Today, the Prime Minister and Treasurer announced an extension to the JobKeeper program until 28 March 2021. All businesses which have qualified will continue to receive the wage subsidy until 27 September 2020, but after this date there will be a number of changes made to the payment rates and the eligibility requirements.
The AADA is concerned that the revised eligibility criteria is too stringent and could exclude our industry, which is facing an incredibly challenging third quarter and fourth quarter with supply shortages and lower demand.
The following are the key features of today’s announcement:
Extension of JobKeeper
- The JobKeeper Payment, which was originally due to run until 27 September 2020, will now continue to be available to eligible businesses (including the self-employed) and not-for-profits until 28 March 2021.
- The payment rate of $1,500 per fortnight for eligible employees and business participants will be reduced to $1,200 per fortnight from 28 September 2020 and to $1,000 per fortnight from 4 January 2021.
- From 28 September 2020, lower payment rates will apply for employees and business participants that worked fewer than 20 hours per week. The payment rate for these employees will be $750 per fortnight from 28 September 2020 and $650 per fortnight from 4 January 2021.
Stricter Eligibility Requirements
- From 28 September 2020, businesses will be required to reassess their eligibility with reference to their actual GST turnover (not their projected) in both the June and September quarters 2020. They will need to demonstrate that they have met the relevant decline in turnover test in both of those quarters to be eligible for the JobKeeper Payment from 28 September 2020 to 3 January 2021.
- From 4 January 2021, businesses and not-for-profits will need to further reassess their turnover to be eligible for the JobKeeper Payment. They will need to demonstrate that they have met the relevant decline in turnover test with reference to their actual GST turnover in each of the June, September and December quarters 2020 to remain eligible for the JobKeeper Payment from 4 January 2021 to 28 March 2021.
To be eligible for JobKeeper Payments under the extension, businesses and not-for-profits will still need to demonstrate that they have experienced a decline in turnover of:
- 50 per cent for those with an aggregated turnover of more than $1 billion;
- 30 per cent for those with an aggregated turnover of $1 billion or less;
For more information, Treasury has prepared the following factsheet:
The AADA is consulting with members on these changes in order to develop an understanding of the effect they will have on the industry. We will continue to call for the Government to consider the circumstances of the automotive industry and the fact that it has been experiencing recession like conditions for 27 months.