Coronavirus stimulus payments extended into 2021

August 5th, 2020 by igniite

Coronavirus stimulus payments extended into 2021

With a second wave of COVID-19 (coronavirus) cases and returning to lockdowns, the Federal Government has announced an extension to its economic support measures.

The changes to the JobKeeper wage subsidy payment are designed to protect the economy and livelihoods as Australia faces its first recession in 30 years

Current JobKeeper payment

The JobKeeper wage subsidy payment will continue in its current format of a $1,500 fortnightly payment until the original end-date of 27 September 2020.

The JobKeeper payment is paid to employers as a subsidy for income paid to eligible workers, providing the employer can demonstrate a specified reduction in turnover, depending on the size and nature of the business, due to COVID-19.

Changes to JobKeeper from 28 September 2020

From 28 September 2020 until 3 January 2021, the JobKeeper payment will reduce to:

$1,200 per fortnight for all eligible employees who, in the four weeks before 1 March 2020, were working in the business for at least 20 hours a week on average – and for business participants who were actively engaged in the business for more than 20 hours per week, and
$750 for employees who worked less than 20 hours per week on average in the four weeks before 1 March 2020.

From 28 September 2020, organisations seeking to claim JobKeeper payments will be required to reassess their eligibility for the JobKeeper extension with reference to their actual turnover in the June and September quarters 2020.

Organisations will need to demonstrate that they have met the relevant continuing decline in turnover test in both of those quarters to be eligible for JobKeeper Payment from 28 September 2020 to 3 January 2021.

Changes to JobKeeper from 4 January 2021

From 4 January 2021 to 28 March 2021, the payment will reduce further, to:

$1,000 per fortnight for all eligible employees who in the four weeks before 1 March 2020, were working for at least 20 hours a week on average, and for business participants who were actively engaged in the business for more than 20 hours per week, and
$650 per fortnight for employees who were working for less than 20 hours a week on average and business participants who were actively engaged in the business for less than 20 hours per week in the same period.

In January 2021, organisations will then need to reassess their eligibility for the period from 4 January to 28 March 2021. Organisations will need to demonstrate that they have met the relevant continuing decline in turnover test in each of the previous three quarters to remain eligible for the March 2021 quarter.

Call Business Now for a, no obligation discussion, to see if you qualify as a business, if you are not sure 0412 754 444