JobKeeper 2.0 changes announced

On 7 August 2020, the Treasurer announced that the turnover reduction test that is required to access JobKeeper 2.0 from 28 September 2020 will change from that previously announced last month.

In July, it was originally announced that in order for a business to be eligible to claim JobKeeper 2.0 from 28 September 2020, they will have to have had a reduction in their actual turnover of at least 30% for the June 2020 quarter and the September 2020 quarter. To access JobKeeper 2.0 for the March 2021 quarter, the rules originally required the business to have had a reduction in turnover of at least 30% for the June 2020 quarter, the September 2020 quarter and the December 2020 quarter.

The Treasurer has now announced that the turnover reduction test will be altered so that businesses will only be required to demonstrate a reduction in turnover of at least 30% for their September 2020 quarter to access JobKeeper 2.0 for the December 2020 quarter and a reduction in their turnover of at least 30% for the December 2020 quarter to access JobKeeper 2.0 for the March 2021 quarter.

The above change has been made to reflect that some businesses may have experienced improvement in conditions before again being impacted as a result of tighter lockdown restrictions. With Stage 4 lockdown in Victoria and its impact on business, it is expected that the JobKeeper 2.0 program may continue to evolve further before it commences.

In addition to amending the turnover test requirement, the Treasurer also announced that eligible employers will be able to claim JobKeeper 2.0 payments for employees that commenced employment prior to 1 July 2020 (i.e. rather than the 1 March 2020 date that the original JobKeeper program had).  This will mean that JobKeeper 2.0 payments may become available for particular employees of the employer that did not previously qualify for the original JobKeeper program.

Please do not hesitate to get in touch with us via your Banks Group representative, (03) 9810 0700 or info@banksgroup.com.au if you have any further questions.

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