JobKeeper 2.1
Confucius say “when government stimulus comes, do not use all of it…”
Scomo is at it again, he has tweaked the next round of jobkeeper payments announced on 21 July 2020 to make it easier for businesses to access.
Here are the important parts you should be aware of:
Eligibility
To receive JobKeeper from 28 September 2020, employers will need to reassess their eligibility with reference to actual GST turnover for the September 2020 quarter (for JobKeeper payments between 28 September to 3 January 2021), and again for December 2020 quarter (for payments between 4 January 2021 to 28 March 2021).
Eligible employers
The broad eligibility tests to access JobKeeper remain the same with an extended decline in turnover test.
An employer that had ceased trading, commenced after 1 March 2020, or was not pursuing its objectives in Australia at that date, is not eligible.
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.
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30 March to 27 September 2020 |
28 September to 3 January 2021 |
4 January 2021 to 28 March 2021 |
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Decline in turnover |
Projected GST turnover for a relevant month or quarter is expected to fall by at least 30% (15% for ACNC-registered charities, 50% for large businesses) compared to the same period in 2019.* |
Actual GST turnover in the September 2020 quarter (July, August & September) fell by at least 30% (15% for ACNC-registered charities, 50% for large businesses) compared to the same period in 2019. The decline for the quarter needs to be met to continue receiving JobKeeper payments. |
Actual GST turnover in the December 2020 quarter (October, November & December) fell by at least 30% (15% for ACNC-registered charities, 50% for large businesses) compared to the same period in 2019. The decline for the quarter needs to be met to continue receiving JobKeeper payments.
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* Alternative tests potentially apply where a business fails the basic test and does not have a relevant comparison period. |
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Most businesses will generally use their Business Activity Statement (BAS) reporting to assess eligibility. However, as the BAS deadlines are generally not due until the month after the end of the quarter, eligibility for JobKeeper will need to be assessed in advance of the BAS reporting deadlines to meet the wage condition for eligible employees. However, the ATO will have discretion to extend the time an entity has to pay employees in order to meet the wage condition.
Alternative arrangements are expected to be put in place for businesses and not-for-profits that are not required to lodge a BAS (for example, if the entity is a member of a GST group).
Alternative tests
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. These alternative tests have not as yet been released.
Eligible employees
Employee eligibility tests will change from 3 August 2020 onwards.
The proposed changes mean that employees who were previously ineligible for JobKeeper because they were not employed by the entity on 1 March 2020 may now be able to receive JobKeeper payments if they were employed by the entity on 1 July 2020 and can fulfil all of the other eligibility requirements.
JobKeeper payments
From 28 September 2020 the payment rates for JobKeeper will reduce and split into a higher and lower rate.
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JobKeeper |
30 March to 27 September 2020 |
28 September to 3 January 2021 |
4 January 2021 to 28 March 2021 |
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Payment |
$1,500 per fortnight per employee |
$1,200 per fortnight per employee or business participant who worked > 20 hours per week
$750 per fortnight per employee or business participant working < 20 hours per week
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$1,000 per fortnight per employee or business participant who worked > 20 hours per week
$650 per fortnight per employee or business participant working < 20 hours per week |
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JobKeeper fortnight |
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Payment rate |
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1 |
30 March 2020 – 12 April 2020 |
JobKeeper 1.0 |
Eligibility period 1 |
$1,500 per fortnight |
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2 |
13 April 2020 – 26 April 2020 |
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3 |
27 April 2020 – 10 May 2020 |
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4 |
11 May 2020 – 24 May 2020 |
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5 |
25 May 2020 – 7 June 2020 |
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6 |
8 June 2020 – 21 June 2020 |
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7 |
22 June 2020 – 5 July 2020 |
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8 |
6 July 2020 – 19 July 2020 |
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9 |
20 July 2020 – 2 August 2020 |
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10 |
3 August 2020 – 16 August 2020 |
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11 |
17 August 2020 – 30 August 2020 |
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12 |
31 August 2020 – 13 September 2020 |
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13 |
14 September 2020 – 27 September 2020 |
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14 |
28 September 2020 – 11 October 2020 |
JobKeeper 2.0 |
Eligibility period 2 |
High rate: $1,200 Low rate: $750 |
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15 |
12 October 2020– 25 October 2020 |
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16 |
26 October 2020 – 8 November 2020 |
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17 |
9 November 2020 – 22 November 2020 |
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18 |
23 November 2020 – 6 December 2020 |
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19 |
7 December 2020 – 20 December 2020 |
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20 |
21 December 2020 – 3 January 2021 |
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21 |
4 January 2021 – 17 January 2021 |
Eligibility period 3 |
High rate: $1,000 Low rate: $650 |
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22 |
18 January 2021 – 31 January 2021 |
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23 |
1 February 2021 – 14 February 2021 |
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24 |
15 February 2021 – 28 February 2021 |
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25 |
1 March 2021 – 14 March 2021 |
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26 |
15 March 2021 – 28 March 2021 |
Can I keep getting JobKeeper until September?
“Once you’re in you’re in” - If your business and your employees passed the original eligibility tests to access JobKeeper, and you have fulfilled your wage requirements, you can continue to claim JobKeeper up until the last JobKeeper fortnight that ends on 27 September 2020.
Stay safe. Shake tax, not hands!
Get in touch with m+h Private tax specialists today on +61 3036 7174 if you need support for you and your business.
As always, the above is general in nature, please discuss with your trusted advisor.