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COVID-19 Business Continuity – 28th July

I’m here with the COVID-19 continuity update for Australian businesses on Tuesday 28th July.

JobKeeper is being extended in a limited capacity from the end of September. Only businesses that have seen consistently lower turnover will be able to receive payments under the JobKeeper extension. I’ve been getting a few questions about this so I want to map it out for clarity:

To meet the basic eligibility test for the JobKeeper extension, your actual turnover must have fallen by 30% in both the June quarter 2020 (April, May and June) and the September quarter 2020 (July, August, September) relative to the comparable quarters in 2019. As I noted in my briefing on 21st July, I believe this will significantly curtail the eligibility for the JobKeeper going forward.

In the following basic scenario (common for businesses such as gyms, retailers, hospitality), both quarters are 30% down compared to the same quarters last year, which means they meet the test for decline in turnover. This business would be eligible to receive JobKeeper until 3rd January 2021.
Example of JobKeeper extension chart eligible
In the next scenario, think of a business that was hit hard and fast by the downturn but then managed to get their business back on track. This business won’t meet the eligibility criteria for the restricted version of the JobKeeper extension because the turnover in only one of their quarters in 2020 was 30% down compared to the same quarters last year.

Example of JobKeeper extension chart - not eligible

To be eligible for the JobKeeper extension for another quarter from Jan 2021, you’ll also need to pass the turnover decline test for the December 2020 quarter (October, November, December).

For more information, click here for the Treasury JobKeeper Extension website.

Please note that we haven’t seen any advice from Treasury or the ATO as yet regarding the alternative tests that some fast growing Tenfold clients used to access JobKeeper in the first round of support. We’ll bring you details on this when we find out further details.

If you have any questions, please speak to your Tenfold Business Coach.

Ash

Ashley Thomson B.Eng(Hons), Grad. Dip. Mgmt, MEI
Managing Director
Tenfold Business Coaching

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