COVID-19 | JobKeeper 2.0

Jul 23, 2020 | Coronavirus 2020, Employers

JOBKEEPER EXTENSION

The Government has announced a six month extension to the JobKeeper payment which will run from 28 September 2020 to 28 March 2021. There have been changes to the payment rates for the extended periods as well as more frequent testing of actual turnover to confirm eligibility. Eligibility criteria for employees & business participants will remain the same.

Please note that these changes only come into effect from 28 September 2020.

Extended Eligibility Criteria – Employers

An employer with an annual turnover of $1 billion or less, will be eligible if their actual GST turnover has fallen by 30% or more. This criteria must be met each quarter as follows:

  • For payments made between 28 September 2020 and 3 January 2021, compare actual GST turnover for June & September 2020 quarters with actual GST turnover for June & September 2019 quarters.

  • For payments made between 4 January 2021 and 28 March 2021, compare actual GST turnover for June, September & December 2020 quarters with actual GST turnover for June, September & December 2019 quarters.

It is up to businesses to determine the fall in actual turnover for each of the above periods. This is typically done through the details reported on the Business Activity Statements as the requirement is now to report actual turnover as opposed to projected turnover. Businesses should keep their records up to date in order to assess their eligibility and ensure sufficient wages are paid to eligible employees on time. If this becomes an issue however, the Commissioner of Taxation will have discretion to extend the time a business has to pay the wages so that they can first confirm their eligibility.

 

Changes to Payment Rates

The JobKeeper payment rate will be reduced during the extended period of 28 September 2020 to 28 March 2021 however the eligibility criteria for employees has not changed. There are two different payment rates for eligible employees which are outlined below.

Between 28 September 2020 and 3 January 2021

  • Eligible employees will receive $1,200 per fortnight if the employee worked 20 hours a week or more (on average) in the four weeks of pay periods before 1 March 2020. Eligible business participants need to have been actively engaged in the business for 20 hours a week or more (on average) in February 2020.

  • All other eligible employees & business participants will receive $750 per fortnight.

Between 4 January 2021 and 28 March 2021

  • Eligible employees will receive $1,000 per fortnight if the employee worked 20 hours a week or more (on average) in the four weeks of pay periods before 1 March 2020. Eligible business participants need to have been actively engaged in the business for 20 hours a week or more (on average) in February 2020.

  • All other eligible employees & business participants will receive $650 per fortnight.

 

Other general rules for the JobKeeper payment have not changed, such as:

  • Payments will continue to be made by the ATO to employers in arrears.

  • Payments made to employees will still need to be paid at the applicable amount (before tax).

For further information on the original requirements of the JobKeeper payment go to: https://www.tspaccountants.com.au/covid-19-jobkeeper-payment/

 

Contact TSP

You should always seek advice from your Accountant before making any decisions.

If you would like assistance with JobKeeper eligibility assessment or further information about the changes and how it will affect your business please contact our office.