JobKeeper extended by six months

Posted at 08:31h in Financial Planning, Stimulus Package by Simmons Livingstone

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JobKeeper extended by six months

Prime Minister Scott Morrison has just provided confirmation that the JobKeeper payment scheme has been extended by six months.

The announcement comes as the federal government intervention has proven itself to be effective in supporting businesses and their employees during the COVID-19 outbreak.

Since its introduction in March, the JobKeeper payment support scheme has provided 960,000 businesses and 3.5 million employees with much-needed income support, strengthened professional connections between employer and employees and helped maintain people’s livelihoods.

With that in mind, the federal government has just confirmed that current JobKeeper arrangements will remain until the end of September 2020, when JobKeeper 2.0 will take its place.

JobKeeper 2.0 will distribute staggered reductions in payments up until 31st March 2021.

Here are the confirmed JobKeeper 2.0 requirements:

October 2020 – Early 2021

Companies that continue to meet revenue reduction requirements will be entitled to $1,200 per fortnight for employee working 40 hours per fortnight
Employees that work less than 40 hours per fortnight will be entitled to $750 per fortnight

Early January – 31st March 2021

Companies that continue to meet revenue reduction requirements will be entitled to $1,000 per fortnight for employee working 40 hours per fortnight
Employees that work less than 40 hours per week will be entitled to $650 per fortnight

So far, the total cost of the JobKeeper payment scheme has totalled $30 billion with the adjusted program forecasted to increase that total spend to over $86 billion.

Though the Prime Minister has come under scrutiny for his decision to execute a flat-rate payment structure across all industries and employment statuses, he speaks enthusiastically about the future.

“It has saved businesses and it has saved livelihoods. That is the feedback I’ve been getting direct as I’ve spoken Australians – employees, employers – all around the country. It has been the game-changer for them.”

“Their businesses would not be here, their jobs would not be here were it not for the intervention and the way it was undertaken so quickly and so effectively.” He said.

This enthusiastic approach was complemented by Treasurer Josh Frydenberg.

“Treasury expects that the number of JobKeeper recipients will reduce substantially, with around 1.4 million people remaining eligible in the December quarter 2020 and one million in the March quarter 2021.” He said.

“We know that the economic pain caused by COVID will end and that many businesses now struggling will be viable once again. This is why we’re extending the payment to buy time to get businesses and their employees to the other side.”

If you have any questions regarding the JobKeeper extension, do not hesitate to talk to the financial experts at Simmons Livingstone & Associates.

We’re here to help you and your business come out of COVID-19 stronger and better than ever.