JobKeeper to continue for eligible businesses until March - Accounts NextGen

 The Australian Prime Minister Scott Morrison gave a lifeline to the small businesses by continuing the JobKeeper scheme for the eligible businesses until March 2021. Due to the COVID-19 crisis, this unemployment benefit scheme is extended for six months.

This critical decision came into existence two days before the Treasurer Josh Frydenberg delivered the federal budget. The job keepers can slate better with this extension until March 2021 to better support their business. 

However, the tax accountants in Melbourne are of the view that this subsidy scheme will now be established as a two-tier payment mode scheme. This scheme was reframed with some extensions, tightened eligibility, and pay cuts.

What Changes You Will See in This Newly Extended JobKeeper Scheme?

●       The second phase of this scheme will run until 28 March 2021.

●       The scheme will be reframing and based upon the hours and has a two-tier payment system.

●       The first and the higher payment is for those who work for 20 hours or more in a week. These people are eligible for the fortnight payment of $1200 until 3 January 2021. After that, the amount will be reduced to $1000.

●       Those who work for less than 20 hours per week will receive the low tier pay scheme with a $750 till January 2021. After that, this will be reduced to $650.

●       Further, the eligibility of the JobKeeper will be tested again in October and during early January 2021. This will be done according to the turnover of the business decline.

The PM further says that this JobKeeper scheme will effectively target the businesses and maintain their livelihood.

According to tax accountants, Melbourne, the government still pays special attention to the reopening of the economy. However, the extension of this scheme recognises it as an essential part of the business; some parts of the business will still be affected the same as now.

Sadly, the pandemic situation of the COVID-19 kept the businesses closed for several months, and many individuals lost their jobs during this crisis. This is why new business modules and schemes have been launched in Australia to reopen the economy and provide maximum wages to the employees.

Businesses Need to Apply Again

The Australian Prime Minister Morrison made a statement that some changes have been made in the subsidy scheme to maintain the businesses' responsiveness. 

But to continue and receive the benefit of this scheme, businesses need to show that they are eligible for this scheme and faced a downturn in the revenues.

Further, from 28 September 2020, the business individuals need to reassess their eligibility for this scheme by showing the actual turnover downfall they receive during this lockdown.

The companies need to demonstrate that they have experienced the business downfall and are eligible for the JobKeeper scheme in the Quarter of December.

 Mutual Obligation Returns

The PM also announces some essential changes to the JobKeeper supplement, that wind up in late September 2020. The tax accountants in Melbourne announced that the wages would fall from $550 to $250 till the end of 2020. 

Further, Mr. Morrison says that the wages will be increased to $300 fortnight in the income free area. However, the recipients need to enter the mutual obligation contracts before 4 August 2020.

This will occur in two phases and help the individual connect with the employment services again and make him eligible to search for jobs four times monthly. Nearly 960,000 businesses will enroll in this scheme to cover 3.5 million workers. However, the number will be lower than expected if some businesses fail to pass the eligibility criteria.