JobKeeper has been extended and will start from 28th September 2020 until 28th March 2021.

There will be 2 extensions- 28th September 2020 to 3rd January 2021 and 4th January 2021 to March 2021.

There are a number of changes which need to be taken into consideration before 28th September.

Key dates:

31 October 2020 – wage condition for JobKeeper extension 1

For the JobKeeper fortnights starting 28 September 2020 and 12 October 2020 only, the ATO are allowing employers until 31 October 2020 to meet the wage condition for all employees included in the JobKeeper scheme.

30 September 2020 – enrolments close for September fortnights

To claim payments for September you must enrol by 30 September if not already on JobKeeper.

28 September 2020 – JobKeeper extension 1 starts

The first extension covers the JobKeeper fortnights between 28 September 2020 and 3 January 2021.,

Business monthly declaration

You must identify your eligible employees and eligible business participant each month before making your business monthly declaration.

Your business monthly declaration needs to be completed between the 1st and 14th of each month to claim JobKeeper payments for the previous month. For example, to be reimbursed for JobKeeper payments paid to your employees in August you should complete your declaration by 14 September.

Enrolments closed for past fortnights

You can no longer enrol for the JobKeeper payment to claim for fortnights ending on or before 30 August 2020.

JobKeeper payment rates

The rates of payment in each extension period will depend on the number of hours the employee or business participant works from 28th September 2020.

There are 2 tiers in which need to be considered when looking at eligible employees:

Tier 1 rate: Tier 2 rate:
This rate applies to:

  • eligible employees who worked for 80 hours or more in the four weeks of pay periods before either 1 March 2020 or 1 July 2020, and
  • eligible business participants who were actively engaged in the business for 80 hours or more in February and provide a declaration to that effect.

 

This rate applies to:

  • any other eligible employees and eligible business participants who worked less than 80 hours

 

Extension 1: 28th September 2020 to 3rd January 2021

Tier 1 $1200 per fortnight (before tax)

Tier 2: $750 per fortnight (before tax)

Extension 2: 4th January 2021 – 28th March 2021

Tier 1 $1000 per fortnight (before tax)

Tier 2 $650 per fortnight (before tax)

 

What is different

  • Unlike when you calculated the original decline in turnover test, you do not use your projected GST turnover for the relevant quarter being tested. You use your current GST turnover.
  • You must use the accounting basis you used for GST reporting purposes which is either cash for accruals.

A GST accounting basis will apply to allocate supplies to a test period regardless of whether:

  • the supply was a taxable supply
  • you report GST on a monthly or quarterly basis, or
  • For many businesses registered for GST, this calculation will match the ‘total sales’ reported at G1 on your BAS minus GST payable (1A), where applicable.

If you are not registered for GST, you will work at your turnover using either the GST cash or accruals.

You can provide additional turnover information to demonstrate that you satisfy the actual decline in turnover test for the September quarter from the start of October onwards. You must provide it before you complete your November monthly declaration.

What doesn’t change

  • To claim for fortnights in the JobKeeper extension 1 or 2:
  • You don’t need to re-enrol for the JobKeeper extension if you are already enrolled for JobKeeper for fortnights before 28 September.
  • You don’t need to reassess employee eligibility or ask employees to agree to be nominated by you as their eligible employer if you are already claiming for them before 28 September.
  • You don’t need to meet any further requirements if you are claiming for an eligible business participant, other than those that applied from the start of JobKeeper relating to holding an ABN and declaring assessable income and supplies.

Can I keep getting JobKeeper until September?

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 (once you’re in, you’re in to the end of September).

If you meet the eligibility test once, you’re in it for the whole time.” The original eligibility test was a once only test although there are ongoing conditions that need to be satisfied for each JobKeeper fortnight.

Frequently asked questions

https://www.ato.gov.au/General/JobKeeper-Payment/In-detail/Employees–frequently-asked-JobKeeper-questions/

 

Written By Carly of our Office