The latest Covid-19 updates for business owners

JobKeeper 3.0

The Government has announced an important update to the JobKeeper program, now being widely referred to as JobKeeper 3.0 These changes have come in response to the heightened restrictions within Victoria and the flow on effects for the economy, however these changes will apply nationwide.

If you believe your business will become eligible JobKeeper in the month of August, having suffered a drop in revenue of more than 30% compared with the same time in 2019, it is important you let the team at Hayes Girling Financial know, or enrol yourself using MyGov or the Business Portal, before the cut off of 31^st August 2020.

Enrolments for the month of August and September will still participate in the original JobKeeper program, with wage subsidies of $1,500 per fortnight per employee or business participant. The only change being the employee eligibility date, discussed below.

You can read more about eligibility and the enrolment process with the ATO here. 

Changes to Eligible Employees

There has been a change to the relevant date of employment which is used to determine if an employee is eligible for JobKeeper payments. This date will move from the 1^st March 2020 to the 1^st July 2020.
This will allow extra employees who have commenced work between 1^st of March 2020 and 1^st of July 2020 to be eligible to receive the JobKeeper payments going forward. This also means, if casual employees have been with the business for the minimum 12-month period on 1^st July, they will also become eligible.

The proposed JobKeeper Extension program

On 28^th September 2020, the original JobKeeper program will end, and the JobKeeper extension program will commence.
To qualify for further JobKeeper payments after this date, businesses will have to demonstrate that their actual GST turnover in a relevant quarter has decreased by more than 30%.

• To be eligible for the period 28^th of September 2020 until 3^rd of January 2021 a business must satisfy the decline in turnover test for the September 2020 quarter.
• For the period 4^th of January 2021 until 28 March 2021 a business would have to satisfy the decline in turnover test for both the September 2020 and December 2020 quarters.

In this extension program, a dual payment rate will be introduced. From 28^th September, the full rate of payment will drop to $1,200 per fortnight, then down to $1,000 per fortnight from 4^th of January 2021.

For those who worked fewer than 20 hours per week in the relevant period, there will be a payment rate of $750 per fortnight from 28^th of September 2020 and $650 per fortnight from 4^th of January 2021.

Business Support Fund - Expansion

If your business has suffered from the impacts of the Covid-19 restrictions, you may also be eligible for a one-off grant under the Business Support Fund Expansion program. You must meet the eligibility criteria is as follows;

• operate a business located within Victoria; and
• be a participant in the Commonwealth Government’s JobKeeper Payment scheme; and
• employ people; and
• be registered with WorkSafe on 30 June 2020; and
• have an annual payroll of less than $3 million in 2019-20 on an ungrouped basis; and
• be registered for Goods and Services Tax (GST) as at 30 June 2020; and
• hold an Australian Business Number (ABN) and have held that ABN at 30 June 2020; and
• be registered with the responsible Federal or State regulator.

You can read more and if eligible, apply here

If you would like to discuss your situation with one of our accountants, please email tax@hgfin.com.au or phone 03 9212 8400.