An extension of the JobKeeper stimulus package has been unveiled by the federal government in addition to changed eligibility criteria for both businesses and individuals.

30 September 2020

More Australian businesses will be able to keep receiving the Federal Government’s JobKeeper stimulus package.

When the extension was announced on 21 July 2020, businesses needed to show a decline in both the June and September 2020 quarters, when compared with 2019. In order to qualify for the first extension of the scheme, businesses will now only need to show GST turnover has fallen in the September 2020 quarter when compared with the same quarter in 2019.

Easing of the eligibility criteria also applies to the second extension of JobKeeper that will begin in January 2021. Previously, businesses would have to show a decline when comparing the June, September, and December 2020 quarters with their 2019 counterparts. Under the new changes however, businesses will only have to show a decline in the December quarter.

There will also be changes to employee eligibility, with employees eligible for the wage subsidies extension if they have been working for their employer since at least 1 July 2020, instead of the original deadline of 1 March 2020.

To determine which tier of JobKeeper payments employees are eligible for, employers will need to use the two fortnightly pay periods to either 1 March 2020, or 1 July 2020. If an employee has been eligible for JobKeeper since 1 March 2020 the fortnightly period with the highest number of hours worked will be used. 

Employees will be impacted by changing rates, based on average hours worked. Those working the equivalent of 20 hours a week or more during the reference periods of February or June will be entitled to the full JobKeeper rate which has been reduced to $1,200 per fortnight.

Employees working less than 20 hours a week during these reference periods will be entitled to the new part time rate of $750 per fortnight. The new rates for both full-time and part-time employees are effective as of 28 September 2020. The rate will drop further from 4 January 2021, to $1,000 per fortnight for full-time employees and $650 for part-time employees.

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