, Scott Morrison released an update regarding JobKeeper 2.0 from the end of September. 

From 28 September 2020, there will be significant changes to the JobKeeper structure. We have summarised the changes below:

  • Nothing changes until 27/09/2020.  If you are receiving JobKeeper currently then you continue to receive it until this date, with no new tests!
  • To qualify for the December 2020 JobKeeper, businesses must meet the decline in turnover test for each of the June and September 2020 quarters.
  • To qualify for the March 2021, JobKeeper, businesses must meet the decline in turnover test for each of the June, September and December 2020 quarters.
  • The flat $1,500 payments will be replaced by a new two-tiered payment system to reflect the pre-COVID working hours of employees.
 

20+ hours a week

< 20 hours a week

Until 27 Sept 2020

$1,500 a fortnight

$1,500 a fortnight

From 28 Sept 2020

$1,200 a fortnight

$750 a fortnight

From 4 Jan 2021

$1,000 a fortnight

$650 a fortnight


We believe that most businesses will not meet the eligibility criteria under this new program, due to the JobKeeper and Jobseeker cash injection boosting consumer spend (as it was intended to do), impacting the May and June quarters. It is important to note that employers eligible under the current JobKeeper program may not necessarily be eligible under the extended program.


Tourism industry businesses and other locked down industries are the target with JobKeeper 2.0.


What if you’re no longer eligible?


You need to consider how your business will look without the JobKeeper support and what challenges you face going into the future – Cash is king. 

Now is the time to start thinking about how your business will operate from 28 September. For some business owners this might look and feel a little scary. If this is you, we encourage you to call our office and book a strategy meeting with your Accountant to discuss your options.

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