Updates to JobKeeper explained – July 2020

JobKeeper has been a lifesaver for many businesses during COVID-19, but whether it’s seen as a band-aid or a cure in the future … well, only time will tell.  Without it, however, several of my clients would not have survived the economic effects of this pandemic. For some, it’s been a bonus – they passed the eligibility test and are now doing really well.  Some clients have had their best sales turnover in years! (While this isn’t the normal – it is occurring in some businesses).

An update was announced today (Tuesday 21 July), with some changes to JobKeeper. So, what’s changed?

Eligibility
If you are currently in the program, you will remain eligible for payments until September 27. As of September 28, you will be required to prove your eligibility again for the quarter, and again at the end of December for the following quarter.

Rates
From September 28, 2020, to Jan 3, 2021, the rates will be changed to two different options. For this period I’ve called it Phase 2.

The first is a $1,200 per fortnight payment to employees and business participants that have worked in the business for a total of 20 hours or more for the previous four weeks.

The second rate is $750 per fortnight, payable to any other eligible employees and business participants for those that work less than 20 hours.

From Jan 4, 2021, to 28 March, 2021, the rates will be $1,000 per fortnight per employee and business participants who has worked a total of 20 hours of more in the previous four weeks, and $650 per fortnight for other eligible employees and business participants who work less than 20 hours. This period I’ve called Phase 3.

The first or second rate will be selected when you declare your eligibility each month.

*For the full update, visit https://treasury.gov.au/coronavirus/jobkeeper/extension

Accessing funds
To receive your funding each month, you simply need to declare and forecast your income.  You will need to pass the updated eligibility test to keep the funding in Phase 2 and again in Phase 3.

If you have any questions or would like to find out if you’re eligible for JobKeeper, please contact Keri today on 1300 537 587 or email keri@sortyourbooks.com.au.

Keep well and safe … and if you’re in Melbourne, mask up! 