COVID-19 Important Updates
|
|
As we continue to adapt to life with the coronavirus, the one certainty is that anything is possible, and predicting how the next six months unfolds would be anyone’s guess. The events in Victoria over the past few weeks highlight how rapidly the outlook can change, making it extremely difficult for government to chart the way forward with any confidence.
Despite the uncertainty, both Federal and State governments continue to do all they can to assist businesses and the economy to respond accordingly.
Job Keeper 2.0 is the most recent Federal announcement, however, as discussed below, we question whether this version may be short lived. We also highlight a new grant from the Tasmanian government to assist those businesses that have been the hardest hit. Grants are limited and applications close on 24th August 2020, so contact us now if you need assistance.
|
|
|
JobKeeper 2.0 - Will it change again?
Job Keeper 2.0 has been released, but developments in Victoria over recent days may result in further changes being made. As currently announced, many businesses will not be eligible for the extension if their turnover was not significantly impacted in the June quarter, regardless of how severely impacted they are in the next 6 months.
As Treasury’s JobKeeper 2.0 Fact Sheet makes clear, to be eligible for the first JobKeeper Payment extension period of 28 September 2020 to 3 January 2021, businesses will need to demonstrate that their actual GST turnover has significantly fallen in both the June and September 2020 quarters, relative to comparable periods.
To be eligible for the second JobKeeper Payment extension period of 4 January 2021 to 28 March 2021, businesses will again need to demonstrate that their actual GST turnover has significantly fallen in each of the June, September and December 2020 quarters, relative to comparable periods.
That means the chances of some businesses qualifying for the first JobKeeper Payment extension period are already over if business turnover picked-up sufficiently in the June 2020 quarter.
For Tasmania and other parts of Australia where COVID-19 is currently contained and lockdowns lifted, the Treasurer’s new eligibility criteria would appear to work fine. However, the events in Victoria have shown that what the future holds can change very rapidly.
With such a severe lockdown now in place many Victorian businesses will be decimated, and it is expected there will be considerable pressure to review the current proposed changes. With the existing Job Keeper 2.0 not yet legislated and not due to start until end of September, we expect further changes are likely.
As is stands, Job Keeper 2.0 may be short lived.
|
|
|
JobKeeper 2.0 - What are the changes?
The current details of JobKeeper 2.0 mean that payments will be extended beyond 27 September 2020, but at reduced rates. There will also be tighter eligibility requirements for businesses and not-for-profits to receive the subsidy.
- JobKeeper will be extended until 28 March 2021
- Allowances for full-time workers will fall from $1,500 per fortnight, to:
- $1,200 per fortnight from 28 September 2020
- $1,000 per fortnight from 4 January 2021
- Allowances for part-time workers (< 20 hours per week) will fall from $1,500 per fortnight, to:
- $750 per fortnight from 20 September 2020
- $650 per fortnight from 4 January 2021
- To re-qualify for JobKeeper subsidies, businesses and not-for-profits will need to re-test their GST turnover prior to lodgement of their September and December quarter Business Activity Statements (BAS)
|
|
|
JobKeeper 2.0 - What does it mean for employers and employees?
From 28 September 2020, businesses and not-for-profits seeking to claim the JobKeeper Payment will need to demonstrate that they have suffered an ongoing significant decline in turnover (based on the June, September and December 2020 quarters) using actual GST turnover (rather than projected GST turnover).
The table below provides an overview of the changes for each remaining quarter of the JobKeeper subsidy:
|
|
|
JobKeeper 2.0 - What does it mean for sole traders and other entities?
Sole traders and some other entities (such as partnerships, trusts or companies) may be entitled to the JobKeeper Payment scheme under the business participation entitlement.
|
|
|
Small Business Sustainability and Recovery grant
The Small Business Sustainability and Recovery grant program aims to assist small businesses in Tasmania who continue to be impacted by the COVID-19 pandemic, to sustain themselves, recover, re-open, build capacity and innovate.
A limited number of $5,000 grants are available and will be awarded on a competitive merit based program.
The program is open for applications now and closes 12 noon on 24th August 2020, so you will need to act quickly. Contact us now if you need assistance with this grant.
|
|
|
Need help?
We appreciate that the volume of information about COVID-19 measures is overwhelming for many people, particular at a time where we are already challenged at so many levels. To assist you to navigate the unprecedented range of support available, we have summarised all the relevant measures in one simple location:
We will continue to update this page as announcements are made.
If you are in doubt with any aspect of JobKeeper Payment or other COVID-19 measures, we encourage you to contact your Synectic manager to seek guidance with these critical measures.
|
|
|
|
Thank you for your continued trust in our firm; we will continue to focus on helping you through these times. This is a constantly shifting scenario so please keep up to date with announcements from relevant government bodies, the ATO, and public health authorities, in addition to any updates we provide you.
Please do not hesitate to contact us if you have any questions or concerns.
|
|
|
|
|
