Karen Price, Finance Manager at the AEGN has provided a summary of what the implications of the recent JobKeeper announcement are for not-for-profits.
On 21 of July, Treasurer Josh Frydenberg announced JobKeeper 2.0. Here are the key points:
- Rates will drop to $1200 per fortnight after September and there will be a new lower rate for employees who work less than 20 hours per week on average ($750 per fortnight)
- Eligibility Turnover test still remains at 15 per cent decline in turnover for not-for-profits but to be eligible after September, the not-for-profits will need to prove a decline in actual turnover (rather than projected) in both the June and September quarters (compared to the same time last year) to receive JobKeeper to January 2021 and then prove a further decline in turnover in the December quarter (compared to same time last year) if they are to receive job keeper to end of March 2021.
|Date||Full rate per fortnight||Less than 20 hours worked per fortnight rate|
|28 September 2020 to 3 January 2021||$1200||$750|
|4 January 2021 to 28 March 2021||$1000||$650|
Employees who were employed for less than 20 hours a week on average in the four weekly pay periods ending before 1 March 2020 will receive the lower payment rate.
Business eligibility turnover test
Eligible businesses will have to suffer the requisite decline (no change to percentages) based on actual GST turnover (rather than projected GST turnover) to remain eligible:
- 15 per cent for Australian Charities and Not-for-profits Commission-registered charities (excluding schools and universities)
|JobKeeper Period||Eligibility criteria|
|28 September 2020 to 3 January 2021||Relevant 15 per cent drop in actual GST turnover in both the June and September 2020 quarters compared to the June and September 2019 quarters.|
|4 January 2021 to28 March 2021||Relevant 15 per cent drop in actual GST turnover in all of the June, September and December 2020 quarters compared to all of the June, September and December 2019 quarters.|
For more information go to:
Disclaimer: This information does not represent financial advice and you should seek assistance for your individual circumstances.