This article provides an update on the JobKeeper program, announced by the government on the 21 of July 2020.

In short, the JobKeeper program is to be extended with changes to the rates paid. Businesses will be required to re-apply and satisfy the Turnover tests at two stages.

I hope the following explains the latest in a simple way.

Should you have any question please contact me or my staff, we will do our best to assist you in any way we can.

JOBKEEPER AMENDMENTS

Under the current scheme, the JobKeeper payment of $1,500 per fortnight will continue to be paid until the 27 of September 2020.

On Tuesday the 21 July, the Government announced that JobKeeper payments will continue for further 6 months, from the 28 September 2020 to 28 March 2021.

Two tiers of payment rates will be introduced. Payments will be reduced for full-time workers, and a different rate paid to casuals and part-timers.

Businesses and not-for-profits will be required to demonstrate an actual decline in turnover.

Payment Rates

From 28 September 2020 to 3 January 2021, the JobKeeper Payment rates will be: 

Tier 1:

  • $1,200 per fortnight for all eligible employees who, in the four weeks of pay periods before 1 March 2020, were working in the business or not-for-profit for 20 hours or more a week on average, and for eligible business participants who were actively engaged in the business for 20 hours or more per week on average in the month of February 2020; and 

Tier 2:

  • $750 per fortnight for other eligible employees and business participants. 

From 4 January 2021 to 28 March 2021, the JobKeeper Payment rates will be: 

Tier 1:

  • $1,000 per fortnight for all eligible employees who, in the four weeks of pay periods before 1 March 2020, were working in the business or not-for-profit for 20 hours or more a week on average and for business participants who were actively engaged in the business for 20 hours or more per week on average in the month of February 2020; and 

Tier 2:

  • $650 per fortnight for other eligible employees and business participants.
PeriodFull rate per fortnightLess than 20hrs worked per fortnight rate
28 September 2020 to 3 January 2021$1,200$750
4 January 2021 to 28 March 2021$1,000$650

Turnover Tests

The Turnover test for JobKeeper will remain the same at a decline of 30% for those with an aggregated turnover of $1 billion or less.

This test will become a retrospective test (based on actual GST turnover), rather than the previous prospective test (previously based on expected GST turnover).

Businesses and not-for-profits will need to apply and satisfy this again in October 2020 and January 2021, to demonstrate they have suffered an ongoing significant decline in turnover using actual GST turnover (for each quarter), rather than projected GST turnover.

  • Extension period 28 September 2020 to 3 January – use actual GST turnover for the June and September 2020 quarters (against previous corresponding 2019 quarters)
  • Extension period 4 January 2021 to 28 March 2021 – use actual GST turnover for the June, September and December 2020 quarters (against previous corresponding 2019 quarters).

To note, if a business or not-for-profit does not meet the additional turnover tests for the extension period, this does not affect their eligibility prior to 28 September 2020. 

The eligibility rules remain the same.

The Commissioner will have discretion to set out alternative tests in other specific circumstances.

The above eligibility will be based on details reported in the BAS. As the BAS deadlines are later in the following month, entities will need to assess their eligibility in advance of the BAS deadline in order to meet the wage condition (requirement to pay their eligible employees in advance of receiving the JobKeeper payment in arrears from the ATO).

Should you have any questions on the items above please contact myself or the staff on 02 9923 2959 or mark@mcaccg.com.au

In the event that the office is forced to be shut down again, please contact Mark on 0439 992 838.

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