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 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.
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.
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:
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).