Home » Posts tagged "JobKeeper"

Posts Tagged JobKeeper


Federal Government releases economic update

15th Aug, 2020

On 23 July 2020, Federal Treasurer Josh Frydenberg released the Economic and Fiscal Update July 2020, outlining the key COVID-19 policy response measures announced by the Government since March 2020. The Treasurer said the Government has provided economic support for workers, households and businesses of around $289 billion (14.6% of gross domestic product) in response to the pandemic.

The economic update incorporated the extension of JobKeeper payments for six months beyond its legislated finish date of 27 September 2020. The total cost of the extended JobKeeper regime is now estimated to be $85.7 billion over 2019–2020 and 2020–2021.

While the update did not include any major new financial support measure announcements, it brought information about a range of other changes, including that:

  • the Government will extend the application period to 31 December 2020 for the early release of superannuation (tax-free) by those dealing with adverse economic effects of COVID-19;
  • the Supporting Apprentices and Trainees (SAT) wage subsidy will be extended for a further six months to 31 March 2021, and expanded to include medium-sized businesses;
  • a full income tax exemption will be provided for Australian Defence Force (ADF) personnel deployed on Operation Orenda as part of the United Nations Multidimensional Integrated Stabilisation Mission in Mali;
  • the start date for the 2015–2016 Budget measure to allow the ATO to pay lost and unclaimed superannuation amounts directly to New Zealand KiwiSaver accounts has been revised; and
  • the start date of the proposal to prevent super funds from transferring new amounts to eligible rollover funds will be deferred by 12 months.

The Economic and Fiscal Update was never meant to be a “mini budget”, and the Federal Budget will be handed down on 6 October 2020. Mr Frydenberg has previously indicated that the Government is looking at the timing of the legislated personal income tax cuts and may consider bringing them forward as part of the Budget in October.

Tags: ,


JobKeeper extended, with changes

15th Aug, 2020

The Government has announced that JobKeeper payments will continue for six months beyond the legislated finish date of 27 September 2020, subject to revamped eligibility rules. Treasurer Josh Frydenberg said the Government will introduce two tiers of payment rates as part of “JobKeeper 2.0” to better reflect the pre-COVID-19 incomes of recipients.

The extension of JobKeeper from 28 September 2020 until 28 March 2021 will also include a requirement for businesses and not-for-profits to demonstrate an actual decline (not merely predict a decline) in turnover under the existing turnover test. The JobKeeper payment will also be stepped down and paid at two rates. Importantly, the existing arrangements for those receiving JobKeeper payments continue until
27 September 2020.

The JobKeeper payment ($1,500 per fortnight until 27 September) is to be reduced and paid at two rates.
 

Period Rate per fortnight (full) Rate per fortnight (<20 hours worked per week)
28 September 2020 to 3 January 2021 $1,200 $750
4 January 2021 to 28 March 2021 $1,000 $650

Businesses and not-for-profits will be required to nominate which payment rate they are claiming for each of their eligible employees (or business participants) and will have to meet a further decline in turnover test for each of the two periods of extension.

The eligibility rules for employees remain unchanged. Self-employed people will be eligible to receive the JobKeeper payment where they meet the relevant turnover test and are not a permanent employee of another employer.

Tags:


JobKeeper payments to childcare providers end

15th Aug, 2020

The ATO’s key JobKeeper information has been updated to note that payments for childcare providers stop from 20 July 2020.

This follows the Government’s changes to transition certain approved providers of childcare services out of the JobKeeper scheme. The Government has instead decided to extend separate support to this sector by reintroducing the Child Care Subsidy and adding a Transition Payment as part of the Early Childhood Education and Care transition arrangements.

The changes mean that eligibility for JobKeeper payments ends from 20 July for:

  • employees of an approved provider of childcare services where those employees whose ordinary duties are that they are engaged principally in the operation of the childcare centre; and
  • eligible business participants where the business entity is an approved provider of a childcare service.

Childcare providers need to ensure that they do not claim JobKeeper for employees and eligible business participants who are no longer eligible. Likewise, childcare providers will not be reimbursed for payments made after JobKeeper Fortnight 8 (6 to 19 July 2020).

Tags: ,