Changes to JobKeeper and what they mean for not-for-profit organisations

The Federal Government is extending the JobKeeper Payment by a further six months to 28 March 2021, but the payment rate will be reduced from $1500 to $1200 per fortnight from 28 September. A further reduction from $1,200 to $1,000 per fortnight will then apply from 4 January 2021.

A lower payment rate will also be introduced for those who work fewer than 20 hours per week.

From 28 September 2020, businesses and not-for-profits seeking to claim the JobKeeper Payment will be required to demonstrate that they have suffered an ongoing significant decline in turnover using actual GST turnover – rather than projected GST turnover as is currently the case.

You will also need to reassess eligibility with reference to actual GST turnover during the June and September 2020 quarters to access the JobKeeper Payment from 28 September 2020 to 3 January 2021.

From 4 January 2021, businesses and not-for-profits will need to further reassess their turnover to be eligible for the JobKeeper Payment. They will need to demonstrate that they have met the relevant decline in turnover test with reference to their actual GST turnover in each of the June, September and December quarters 2020 to remain eligible for the JobKeeper Payment from 4 January 2021 to 28 March 2021.

To be eligible for JobKeeper Payments under the extension, organisations will still need to demonstrate that they have experienced a decline in turnover of:

  • 50 per cent for those with an aggregated turnover of more than $1 billion;
  • 30 per cent for those with an aggregated turnover of $1 billion or less;
  • 15 per cent for Australian Charities and Not for profits Commission-registered charities (excluding schools and universities).

If a business or not-for-profit does not meet the additional turnover tests for the extension period, this does not affect their eligibility prior to 28 September 2020.

The JobKeeper Payment will continue to remain open to new recipients, provided they meet the existing eligibility requirements and the additional turnover tests during the extension period.

Other eligibility rules for businesses and not-for-profits and their employees remain unchanged. Further information on those rules is available at the Australian Tax Office website.

A factsheet is also available at the Treasury website.