JobKeeper and JobSeeker Payments Extended

The JobKeeper and JobSeeker programs have been extended by the Federal Government on Tuesday, 21 July 2020. JobKeeper wage subsidy scheme has been extended until 28 March 2021 with a two-tiered rate system, and the temporary boost to the JobSeeker program will continue to be available until the end of this year at a reduced rate with additional eligibility criteria.

The JobKeeper Payment rates:

1. From 28 September 2020 to 3 January 2021, the JobKeeper Payment rates will be:

• $1,200 per fortnight for all eligible employees who were working for 20 hours or more in the four weeks’ pay period before 1 March 2020.
• $1,200 per fortnight for eligible business participants who were working for 20 hours or more per week on average in February 2020.
• $750 per fortnight for other eligible employees and business participants.

2. From 4 January 2021 to 28 March 2021, the JobKeeper Payment rates will be:

• $1,000 per fortnight for all eligible employees who were working for 20 hours or more in the four weeks’ pay period before 1 March 2020.
• $1,000 per fortnight for eligible business participants who were working for 20 hours or more per week on average in February 2020.
• $650 per fortnight for other eligible employees and business participants.

Businesses and not-for-profits will be required to nominate which payment rate they areclaiming for each of their eligible employees or business participants. The ATO will continue topay the JobKeeper payments in arrears to employers.

Extra turnover tests

For JobKeeper payments after 27 September 2020, businesses and not-for-profits will be required to meet a further decline in the turnover test for each of the two extension periods on top of the existing eligibility requirements.

For the first JobKeeper payment extension, businesses and not-for-profits will need to demonstrate that their actual GST turnover has significantly fallen both in the June and September 2020 quarters compared to corresponding quarters in 2019.

For the second JobKeeper payment extension, businesses and not-for-profits will again need to demonstrate that their actual GST turnover has significantly fallen in each of the June, September and December 2020 quarters compared to corresponding quarters in 2019.

Businesses and not-for-profits must demonstrate this ongoing significant decline in turnover using actual GST turnover (rather than projected GST turnover).

Changes to the JobSeeker program

The Government is also extending the JobSeeker program until the end of the year. At the same time, rules are being imposed to restrict the eligibility of JobSeeker payments as well as reintroducing obligations for payment recipients to seek work actively.

JobSeeker payment rates:

The Coronavirus Supplement of $550 per fortnight is available until 24 September 2020. Beyond this date, the Coronavirus Supplement will be available at $250 per fortnight until 31 December 2020.

Both existing and new recipients of eligible payments will continue to be paid the Coronavirus Supplement.

From 25 September 2020 until 31 December 2020, the income free area for JobSeeker Payment and Youth Allowance (other) will increase from $106 per fortnight for JobSeeker Payment and $143 per fortnight for Youth Allowance (other) to $300 per fortnight for both.

This means that recipients of these payments can earn an income of up to $300 per fortnight and still receive the maximum payment rate of JobSeeker Payment or Youth Allowance (other).

The previous JobSeeker Payment income test of 50 cents for each dollar between $106 and $256 per fortnight, and 60 cents for every dollar over $256 per fortnight, will be replaced with a single income test of 60 cents for every dollar of income earned above $300 per fortnight.

For Youth Allowance (other) the income test of 50 cents for each dollar between $143 and $250 per fortnight, and 60 cents for every dollar over $250 per fortnight, will also be replaced with a single income test of 60 cents for every dollar of income earned above $300 per fortnight.