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JobKeeper Extension

JobKeeper Extension

Updated: 02/11/2020

The circus is still in town and the JobKeeper ferris wheel is still turning… Here’s what you need to think on for the proposed JobKeeper Extension.

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The JobKeeper Payment was due to end on 27 September 2020 (v1.0) and has been extended (v2.0) to 28 March 2021 at a reduced rate for businesses still suffering the 30% downturn.

If you’re a business owner and feel you’re still in a downturn, you may be eligible for the Extension.

Have you thought of what happens after JobKeeper? Whether at the end of September or after your extension period, what happens to you and your business when the payments stop. Read on for tips.

KEY TAKEAWAYS:

  • The JobKeeper Extension is cut across the Oct-Dec 2020 quarter (v2.1) and Jan-Mar 2021 quarter (v2.2) with a 30% downturn re-test required before each extension period based on actual sales for the quarter prior.

  • You can opt-in at any time by enrolling in the JobKeeper scheme. If you’re already in, you won’t need to re-enrol for the Extension when coming to complete your October Declaration.

  • The start date of employment test is now 1 July 2020 (for permanent employees or 12mths prior for casuals) which may increase the eligibility for some of your staff (v1.5). This was relevant in the August Declaration and continues into the Extension.

  • The amounts paid per employee/business participant will be reduced from the $3,000/month you may have been used to after September. The subsidy rate is on the decline over the next two extension periods based on if your employees work over or under 80hrs per month. See below table for Tier 1 and 2 rates.

  • Your employees must be paid a minimum of their respective Tier 1 or Tier 2 rate based on their hours worked. A reduced amount but the same “TOP-UP” approach if they aren’t already paid over and above JobKeeper.

  • If you’re an employee on JobKeeper, talk to your employer to see if this extension affects you and your employment.

Key Dates

Extension 1: 28 September 2020 to 3 January 2021

  • Tier 1: $2,400 per month ($1,200 per fortnight)

  • Tier 2: $1,500 per month ($750 per fortnight)

Extension 2: 4 January 2021 to 28 March 2021

  • Tier 1: $2,000 per month ($1,000 per fortnight)

  • Tier 2: $1,300 per month ($650 per fortnight)

The JobKeeper Scheme

Life After JobKeeper

What about life after JobKeeper if you won’t qualify for the Extension? Has your business become a JobKeeper Zombie and is being kept alive by JobKeeper? How will your business survive? Can you afford to keep all your staff at the hours they’re currently doing?

Consider your staff and the obligations you have to them for your employees when the support of the JobKeeper subsidy ceases. Will you need to cut hours? Commence redundancy processes? How to do this fairly without unfair dismissal or discrimination issues. You need to think about this before your JobKeeper ceases rather than waiting until it ends, whether that’s the initial scheme or the extension, to avoid wasting more money and time by not addressing the issues with your staffing.

For more business chat, check out our Keep Your Business Going article.