JobKeeper changes coming in September

by Arpit U. Tax Accountant

The Australian government announced that some changes in the JobKeeper scheme would come in September. The treasury reviewed the business & market situation and found that the businesses still need the JobKeeper scheme. But it also requires some measurable tests to implement it well.

The business individuals need to qualify for some test and show their eligibility to benefit from the subsidy scheme and continue to receive JobKeeper, for which they can take the help of a tax agent in Melbourne. The payment for the eligible business individuals will remain to continue in September to improve the turnover.

Who Will Be Eligible Past September 27, 2020?

The tax agents in Melbourne believe that due to the COVID-19, the businesses' situation in western Australia is worse. The firms face a rapid decline in their turnover. However, after the period of lockdown, the economy needs to be back on track again. 

But the business that faces a sharp decline in the turnover is likely to benefit from the JobKeeper scheme.

Be Ready

If, somehow, your business doesn't qualify for the extension of the JobKeeper scheme, the entitlement for that remains unchanged until further announcement. Your tax agent in Melbourne will keep you informed about the business's current situation and changing it is possible or not. So, if you become eligible, you can reapply for it again.

What Changes Would be Expected?

The JobKeeper scheme remains active until March 2021. However, some changes might be seen in the coming months. The changes that people will observe are:

JobKeeper 2.0

The extension of the JobKeeper subsidy scheme and the next phase will occur in late September 2020 with a reduced wages rate. The subsidy in this scheme will be reduced from $1500 fortnight to $1200 for the workers working more than 20 hours a week.

Those employees working less than 20 hours in a week will receive the fortnight payment of $750. But this is also based on the working hours they did previously before the lockdown period.

JobKeeper 3.0

This phase will start from January 4, 2021, and the wages will further decline to $1000 for a 20-hour working individual and $650 for the worker working less than 20 hours a week.

The Reassessment Will Occur in October and January

Businesses in early October need to prove that they're facing the downfall in finance. Individuals need to show that their finance has been declined at least 30% in June and September as that of the previous year.

This is necessary to make them eligible for the scheme in October and December. Similarly, they need to prove again in January to take the leverage of this scheme.

Bottom Line

JobKeeper is going to fill the gap between business failure and success and keep the economy on track. As per the Melbourne tax agents, the businesses need to prepare themselves for the future and keep an eye on the JobKeeper eligibility so that they can take advantage of the scheme and boost their funds. 

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Created on Aug 19th 2020 23:41. Viewed 405 times.

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