Last week I provided an update on JobKeeper 2 and the very next day the government announced changes resulting in JobKeeper 3.
Everything I told you is still correct except that eligibility for the December quarter is now no longer dependent on a 30% reduction in turnover for the June quarter. Here is my blog from last week suitably amended:
The good news is that despite much speculation the current JobKeeper subsidy will continue to 27th September as originally announced.
The even better news is that the system will be extended to 28th March 2021, albeit with changes to both the eligibility criteria and the fortnightly payments. The big change is that to be eligible for the December quarter, actual turnover must be down 30% for the September quarter compared to the September 2019 quarter. To be eligible for the March quarter, turnover must be down 30% for both the September and December quarters compared to the same quarters in 2019.
It is important to note that turnover does not need to be down because of coronavirus impact. That is, turnover can be down for any reason. This is what many business owners failed to understand and caused them to miss out on JobKeeper from March.
As per JobKeeper version 1 there will be alternative turnover tests. Details of these tests have not yet been released. Please note that no legislation for JobKeeper 3 has yet been passed or made available.
The payment rate will be reduced from $1,500 per fortnight to $1,200 in October and $1,000 in January. The payments will be further reduced for employees that worked less than average 20 hours per week in the 4 weeks to 1st March 2020 from $1,500 to $750 and then $650 for the March quarter.
As per JobKeeper 1 in April, we will proactively review eligibility and contact all of our clients to recommend actions required.
Another change to the system after 27th September is that employees employed as at 1st July will be eligible for JobKeeper 3.
Business owners that failed to register for JobKeeper 1, due to poor advice or failure to understand the system, are still able to register if August or September turnover is expected to be down 30% on the same month last year.