Changes to JobKeeper to Help More Businesses and Employees Eligible for Payments

Following the introduction of stage four restrictions in metropolitan Melbourne and stage three restrictions across regional Victoria, the Australian Government has announced new changes to the JobKeeper scheme.

Key adjustments include:

A change to the employee reference date – from 3 August 2020 the relevant date of employment for an eligible employee will move from 1 March to 1 July 2020, expanding employee eligibility.
A change to the turnover reference period – to be eligible for JobKeeper post 28 September 2020, organisations will only have to demonstrate that their actual turnovers have significantly declined in the previous quarter.

As a result, organisations that are able to demonstrate a significant decline in turnover in the September 2020 quarter will be able to access the JobKeeper extension in the December quarter. An organisation able to demonstrate the requisite decline in turnover in the December 2020 quarter would be able to access the JobKeeper extension in the March 2021 quarter.

The combined effect of the economic deterioration in Victoria which will see more firms needing to rely on JobKeeper and the eligibility changes being made to the program will see the cost of JobKeeper increase by around $15.6 billion in 2020-21.

While these changes will apply nation-wide, it is expected that more than 80 per cent of the increased payments will flow to Victorian businesses and employees.

These changes, combined with a deterioration in the economy as a result of the stricter restrictions imposed in Victoria will see the total cost of the JobKeeper program increase to $101.3 billion.

It is now expected that around 4 million Australians will be benefiting from JobKeeper Payments at the end of the September quarter, falling to around 2.24 million in the December quarter and 1.75 million in the March 2021 quarter.

Further information is available here.

Treasury Revises JobKeeper Cost to $70 Billion (25 May 2020)

Australia Announces Wage Subsidy Scheme (31 March 2020)