Find out what you need to know about the recent changes to the JobKeeper Payments Program in 2021 and what it means for your business.
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2020 was a tough year for many entrepreneurs as they suffered from the economic downturn caused by the COVID-19 pandemic. The Federal Government’s JobKeeper program was an important program to support companies. However, as we head into 2021, there are some changes to be made to the program that you should be aware of. These new changes will have a major impact on companies and employees. This article explains the changes to JobKeeper and how they could affect your business.
Changes to JobKeeper authorization
In order to qualify for JobKeeper in the future, companies must demonstrate that their actual GST sales decreased in the December quarter compared to the corresponding quarter of 2019. You can satisfy the actual drop in sales in two ways: the basic test and the alternative test. It is important to note that this is different from the original sales decline test. To be eligible for Renewal JobKeeper Payments, businesses and nonprofits must provide evidence that they have experienced the following decline in revenue:
- 30 percent for those with total sales of $ 1 billion or less; or
- 15 percent for Australian charities and nonprofits registered by the commission
Additionally, you must complete a December 2020 monthly business return before January 28, 2021. This is a two-week extension of the usual monthly return due date. If you were not eligible for JobKeeper in the previous period, you may still be eligible for the remaining renewal period. The JobKeeper program is also open to new participants, provided they can meet the admission criteria. Finding out if you are eligible for the new renewal period is a must for any company that is not receiving payment.
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JobKeeper payment changes
If you are currently relying on the JobKeeper payment program, the dollar amount for both tiers has decreased from January 4th. Previously there were two rates, depending on how much an employee worked at the beginning of 2020. A Tier 1 rate was paid for employees who worked 80 hours or more in the four weeks prior to March 1, 2020 or July 1, 2020; other eligible employees fall under the Tier 2 rate.
The JobKeeper payment runs until March 28, 2021. The prices for the JobKeeper payment during this period are: USD 1,000 per two weeks for Tier 1 and USD 650 per two weeks for Tier 2. This is a reduction from the previous period in which the payments were $ 1,200 and $ 750, respectively. This is a new challenge for businesses and it is important to assess how this could affect yours.
Navigating the JobKeeper program can be difficult. In addition, there is still the potential for further restrictions on businesses. Therefore, it is vital for business owners to ensure that their business can get assistance when it is justified. Lawpath can help you find an attorney who can ensure that your company is taking advantage of all available government resources.