WILL THE JOBKEEPER PAYMENT SCHEME EXTENSION CREATE MORE ZOMBIE BUSINESSES

  1. a two-tiered payment rate; and
  2. new eligibility tests for each phase.

PHASE 1 OF WITHDRAWAL: 28 SEPTEMBER 2020 TO 3 JANUARY 2021

On 28 September 2020, phase 1 of the withdrawal will begin.

  1. a lower payment rate of $750 per fortnight for other eligible employees and business participants that work fewer than 20 hours per week; and
  2. a further decline in turnover test which will assess actual GST turnover (rather than projected GST turnover) for both the June and September quarters 2020.

PHASE 2 OF WITHDRAWAL: 4 JANUARY 2021 TO 28 MARCH 2021

On 4 January 2021, phase 2 of the withdrawal will begin.

  1. a reduction in the lower fortnightly payment rate of $750 to $650 for other eligible employees and business participants that work fewer than 20 hours per week; and
  2. an additional decline in turnover test which will assess actual GST turnover (rather than projected GST turnover) for each of the June, September and December quarters 2020.

WITHDRAWN — 28 MARCH 2021

On 28 March 2021, the JobKeeper Payment is scheduled to be completely withdrawn.

  • Where it is not appropriate to compare actual turnover in a quarter in 2020 with actual turnover in a quarter in 2019, the Commissioner of Taxation will have discretion to set out alternative tests.

RISE OF THE ZOMBIE BUSINESS

We expect that the extension of the JobKeeper Payment Scheme will lead to the creation of more zombie businesses.

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