JobKeeper extension

Extension from 28 September 2020

The JobKeeper scheme has been extended from 28 September 2020 until 28 March 2021.

There are two separate extension periods. For each extension period, an additional actual decline in turnover test applies and the rate of the JobKeeper payment is different.

The extension periods are:

• Extension 1: from 28 September 2020 to 3 January 2021

• Extension 2: from 4 January 2021 to 28 March 2021

Extension 1: from 28 September 2020 to 3 January 2021

The actual decline in turnover test is satisfied for JobKeeper extension 1 when your current GST turnover for the quarter ending 30 September 2020 (July, August and September) has declined by the specified shortfall percentage (30%, 50% or 15%) in comparison to your current GST turnover for the quarter ending 30 September 2019.

Extension 2: from 4 January 2021 to 28 March 2021

The actual decline in turnover test is satisfied for JobKeeper extension 2 when your current GST turnover for the quarter ending 31 December 2020 (October, November and December) has declined by the specified shortfall percentage (30%, 50% or 15%) in comparison to your current GST turnover for the quarter ending 31 December 2019.

Alternative tests for determining actual decline in turnover may be available in some circumstances. These will apply in a similar way to the alternative tests for the original decline in turnover test. However, they must be applied on the basis that the turnover test period is a quarter. We will publish more information on the alternative tests for the actual decline in turnover test once it is available.

The rates of payment will change

The rate of the JobKeeper payment in each extension period will depend on the number of hours:

• an eligible employee works, or

• an eligible business participant is actively engaged in the business.

It will be split into two rates.

Tier 1 rate: $1200 per fortnight (extension period 1) and $1000 per fortnight (extension period 2)

Tier 2 rate: $750 per fortnight (extension period 1) and $650 per fortnight (extension period 2)

Tier 1 rate applies to:

• eligible employees who worked for 80 hours or more in the four weeks of pay periods before either 1 March 2020 or 1 July 2020, and

• eligible business participants who were actively engaged in the business for 80 hours or more in February and provide a declaration to that effect.

Tier 2 rate applies to:

• any other eligible employees and eligible business participants.

Employers and businesses will need to nominate the rate they are claiming for each eligible employee and/or eligible business participant.

The rules for eligible religious practitioners are similar to those for eligible business participants, with the payment rate depending on the hours spent doing activities in pursuit of their vocation in February.

Alternative tests for determining the payment rates that apply to an eligible employee, eligible business participant or eligible religious practitioner may be available in some circumstances.