It has been reported today that the Government is overhauling the eligibility requirements for the JobKeeper 2.0 Wage Subsidy Scheme that were announced only weeks ago in the wake of Victorian COVID-19 crisis.
To qualify for the revised JobKeeper 2.0 for the period 28 September 2020 to 3 January 2021, businesses will now only have to show a 30% reduction in turnover (50% for large businesses & 15% for not-for-profits) for the September 2020 quarter compared with the comparable period in 2019.
For the period 4 January 2021 to 28 March 2021, businesses will only have to show a reduction in turnover for the December 2020 quarter compared with the comparable period in 2019 to qualify.
Further, there has been a change to the eligibility requirements for workers. They now only need to have been employed by the business as of 1 July 2020 rather than 1 March 2020.
This is a significant change to the originally proposed rules and will mean that a considerable number of businesses and employees will now meet the requirements for the Jobkeeper payments.
We are awaiting further details to clarify the new eligibility criteria and will keep you updated.
JobKeeper 2.0 is still yet to be legislated. The next sitting of Parliament will be on 24 August 2020.
For further information, please contact your Cooper Reeves Adviser.