JobKeeper payments extended

The JobKeeper Payment, which was originally due to run until 27 September 2020, will continue to be available to eligible businesses (including the self-employed) and not-for-profits until 28 March 2021. In addition, from 3 August 2020 the relevant date of employment will move from 1 March to 1 July 2020, increasing employee eligibility for the existing scheme and the extension.

The payment rate of $1,500 per fortnight for eligible employees and business participants will be reduced to $1,200 per fortnight from 28 September 2020 and to $1,000 per fortnight from 4 January 2021. From 28 September 2020, lower payment rates will apply for employees and business participants that worked fewer than 20 hours per week in the relevant reference period.

From 28 September 2020, businesses and not-for-profits seeking to claim the JobKeeper Payment will be required to demonstrate that they have suffered a decline in turnover using actual GST turnover (rather than projected GST turnover). From 28 September 2020, businesses and not-for-profits will be required to reassess their eligibility with reference to their actual GST turnover in the September quarter 2020 to be eligible for the JobKeeper Payment from 28 September 2020 to 3 January 2021.

From 4 January 2021, businesses and not-for-profits will need to further reassess their turnover to be eligible for the JobKeeper Payment. They will need to demonstrate that they have met the relevant decline in turnover test with reference to their actual GST turnover in the December quarter 2020 to be eligible for the JobKeeper Payment from 4 January 2021 to 28 March 2021.

For more information about the JobKeeper changes click here.

While Australia enjoyed early success in flattening the curve of infections, Victoria is at the center of a renewed outbreak. The state is experiencing some of the strictest social-distancing measures in the western world, crippling economic activity there and shaking confidence across the nation. Victoria saw 394 new Covid-19 cases and 17 deaths, state Premier Daniel Andrews said in a media briefing on Sunday. Ten new cases were reported for New South Wales state in the 24 hours to 8 pm Saturday, the ABC reported. The Victorian outbreak, along with the scheduled decline in JobKeeper payments, have fueled concern the economy may take another lurch lower, prolonging the recovery from the first recession in almost 30 years.

Finance Minister Mathias Cormann hasn't ruled out further changes to JobKeeper if necessary in the face of an evolving coronavirus crisis. Last week the government announced a further $15 billion injection into the wage subsidy program with changes allowing easier access for businesses, that are aimed at outbreak-hit Victoria. However, the scheme will step down from a fortnightly payment of $1500 a week to $1200 at the end of September, and then down to $1000 from December to March.

We've responded to things as they've emerged. But ... moving forward our intention is to transition the economy and to transition the fiscal policy settings back to the new normal by the end of March.