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The final rules for the extension of JobKeeper were handed down by Treasury last week, with further guidance to be released before the end of this month.

A summary of the key aspects follow.

Employer Eligibility

From 28 September 2020, businesses seeking to continue to claim JobKeeper will be required to re-assess their eligibility.

There is also an opportunity for businesses that have not previously claimed JobKeeper to enter the scheme for the first time.

JobKeeper Extension 1 runs from 28 September 2020 to 3 January 2021.

For most businesses, in order to be eligible, their turnover for the September quarter 2020 will need to be at least 30% down on the September quarter 2019.

Broadly speaking, turnover will be taken from Business Activity Statements, with special rules applying to businesses that are not registered for GST.

JobKeeper Extension 2 runs from 4 January 2021 to 28 March 2021.

For most businesses, in order to be eligible, their turnover for the December quarter 2020 will need to be at least 30% down on the December quarter 2019.

Payment Rates

The payment rates have been pared back and will now depend upon the hours worked by an employee.

From 28 September 2020 to 3 January 2021, the JobKeeper Payment rates will be:

• $1,200 per fortnight for all eligible employees who were working in the business for 20 hours or more a week on average in the four weeks of pay periods ending before either 1 March 2020 or 1 July 2020;
• $1,200 per fortnight for eligible business participants who were actively engaged in the business for 20 hours or more per week on average in February 2020; and
• $750 per fortnight for other eligible employees and business participants.

From 4 January 2021 to 28 March 2021, the JobKeeper Payment rates will be:

• $1,000 per fortnight for all eligible employees who were working in the business for 20 hours or more a week on average in the four weeks of pay periods ending before either 1 March 2020 or 1 July 2020;
• $1,000 per fortnight for eligible business participants who were actively engaged in the business for 20 hours or more per week on average in February 2020; and
• $650 per fortnight for other eligible employees and business participants

Employee Eligibility

The rules regarding employee eligibility are unchanged, other than the fact that an employee can now be nominated by a new employer for JobKeeper purposes if their employment with a former employer who was claiming JobKeeper for them ended before 1 July 2020.

Similarly, an eligible busines sparticipant can now be nominated by a new business for JobKeeper purposes if their employment or eligible business participation with a former business who was claiming JobKeeper for them ended before 1 July 2020.

It is still the case that JobKeeper can only be claimed for a maximum of one eligible business participant per business.

The Rules Are Complex

The rules for the JobKeeper Extension, like the original JobKeeper scheme, are complicated. The above is a very brief summary of the basics, however if you have any questions, please contact your PT Partners advisor.

Darren Hagarty is a director of PT Partners.

Image credits: Adrien Olichon