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The Federal government announced some tweaking of the detail contained in their July 21 Press Release
Yesterday the Federal government announced some tweaking of the detail contained in their July 21 Press Release (details below) that extended the JobKeeper program through until the end of March 2021. As a consequence of the worsening Covid situation in Victoria and the adverse flow on effect to business by forced closures, the government softened some of the principles inherent in the 21 July announcement as follows:
We see both of these changes as very welcome and particularly helpful for Victorian businesses who are going through a very troubled time right now and potentially into the December quarter. The drop in turnover test would have been particularly unhelpful in its previously announced form for these businesses because there would have been the possibility of missing out on necessary support for the December quarter simply because their June quarter turnover had not fallen 30%. The updated employment date to 1 July is also welcome as there has been some employee movement since JobKeeper started and some recovering businesses had been taking on new employees. It would be a disappointing outcome if these employees were left out of the program.
While these changes will benefit businesses in Victoria they apply to all of Australia.
On July 21, the government announced a proposed extension to JobKeeper (let’s call it JobKeeper 2.0). In summary the proposal (if enacted) provides for:
More precise detail to be shared once legislation has passed through parliament.