As our response to COVID-19 continues to evolve, the Australian Government recently announced the JobKeeper extension. In addition to this, the New South Wales Government introduced the Small Business Recovery Grant.
We’ve broken down the changing eligibility criteria for the JobKeeper extension, and how you can apply for the Small Business Recovery Grant in NSW below.
The JobKeeper extension was implemented to support the many Australian businesses and their employees as still affected by COVID-19.
Businesses who were originally eligible for JobKeeper had to have an annual turnover of less than $1 billion. They also had to have experienced a 30 per cent decrease in their annual turnover, compared to a similar period in the previous year.
Employees of eligible businesses would receive $1,500 a fortnight.
JobKeeper was due to run from 30 March to the fortnight ending 27 September 2020. The JobKeeper extension will now run through to 28 March 2021.
You can learn more about the initial introduction of JobKeeper on our blog here.
It’s important to know that not all businesses who are currently receiving JobKeeper will be eligible for the extension.
The new criteria are as follows:
To receive the JobKeeper Payment over the two extension periods, businesses will need to compare their quarterly GST turnover to the same period in the prior year.
The first period will require businesses to compare their June 2020 and September 2020 quarters with their June and September 2019 quarters.
The second period will need businesses to compare their June, September and December 2020 with the same quarters in 2019.
The 30% decline in turnover must be met in all quarters, to continue to be eligible for JobKeeper. The Treasurer has advised that alternative tests will be released, we are expecting more details on these late August 2020.
The Full rate will start at $1,200 a fortnight in the first period. It will then drop to $1,000 a fortnight in the second extension period.
The Partial rate will be $750 a fortnight in the first extended period. This will then decrease to $650 a fortnight in the second extension period.
To be eligible for the Full Payment:
Employees and business participants need to have worked, or actively participated in, the business for more than 20 hours per week on average in the four weeks prior to 1 March 2020.
To be eligible for Partial Payment:
Employees and business participants need to have worked, or actively participated in, the business for less than 20 hours per week on average in the four weeks prior to 1 March 2020
If you’d like to learn more about the JobKeeper extension, head to the Australian Treasury website here.
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The Grant was introduced by the NSW Office of State Revenue to help small businesses with the costs of safely reopening during COVID-19.
Grants are available for between $500 and$3,000, but your business must fit the following eligibility criteria:
To be eligible for the Small Business Recovery Grant, your business must fall under one of the following categories:
For a full list of sub-services, head to the Service NSW website.
Applications for the Small Business Recovery Grant close Sunday 16 August 2020. Visit the Service NSW website to submit your application.
Are you still unsure about the JobKeeper extension and Small Business Recovery Grant? Let Hillier’s Advisors guide you through it.
We offer a range of business advisory services and can help ease the burden of determining your business eligibility. Contact us today!
Since 1989 Hillier’s Advisors have been delivering financial services to individuals, businesses and business owners across Newcastle and the wider Hunter Region. A major focus for the Hillier’s Advisors team and the work we do is providing the right financial advice when our clients need it, not just when they ask for it.
