Jobkeeper Extension – 2.0 and 3.0

The Government announced it is extending the JobKeeper Payments from 28 September 2020 to 28 March 2021.

You don't need to re-enrol for the JobKeeper 2.0 extensions if you are already enrolled for JobKeeper for fortnights before 28 September.

You don’t need to reassess employee eligibility or ask employees to agree to be nominated by you as their eligible employer if you are already claiming for them before 28 September.

You can be eligible for JobKeeper 3.0 extension even if you were not eligible for JobKeeper 2.0 extension.

Business Eligibility

From 28 September 2020, businesses and not-for-profits seeking to claim JobKeeper Payment will be required to re-assess their eligibility for the JobKeeper extension with reference to their actual turnover in the September quarter 2020.  The payment will be stepped down and paid at two rates.

In order to be eligible for the first JobKeeper Payment extension period of 28 September 2020 to 3 January 2021, businesses and not-for-profits will need to demonstrate that their actual GST turnover has fallen in the September quarter 2020 (July, August, September) relative to a comparable period (generally the corresponding quarter in 2019).

In order to be eligible for the second JobKeeper Payment extension period of 4 January 2021 to 28 March 2021, businesses and not-for-profits will need to demonstrate that their actual GST turnover has fallen in the December quarter 2020 (October, November, December) relative to a comparable period (generally the corresponding quarter in 2019).

The decline in turnover test remains the same as the existing rules.

Employee Eligibility

The reference date for assessing which employees are eligible for the JobKeeper Payment is now 1 July 2020 with effect from 3 August 2020. The reference period for employees regarding their hours worked to determine their tier of payment will be the two fortnightly pay periods prior to 1 March 2020 or 1 July 2020. The period with the higher number of hours is to be used for employees who were eligible at 1 March 2020.

JKP Payment Rate

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 in the business or not for-profit for 80 hours or more in the four weeks of pay periods before either 1 March 2020 or 1 July 2020, and for eligible business participants who were actively engaged in the business for 80 hours or more in February and provide a declaration; and

• $750 per fortnight for other eligible employees and business participants.

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 in the business or not for-profit for 80 hours or more in the four weeks of pay periods before either 1 March 2020 or 1 July 2020, and for business participants who were actively engaged in the business for 80 hours or more in February; and

• $650 per fortnight for other eligible employees and business participants.