On 21 July 2020, the Government announced that JobKeeper would be extended to 28 March 2021, but it will have reduced payments to employers and it will be harder to qualify receive it.
All employers wanting to claim JobKeeper payments from 28 September 2020 will need to reassess their eligibility again and prove that their turnover has declined based on actual figures.
Some businesses that did not qualify for the original JobKeeper payments may find that they now qualify for the new JobKeeper payments.
The payment rate of $1,500 per fortnight for eligible employees and business participants will be reduced, and lower payment rates will apply for employees and business participants that worked fewer than 20 hours per week. Businesses and not-for-profits will be required to nominate which payment rate they are claiming for each of their eligible employees (or business participants).
The JobKeeper Payment will continue to be made by the ATO to employers in arrears. Employers will continue to be required to make payments to employees equal to, or greater than, the amount of the JobKeeper Payment (before tax), based on the payment rate that applies to each employee. This is called the wage condition.
Alternative arrangements will be put in place for businesses and not-for-profits that are not required to lodge a BAS.
UP UNTIL 27 SEPTEMBER 2020
Nothing changes. If your business and your employees have passed the original eligibility tests for JobKeeper and you have paid the required wages amounts each JobKeeper fortnight, then you can continue to claim JobKeeper up until 27 September 2020.
The JobKeeper Payment will continue to remain open to new recipients, provided they meet the existing eligibility requirements and the turnover tests.
28 SEPTEMBER 2020 TO 3 JANUARY 2021
All businesses wanting to receive JobKeeper will need to reassess their eligibility. You will need to demonstrate that your ACTUAL GST turnover (as reported on your Business Activity Statement) for BOTH the June 2020 and September 2020 quarters have decreased by the relevant amount when compared to the corresponding June 2019 and September 2019 quarters. This is for each quarter as a stand-alone quarter, and is not a combination of both quarters, or one or the other.
The decline in turnover test remains the same as the existing rules, being:
- Entities with turnover greater than $1 billion – 50%.
- Entities with turnover less than $1 billion – 30%.
- ACNC registered charities (excluding schools and universities) – 15%.
The payment rate will be reduced from $1,500 per fortnight to $1,200 per fortnight for eligible employees and eligible business participants who work more than 20 hours per week, and to $750 per fortnight for eligible employees and eligible business participants who work less than 20 hours per week.
4 JANUARY 2021 TO 28 MARCH 2021
All businesses wanting to receive JobKeeper will need to again reassess their eligibility. You will need to demonstrate that your ACTUAL GST turnover (as reported on your Business Activity Statement) for ALL 3 of the June 2020, September 2020 and December 2020 quarters have decreased by the relevant amount when compared to the corresponding June 2019, September 2019, and December 2019 quarters. This is for each quarter as a stand-alone quarter, and is not a combination of both quarters, or one or the other.
The payment rate will be reduced further to $1,000 per fortnight for eligible employees and eligible business participants who work more than 20 hours per week, and to $650 per fortnight for eligible employees and eligible business participants who work less than 20 hours per week.
The Commissioner of Taxation will have discretion to set out alternative tests that would establish eligibility in specific circumstances where it is not appropriate to compare actual turnover in a quarter in 2020 with actual turnover in a quarter in 2019, in line with the Commissioner’s existing discretion.
The existing employee eligibility requirements have not changes, and are as follows:
- currently employed and were employed by the employer at 1 March 2020;
- full time, part time, or long term casuals;
- at least 18 years of age, or aged 16 to 17 years and independent or not undertaking full time study;
- an Australian resident or the holder of a Subclass 444 (Special Category) visa; and
- not in receipt of a Job Keeper payment from another employer.
To determine which rates employees are eligible for, the average hours over the month of February 2020 will be used.
The Commissioner of Taxation will have discretion to set out alternative tests where an employee’s or business participant’s hours were not usual during the February 2020 reference period.
BUSINESS PARTICIPATION ENTITLEMENT
Sole traders and some other entities (such as partnerships, trusts or companies) may be entitled to the JobKeeper Payment scheme under the business participation entitlement. A limit applies of one JobKeeper payment per fortnight for one eligible business participant. Sole traders, one partner in a partnership, one beneficiary of a trust, and one director or shareholder of a company may be regarded as an eligible business participant.
The ATO will release their specific requirements over the next 2 months for us to report on your business eligibility.
In the meantime, please feel free to contact us of you have any questions about Jobkeeper 2.0.
For more information please follow this link.
We fully understand that times are tough at the moment, and like for your business, our team’s wages need to be paid as well as other operating costs.
|ACTION||OUR PRICE EXC. GST|
|Employer Eligibility Assessment & Enrolment – Oct 2020||$250 one off|
|Employer Eligibility Assessment & Enrolment – Jan 2021||$250 one off|
|Monthly JobKeeper Declaration Report, including ATO requirements and Employee changes||$150 monthly|