On 15 September 2020 the Coronavirus Economic Response Package (Payments and Benefits) Amendment Rules (No 8) 2020 came into effect.

The purpose of the Coronavirus Economic Response Package (Payments and Benefits) Amendment Rules (No 8) 2020 is to extend the JobKeeper Payment Scheme as the original scheme ends on 28 September 2020.

The extended JobKeeper Payment Scheme operates in two stages. The first stage ends on or before 3 January 2021 and the second stage ends on or before 28 March 2021.

The extended JobKeeper Payment Scheme – Stage 1

During Stage 1, eligible employers will be reimbursed $1,200.00 per fortnight for each eligible employee who worked 80 or more hours during the reference period and $750.00 per fortnight for each eligible employee who worked less than 80 hours during the reference period.

To qualify for JobKeeper payments in Stage 1 employers must satisfy the original decline in turnover test and an additional test.

Under the Stage 1 additional test, employers must demonstrate that their actual GST turnover has declined by the required percentage for the quarter ending 30 September 2020, relative to the employer’s comparable quarter for this period.

The extended JobKeeper Payment Scheme – Stage 2

During Stage 2, eligible employers will be reimbursed $1,000.00 per fortnight for each eligible employee who worked 80 or more hours during the reference period and $650.00 per fortnight for each eligible employee who worked less than 80 hours during the reference period.

To qualify for JobKeeper payments in Stage 2 employers must satisfy the original decline in turnover test and an additional test.

Under the Stage 2 additional test, employers must demonstrate that their actual GST turnover has declined by the required percentage for the quarter ending 30 December 2020, relative to the employer’s comparable quarter for this period.

Reference Period for an eligible employee

The reference period for an eligible employee is:

-the 28 day period ending at the end of the most recent pay cycle for the employee that ended before 1 March 2020; or

-the 28 day period ending at the end of the most recent pay cycle for the employee that ended before 1 July 2020.

An employer is required to notify the Commissioner of whether a higher rate or a lower rate applies in respect of an eligble employee.

The employer must also notify the employee (within 7 days of giving the Commissioner notice) whether the rate notified to the Commissioner in respect of that employee was the higher rate or the lower rate.

The Government has advised that the combined effect of the JobKeeper extension and the recent economic deterioration in Victoria bring the estimate of JobKeeper payments overall to $101.3 billion.

Further COVID-19 Information

Should you require further information on these or any other Covid-19 and franchising issues contact us.

Disclaimer

The information in this article is general in nature and is not intended to address the circumstances of any person or other entity. Although we do our best to provide timely and accurate information, we do not guarantee that the information in this article is accurate or that it will continue to be accurate in the future.