UPDATE FOR DIRECTORS: JobKeeper extended for six months

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For many directors, the JobKeeper extension will not save their business

Extending JobKeeper may provide a lifeline for some businesses, but for many others it will simply delay an inevitable wind up – a delay that can result in further financial and reputational losses. The predicted ‘avalanche’ of insolvencies when the government’s support measures like JobKeeper and the ATO Cash Boost end will see thousands of directors trying to secure one of Australia’s limited number of Registered Liquidators.

To help you – or your client’s business – avoid this stressful situation, an obligation-free chat with one of our highly experienced insolvency practitioners can provide vital information on the right strategies for resolving your situation. These can include solutions such as a restructure, refinancing, or evden Safe Harbour or Voluntary Administration to give you time to ‘right the ship’ and avoid liquidation.

For an update on JobKeeper 2.0, see below:

While the Federal Government announced on July 21, 2020 that it would be extending JobKeeper until March 28, 2021, it will only be for eligible businesses that continue to be “significantly impacted by the Coronavirus” and comprise of two tiers of reduced payments between $1,200 and $650.

While the Federal Government announced on July 21, 2020 that it would be extending JobKeeper until March 28, 2021, it will only be for eligible businesses that continue to be “significantly impacted by the Coronavirus” and comprise of two tiers of reduced payments between $1,200 and $650.

Eligibility for JobKeeper payments from September 28 to March 28, 2021 will be based on actual GST turnover (not projected GST turnover) in the June, September and December 2020/21 quarters and applying businesses will need to demonstrate a decline of:

  • 30 per cent for businesses with an aggregated turnover of $1 billion or less
  • 50 per cent for those with an aggregated turnover of more than $1 billion

And there will be two tiers of payment, as outlined below:

Between September 28, 2020 and January 3, 2021:

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

Between January 4, 2021 and March 28, 2021:

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

If any of your employees were on leave during February 2020

The Commissioner of Taxation has the discretion to set alternative tests for employees whose hours were not usual during February 2020 due to being on leave, volunteering during the bushfires or not employed for all or part of the month.

The same employee eligibility rules apply for the extended JobKeeper payments. Visit www.ato.gov.au/general/jobkeeper-payment/employees for details.

For further information on the extension of the JobKeeper Payment visit https://treasury.gov.au/sites/default/files/2020-07/Fact_sheet-JobKeeper_Payment_extension.pdf

JobKeeper eligibility to be extended from January 4, 2021

On August 7, the Federal Government announced that from January 4, 2021, businesses whose GST turnover has fallen over one quarter, not multiple quarters, and staff employed on or before July 1, 2020 will be eligible for the JobKeeper Payment in the December 2020 and March 2021 quarters.

Businesses therefore need to show a loss for only the December quarter to qualify for the scheme in January, 2021. Further information on the extension of the JobKeeper Payments can be found here.

Contact us today on 1300 547 724 and discover your options. Or simply enquire now using the form below.



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