JobKeeper Update

Updated information 7 August 2020

Earlier this morning, the Morrison Government made an announcement regarding JobKeeper 2.0. 

The government has softened the eligibility criteria for the new JobKeeper 2.0 scheme, due to begin in late September, because there will be many businesses which recovered in the June quarter but collapsed again.

Under the nationwide changes, instead of having to demonstrate a requisite fall in turnover in both the June and September quarters to qualify for JobKeeper 2.0 ‪from September 28, businesses will only have to show a fall in the September quarter compared with the same quarter in 2019.  

And instead of having to demonstrate a requisite fall in turnover in all the June, September and December quarters to qualify for JobKeeper ‪for the three months from January 4, businesses will only have to show a fall in the December quarter compared with the same quarter in 2019.

There will be no change to the current fortnightly subsidy of $1500 ending on the 28 September. This will still be replaced by the new two-tiered subsidies to start on September 28 of $750/fortnight for those working fewer than 20 hours a week, and $1200/fortnight for those working longer hours. Workers employed as of July 1, 2020, will be eligible for the subsidy, an update from March 1, 2020, so those hired when conditions bounced back will be eligible.

Please note: Legislation has not been passed on JobKeeper 2.0 as yet. It is our prioirity to keep Trinity clients informed, so as further information becomes available we will update you.

We hope to run a webinar in the coming weeks to go through JobKeeper 2.0 and answer any questions you have. In the meantime, if you have any questions or require assistance please do not hesitate to contact us on 07 4041 6188. 

21 July 2020

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.

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.