Extension to JobKeeper and JobSeeker

21st July 2020 |

Extension to JobKeeper and JobSeeker

 

The JobKeeper and JobSeeker schemes were introduced in March and were expected to continue for six months through to September 2020.

 

With some parts of the economy continuing to experience financial distress and the increasing unemployment rate the government has today announced that both schemes will continue through to March 2021 – albeit with some changes.

More detail will be made available in the future but for now:

 

JobKeeper

Businesses will be subject to a new turnover test. To be eligible for payments in the December 2020 quarter, a business must be able to demonstrate it has met the 30% decline (or 50% for large businesses or 15% for charities) in both the June 2020 quarter and the September 2020 quarter. To be eligible for payments in the March 2021 quarter, it will need to meet the test in June 2020, September 2020 and December 2020.  This is different to the current scheme where the reduction in turnover just needed to have been met once.

 

Amounts paid under the scheme will also change. Currently each eligible employee attracts a $1,500 per fortnight payment but under the new scheme:

 

From October to December 2020 – the rate will be $1,200 per fortnight or $750 per fortnight for part time or casual employees working less than 20 hours per week.

 

From January to March 2021 – the rate will be $1,000 per fortnight or $650 per fortnight for part time or casual employees working less than 20 hours per week.

 

JobSeeker

The rate of JobSeeker is currently $1,115.70 per fortnight – this includes the Coronavirus Supplement of $550 per fortnight. From October 2020 this supplement will reduce to $250 per fortnight taking the fortnightly payment to $815.70.

 

The government is expected to release their economic and fiscal outlook on 23 July 2020 and the 2020-21 budget on 6 October 2020. We will keep you informed of any changes as they are released.

 

Contact CrossCorp for more information or for assistance in helping you manage your business through this crisis.