Tax Matters – September 2020

A monthly column from local accountants Tax Arana

The Federal Government has announced changes along with an extension of the JobKeeper payment. From September 28, 2020, businesses and not-for-profits who are seeking to claim JobKeeper payments will now be required to have their eligibility re-assessed for the JobKeeper extension. Actual turnover in the September quarter will be used to determine eligibility. Businesses and not-for-profits will need to demonstrate that they have met the decline in turnover test in this quarter to be eligible for JobKeeper from 28 September 2020 to 3 January 2021.

To determine employee eligibility, the reference date for eligibility is now July 2020 with effect 3 August 2020, this may mean employees not previously eligible may now become eligible.

The payment rate from September 28, 2020 will be reduced and paid at two rates. From September 28 to January 2021 the payment rate will be $1,200 per fortnight for all eligible employees, who in the four weekly pay periods before the reference period, were working in the business for 20 hours or more a week on average and $750 per fortnight for employees who were working in the business for less than 20 hours a week on average.

From January 4, 2021 to 28 March 2021 the payment amounts will be $1,000 and $650 and again payment made will be determined by the hours worked.

The changes may seem confusing at first glance but can be easily worked through. If you are unsure of what to do, please don’t hesitate to get in touch with the team at TaxArana on 3351 6111

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