JobKeeper 2.0: What employers need to know

The federal government has extended the JobKeeper wage subsidy to March 2021, with moves to recalibrate the amount being paid out and reassess employers’ eligibility periodically. The changes will be made to ensure a “better approach to sectoral targeting,” according to the Treasury.

The extension dubbed JobKeeper 2.0 will end on 28 March next year but will require employers to undergo two turnover tests to receive funding through the end of the program in 2021.

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To qualify for payments covering 28 September to 3 January 2021, employers will need to prove their actual turnover in April-June and July-September declined by:

• 50% for those with an aggregated turnover of more than $1bn;
• 30% for those with an aggregated turnover of $1bn or less; or
• 15% for Australian charities and not-for-profit commission-registered charities (excluding schools and universities)

To continue receiving payments covering 4 January to 28 March 2021, businesses and not-for-profit groups will need to prove they experienced the same rate of decline through December this year.

Qualified employers should also prepare for the gradual decrease in upcoming payouts.

Starting from 28 September, the flat rate of $1,500 given fortnightly will become:

• $1,200 fortnightly for employees who worked an average of 20+ hours per week (in the four weeks prior to 1 March); and
• $750 fortnightly for those who worked fewer than 20 hours per week for the same period.

Read more: JobKeeper: Employers should 'proceed with caution'

The amount of subsidy will continue to fall by 4 January 2021:

• $1,000 fortnightly for employees who worked an average of 20+ hours per week;
• $650 fortnightly for those who worked fewer than 20 hours per week.

“The JobKeeper payment will continue to be made by the [Australian Taxation Office] to employers in arrears. Employers will continue to be required to make payments to employees equal to, or greater than, the amount of the JobKeeper payment (before tax), based on the payment rate that applies to each employee,” the Treasury said.