JobKeeper 2.0 & JobTrainer – Your NEED TO KNOW guide

One can only assume Scomo and Junior Burger were never told money doesn’t grow on trees. Treasury’s printing presses have been running faster than Officeworks can supply ink. We have not seen this stimulus flow through the economy for sometime (possibly ever), but at what cost?

Well your guess is as good as ours, but what we do know are the specifics of Jobkeeper 2.0.

JobKeeper 2.0

Mark the following date in your calendar – 28 September 2020. This is the end of JobKeeper 1.0 and the beginning of 2.0. The second tranche of the JobKeeper scheme changes the eligibility test for employers, in addition to the method and amount paid to employees.

The good news is, for those already receiving JobKeeper, things will generally remain unchanged until the above date. If you’re in, you’re in. This delivers the schemes certainty that many stakeholders had been screaming out for.

Eligibility – 2.0

To continue receiving JobKeeper payments beyond 28 September 2020, employers will need to reassess their eligibility with reference to actual GST turnover for the June 2020 and September 2020 quarters (for payments between 28 September 2020 and 3 January 2021), and again for the June 2020, September 2020 and December 2020 quarters (for payments between 4 January 2021 and 28 March 2021). See table below.

Eligible employers

For the majority of businesses, the eligibility tests to access JobKeeper remain the same with an extended decline in turnover test:

• On 1 March 2020, the entity carried on a business in Australia and it met the decline in turnover test (greater than 30% turnover decline).

There are slightly different rules for charities.

Commencement date

1 March 2020 is an absolute date. An employer that had ceased trading before or commenced after 1 March 2020, is not eligible.

*Additional tests apply from 28 September 2020.

Additional decline in turnover tests

To receive JobKeeper payments from 28 September 2020, businesses will need to meet the basic eligibility tests and an extended decline in turnover test based on actual GST turnover. 

	30 March to 27 September 2020 (Jobkeeper 1.0)	28 September to 3 January 2021 (Jobkeeper 2.0)	4 January 2021 to 28 March 2021 (Jobkeeper 2.0)
Decline in turnover	Projected GST turnover for a relevant month or quarter is expected to fall by at least 30% compared to the same period in 2019.*	Actual GST turnover in the June and September 2020 quarters fell by at least 30% compared to the same periods in 2019. The decline for both of the quarters needs to be met to continue receiving JobKeeper payments.	Actual GST turnover in the June, September and December 2020 quarters fell by at least 30% compared to the same periods in 2019. The decline for all three of the quarters needs to be met to continue receiving JobKeeper payments.
* Alternative tests potentially apply where a business fails the basic test and does not have a relevant comparison period.

Alternative tests

The ATO 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.

Show me the money

JobKeeper	30 March to 27 September 2020 (Jobkeeper 1.0)	28 September to 3 January 2021 (Jobkeeper 2.0)	4 January 2021 to 28 March 2021 (Jobkeeper 2.0)
Payment	$1,500 per fortnight per employee	$1,200 per fortnight per employee or business participant who worked more than 20 hours per week $750 per fortnight per employee or business participant working less than 20 hours per week	$1,000 per fortnight per employee or business participant who worked more than 20 hours per week $650 per fortnight per employee or business participant working less than20 hours per week

Assessing if an employee has worked 20 hours or more

JobKeeper payments from 28 September 2020 are paid at a lower rate for employees who worked less than 20 hours per week on average in the four weeks of pay periods before 1 March 2020.

The Commissioner of Taxation will have discretion to set out alternative tests for those situations where an employee’s or business participant’s hours were not usual during February 2020. Also, the ATO will provide guidance on how this will be dealt with when pay periods are not weekly.

JobTrainer

The $2.5bn JobTrainer package aims to retrain, upskill and open new job opportunities.

JobTrainer for employers

The JobTrainer package has expanded the number of businesses that can access the 50% apprentice wage subsidy and extends the subsidy until 31 March 2021 (from 30 September 2020).

Originally, only businesses with less than 20 employees or larger employers employing apprentices/trainees let go by a small business were able to access the subsidy (for wages paid to apprentices employed by them as at 1 March 2020).

Now, businesses with under 200 employees can access the subsidy for apprentices employed from 1 July 2020. Employers will be reimbursed 50% of an eligible apprentice’s wage up to a maximum of $7,000 per quarter per apprentice.

Employers will be able to access the subsidy after an assessment by the Australian Apprenticeship Support Network.

Eligibility

For small businesses:

• Employ fewer than 20 people, or

• A small business with fewer than 20 people, using a Group Training Organisation, and

• The apprentice or trainee was undertaking an Australian Apprenticeship with you on 1 July 2020 for claims after this date. Claims prior to 1 July 2020, will continue to be based on the 1 March 2020 eligibility date.

Claims are open now for small business. 

For medium sized businesses:

• Employ 199 people or fewer, or

• A medium sized business with 199 people or fewer, using a Group Training Organisation, and

• The apprentice or trainee was undertaking an Australian Apprenticeship with you on 1 July 2020.

Claims open 1 October 2020 for medium sized businesses.

You will need to provide evidence of wages paid to the apprentice. If the business subsequently is unable to retain the apprentice, another business can access the incentive if they then employ and pay wages to the apprentice.

Final claims for payment must be lodged by 30 June 2021.

How does the apprenticeship subsidy and JobKeeper work together?

They don’t. It is one or the other.

An employer will not be eligible to claim the apprentice wage subsidy for any period where they choose to claim the JobKeeper payment for the same apprentice.

An employer or Group Training Organisation will not be eligible for the JobKeeper payment where the employer is in receipt of an Australian Government wage subsidy for the same Australian Apprentice (for example Supporting Apprentices and Trainees and the Australian Apprentice Wage Subsidy).

Shake tax, not hands

Get in touch with m+h Private JobKeeper & JobTrainer Specialists today on +61 3036 7174 to see how we can help deliver the best support to you and your business.

As always, the above is general in nature, please discuss with your trusted advisor.