Changes to JobKeeper and JobSeeker were recently announced! Both policies will be extended for those eligible. This is fantastic news for small businesses who were previously expecting payments to be cut off in September.
There will be a two-tier system for Job Keeper with separate rates for full-time workers and others. This will be effective in October and is expected to last until December 2020. The JobKeeper wage subsidy will be decreased to $1,200 for full-timers and $750 for part-time employees as opposed to the current $1500 per fortnight payments.
These payments will then be weaned out further to $1,000 and $650 respectively from January 2021 until March 2021 instead of employers being cut off completely.
So, are you eligible for the extended payments? Businesses are required to pass a new eligibility test in October, and again in January, to make sure they do genuinely require the ongoing support. Actual turnover will be tested to verify that your business has, over the past 6 months, has recovered from the hit of Covid-19
JobSeeker is to be extended to December 2020 with the income free threshold increased to $300
The extension of the payments is for businesses who are still currently struggling, and these payments are to ensure they are not cut off completely. Unfortunately, this will mean that other businesses who are no longer eligible to receive further payments. This will be based on the fact that they have had an increase in turnover over the period.
More information can be found Here.
There is also a Fact Sheet provided by the treasury on announcement.
