JobKeeper Extension Program

The JobKeeper scheme has been extended from 28 September 2020 until 28 March 2021

The JobKeeper extension has passed — There will be important changes to the wage subsidies. Here’s what you need to know.

There are two separate extension periods. For each extension period, an additional actual decline in turnover test applies and the rate of the JobKeeper payment is different.

The extension periods are:

 

Payment rates will change

The rate of the JobKeeper program, and its payments, will change for each extension period. This will depend on the number of hours:

  • an eligible employee works, or
  • an eligible business participant is actively engaged in the business.

It will be split into two rates.

These rates include:

Tier 1 rate: Tier 2 rate:
This rate applies to:

  • eligible employees who worked for 80 hours or more in the four weeks of pay periods before either 1 March 2020 or 1 July 2020, and
  • eligible business participants who were actively engaged in the business for 80 hours or more in February and provide a declaration to that effect.
This rate applies to:

  • any other eligible employees and eligible business participants.

 

Employers and businesses will need to nominate the rate they are claiming for each eligible employee and/or eligible business participant.

 

This extension period will be active between 28 September 2020 to 3 January 2021.

You will need to provide documentation that proves that your actual GST turnover has declined in the September 2020 quarter. This will be relative to a comparable period, which will most commonly be the 2019 corresponding quarter. Depending on the nature of your business.

The rates of the JobKeeper payment in this extension period are:

  • Tier 1: $1,200 per fortnight (before tax)
  • Tier 2: $750 per fortnight (before tax).

 

JobKeeper Extension 2

This extension period will be active between 4 January 2021 to 28 March 2021.

You will need to provide documentation that proves that your actual GST turnover has declined in the December 2020 quarter. This will be relative to a comparable period, which will most commonly be the 2019 corresponding quarter. Depending on the nature of your business.

You, and/or your business, can be eligible for the second JobKeeper extension even if you were not eligible for the first JobKeeper extension.

The rates of the JobKeeper payment in this extension period are:

  • Tier 1: $1,000 per fortnight (before tax)
  • Tier 2: $650 per fortnight (before tax).

 

What you need to do

For the best chances to claim the JobKeeper extension, from the 28th of September 2020, you must do all of the following:

  • Begin working out if the Tier 1 or Tier 2 rate applies to your eligible employees. Including, but not limited to, all eligible business participants and/or eligible religious practitioners.
  • Notify us, and all of your eligible employees, eligible business participants, and/or eligible religious practitioners which payment rate applies to them.
  • During the first JobKeeper extension – Ensure all eligible recipients are paid at least
    • $1,200 per fortnight for tier 1 employees
    • $750 per fortnight for tier 2 employees
  • During the second JobKeeper extension – Ensure all eligible recipients are paid at least
    • $1,000 per fortnight for tier 1 employees
    • $650 per fortnight for tier 2 employees.

 

What doesn’t change

Claims for fortnightly periods in the first and second JobKeeper extensions.

To claim:

  • You don’t need to re-enrol for the JobKeeper extension if you are already enrolled for JobKeeper for fortnights before 28 September.
  • You don’t need to reassess employee eligibility or ask employees to agree to be nominated by you as their eligible employer if you are already claiming for them before 28 September.
  • You don’t need to meet any further requirements if you are claiming for an eligible business participant, other than those that applied from the start of JobKeeper relating to
    • Holding an ABN, and
    • Declaring assessable income and supplies.

 

New JobKeeper participants

The JobKeeper program will remain open to new participants. Providing that they meet all eligibility requirements for each relevant period.

For new information on the JobKeeper extensions, we will update this page in the future. So, check back frequently to see new updates as they are reported.