Recently, the government announced the extension of JobKeeper until March 2021.
This program has been crucial in keeping Australia working during the pandemic. As employees continue to earn an income retaining connection to their employers, businesses are able to generate cash flow. In fact, forecasting and managing cash flow proficiently truly is the bottom line for business survival in these economically uncertain times.
Jobkeeper Extended to 2021
If your business is currently receiving this subsidy, your payments will continue as is, until 27 September. However, the current development of a ‘second wave’ of coronavirus infections creates insecurity across the recovering economy that affects some businesses, but not others. Therefore, from 28 September JobKeeper will be extended, evolving to prioritise support to those businesses and not-for-profits (NFP) who continue to be significantly impacted by COVID-19. Here’s how JobKeeper will adapt over the coming months.
Phase 1: 28 September 2020 – 3 January 2021
If your business or NFP is currently receiving JobKeeper payments, you will need to reassess your eligibility from 28 September 2020. As of this date, you will need to show actual GST turnover in the September quarter to be eligible to receive payments until 3 January 2021.
Phase 2: 4 January 2021 – 28 March 2021
In the New Year, businesses and NFPs will again need to assess their eligibility to continue to receive JobKeeper. You will need to demonstrate your business meets the relevant continuing decline in turnover test for actual GST turnover in the December quarter.
What are the turnover tests?
- 50% for those with an aggregated turnover of more than $1 billion;
- 30% for those with an aggregated turnover of $1 billion or less; or
- 15% for Australian Charities and NFP Commission-registered charities (excluding schools and universities).