We’re at the start of December now and so it’s a good time to assess whether you may be eligible for JobKeeper Extension 2.
JobKeeper Extension 2
As a reminder, JobKeeper Extension 2 is for the period 4 January 2021 to 28 March 2021. To qualify for this phase of JobKeeper, your actual GST turnover for the December quarter 2020 (Oct/Nov/Dec 2020) must be 30% less than the turnover of the comparison period of December 2019 (Oct/Nov/Dec 2019).
Some businesses will:
1. Remain in JobKeeper (on reduced rates),
2. Others will drop out at the end of December,
3. While others who have missed out on payments in the Oct to Dec period may become eligible again for the Jan to Mar period.
Don’t forget: the alternative test may apply to your business if the basic test doesn’t.
There are several options for alternative tests, depending on your business circumstances. Do the numbers again with your business coach prior to the end of the quarter so you can plan ahead to see whether you are eligible.
If your business is eligible, you will receive wage subsidies for employees who were on your books prior to 1 July 2020. The subsidies will be tiered for full time and part time employees, and at the reduced rates:
For a reminder on how to identify the reference period, see my briefing from 24 September.
HomeBuilder Program – extension
There was an announcement recently about changes to the HomeBuilder program. The key changes to the HomeBuilder program include:
The scheme will be extended to 31 March 2021;
- The property price cap for new build contracts in NSW has been extended to $950,000 and in Victoria it’s gone up to $850,000, for contracts signed from 1 January 2021. (All other States and Territories remain capped at $750,000.)
- A $15,000 grant is available for new builds and substantial renovations for contracts signed between 1 January 2021 and 31 March 2021.
- The deadline for all grant applications has been extended to 14 April 2021.
- The construction commencement timeframe has been extended from three months to six months for all HomeBuilder applicants.
What this means for Australian business
The extension to the HomeBuilder program means there will be more funds flowing to the volume building industry and propping up the entire sector.
This will flow on to other sectors and continue to build confidence, as we can already see with the increase in the approvals for detached dwelling during the three months to October 2020 compared to the same time last year. Across the east coast approvals increased in Victoria (+23%), QLD (+18%), NSW (+18%).
With the RBA keeping in the official cash rate at 0.10% and expecting it will stay low for the next 3 years, it’s a borrower’s market.
Ashley Thomson B.Eng(Hons), Grad. Dip. Mgmt, MEI
Tenfold Business Coaching