Salon owners and employees take note โ€“ there has been major business news in the Australian landscape today. JobKeeper has been extended until March 2021, and will operate at a reduced rate.

Prime Minister Scott Morrison announced that businesses receiving payment will be subject to a new turnover test, applying a different rate for part-time and casual employees, in a more targeted scheme. The governmentโ€™s review into JobKeeper found that about 25 per cent of Australians on JobKeeper were receiving a pay rise of, on average, $550 per fortnight, accumulating thousands of dollars in added income over six months.

Balancing this, a new two-tiered payment system will be in effect from 28 September until 3 January, separating those who work over and under 20 hours a week.

To start, the top tier will receive $1,200 per fortnight, and the bottom tier will receive $750. From 4 January until 28 March, the top tier will receive $1,000 per fortnight, and the bottom tier will receive $650 per fortnight. If you are currently receiving $1500, this will continue until the legislated end date of September 27, from there you will receive $1200, or $750 if you work under 20 hours a week, until the new rates come into effect in January.

Employees who have lost their jobs are eligible for the JobSeeker payment, which is $565.70 per fortnight and has been boosted to $1,115.70 per fortnight by a $550 per fortnight Coronavirus Supplement. After September, this Supplement will be reduced to $250 per fortnight, creating a total fortnightly payment of $815.70.

For salon owners in need of JobKeeper, businesses will need to continue to show that they have suffered a loss of 30 to 50 per cent depending on business size, for both the June and September quarters, to be eligible for the December quarter. They must then prove their losses in the December quarter to be eligible in 2021.

Stay educated, distanced and safe everyone!