The legislation has now been passed extending the JobKeeper scheme by a further six months to 28 March 2021, replacing the $1,500 a fortnight payment with a new two-tier payment rate from 28 September 2020.
In addition, from 3 August 2020 the relevant start date of employment will move from 1 March to 1 July 2020, increasing employee eligibility for the existing scheme and the extension.
The payment rate of $1,500 per fortnight for eligible employees and business participants will be reduced to $1,200 per fortnight from 28 September 2020 and to $1,000 per fortnight from 4 January 2021. From 28 September 2020, lower payment rates will apply for employees and business participants that worked fewer than 20 hours per week in the relevant reference period.
From 28 September 2020
To be eligible for the first JobKeeper Payment extension period from 28 September 2020 to 3 January 2021, businesses will need to demonstrate that their actual GST turnover has fallen in the September quarter 2020 (July, August, September) relative to a comparable period (generally the corresponding quarter in 2019).
Businesses with an aggregated turnover of $1 billion or less need to demonstrate a decline in turnover of at least 30%.
The turnover of the business will generally be assessed on details reported in the Business Activity Statement (BAS).
For the period from 28 September 2020 to 3 January 2021, the JobKeeper Payment rates will be:
• $1,200 per fortnight for all eligible employees who were working in the business for 20 hours or more a week on average in the four weeks of pay periods before either 1 March 2020 or 1 July 2020, and for eligible business participants who were actively engaged in the business for 20 hours or more per week on average; and
• $750 per fortnight for other eligible employees and business participants.
From 4 January 2021
To be eligible for the second JobKeeper Payment extension period from 4 January 2021 to 28 March 2021, businesses will need to demonstrate that their actual GST turnover has fallen in the December quarter 2020 (October, November, December) relative to a comparable period (generally the corresponding quarters in 2019).
Businesses with an aggregated turnover of $1 billion or less need to demonstrate a decline in turnover of at least 30%.
The turnover of the business will generally be assessed on details reported in the Business Activity Statement (BAS).
For the period from 4 January 2021 to 28 March 2021, the JobKeeper Payment rates will be:
• $1,000 per fortnight for all eligible employees who were working in the business for 20 hours or more a week on average in the four weeks of pay periods before either 1 March 2020 or 1 July 2020, and for business participants who were actively engaged in the business for 20 hours or more per week on average; and
• $650 per fortnight for other eligible employees and business participants.
Other Matters
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.
The Commissioner of Taxation has now released rules on 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 new alternative tests are broadly in line with the original.
Businesses will generally be able to assess eligibility based on details reported in the Business Activity Statement (BAS).
The ATO has now confirmed that while Jobkeeper payments are ordinary income, they are not included in the calculation of aggregated turnover.
Key Dates
- Now: notify your employees about the JobKeeper payment they can expect to receive.
- 28 September 2020: start paying your eligible employees tier 1 and tier 2 JobKeeper rates based on their hours worked.
- From 28 September: if using Single Touch Payroll to notify us of your eligible employees, provide each eligible employee’s tier as part of your normal payday reporting. Enrol for the JobKeeper payment if you’re doing so for the first time.
- Between 1 – 14 October 2020: complete your October JobKeeper monthly business declarations to receive your reimbursement for the September fortnights.
- Between 1 – 31 October 2020: prepare and submit your business’s actual decline in turnover to the ATO.
- Before 31 October 2020: ensure you meet the wage condition for all eligible employees included in the JobKeeper scheme for the JobKeeper fortnights starting 28 September 2020 and 12 October 2020.
- From 1 November 2020: complete your monthly business declaration and confirm what payment tier you are claiming for each employee.
Contact our office
Please contact us if you have any queries regarding your ongoing eligibility or any other JobKeeper queries.
Kind Regards,
Eric Cirulis
Director/CEO