JobKeeper 2.0 - Update

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The Treasury has now etched in stone the guidelines for the extended JobKeeper payments from 28 September 2020.

Here are the important facts all employers need to know:

Eligibility

To determine eligibility for the extension of JobKeeper (beyond 27 September 2020) employers must adopt an actual decline in turnover test as follows:

  • Extension 1 (28 September 2020 to 3 January 2021) employers must compare actual GST turnover for the September 2020 quarter to actual GST turnover for the September 2019 quarter.

  • Extension 2 (4 January 2021 to 28 March 2021) employers must compare actual GST turnover for December 2020 quarter to actual GST turnover for the December 2019 quarter.

Items to note

  • The result from the above test must be a decline of 30% or more to be eligible (applicable to business < $1b turnover)

  • When applying the turnover test, entities must use the same method (cash or accrual) that is used on the BAS, that is what is reported at G1

  • JobKeeper and cashflow boost payments received are not included in the turnover test above

  • There is no option to test a monthly (as previous), it must be tested on a quarterly basis

  • Entities must test September 2020 and December 2020 quarters independently. Eligibility for September 2020 does not mean you are eligible for the December 2020 quarter and vice versa

  • You do not need to re-enroll for the JobKeeper extension if you are already enrolled

  • The ATO has the power to set out alternative decline in turnover tests however these have not yet been released

Payments

A two-tier payment rate now will apply to payments from 28 September 2020.

 

Tier 1

Tier 2

Extension 1:

28 September 2020 to 3 January 2021

$1,200 per fortnight (before tax)

$750 per fortnight (before tax)

 

 

 

Extension 2:

4 January 2020 to 28 March 2021

$1,000 per fortnight (before tax)

$650 per fortnight (before tax)

 

 

 

Tier 1

  • Applies to eligible employees who worked for 80 hours or more in the four weeks before either 1 March 2020 or 1 July 2020; or

  • Eligible business participants who were actively engaged in business for 80 hours or more in February 2020

Tier 2

  • Applies to any other eligible employee or business participant not in tier 1

Current JobKeeper arrangements

The current JobKeeper arrangement continues as is until 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.

James Hoeftm+h Private