JOBKeeper 2.1 Revamped See the Latest Info
The economic impact from the situation in Victoria has prompted the government to revise the second phase of the JobKeeper program announced a couple of weeks ago. The revamp is estimated to add a further $15 billion to the cost of the program.
The current JobKeeper program will still continue unchanged until its completion on 27 September.
JobKeeper 2.1 – changes
The extension is still for an additional six-months, from 28 September 2020 to 28 March 2021, divided into two periods; the 1st extension period of seven fortnights, and the 2nd extension period of six fortnights. The turnover decline thresholds also remain. For simplicity, we will refer to the 30% threshold.
The main changes are:
· For the current fortnight (commenced 3 August) onwards, the date on which eligible employees must be employed will move from 1 March to 1 July. It’s not clear, but the 1 July employment date might be in addition to 1 March, which would certainly expand eligibility. But note, an employee is not eligible if they have previously nominated with another employer (even though no longer employed with the previous employer, so there is no double-dipping). This might not be the intention, and these issues will need clarification.
· To qualify for the 1st extension period, only the September quarter needs to have suffered the 30%+ turnover decline.
· To qualify for the 2nd extension period, only the December quarter needs to have suffered the 30%+ turnover decline.
· The two payment rates remain, but the higher will apply where an eligible employee worked an average of 20 hours or more in the four weeks of pay periods before either 1 March 2020 or 1 July 2020.
For a snapshot summary of the extension periods discussed, other issues to consider and the next steps to take, read our full article, click below.
