JobKeeper 2.1 - More Updates

Posted 7 Aug '20

JobKeeper 2.1 - More Updates

By Charles Talbot

The government has today announced updates to both the existing and extension JobKeeper schemes.

This can be broken down in two parts:

The Existing JobKeeper Scheme (Updated):

This is set to finish 27 September 2020. Businesses and not for profits eligibility for this remains unchanged. However, from 3 August 2020 the relevant date of employment for employees will move from 1 March to 1 July 2020. This means for eligible employers their existing ineligible employees may become eligible from 3 August 2020 if they were:

• A full time, part time or fixed-term employee at 1 July 2020 (previously 1 March 2020); or
• A long-term casual employee (employed on a regular and systematic basis for at least 12 months) as at 1 July 2020 (previously 1 March 2020) and not a permanent employee of any other employer.

Therefore, it is vital eligible employers reassess their employee’s eligibility immediately. For employees who have now become eligible you must have them each complete the JobKeeper Employee Nomination Notice and identify them as eligible in your payroll software. By 16 August (and each subsequent eligible fortnight) you will need to pay the minimum of $1,500 gross (before tax) to all eligible employees claiming JobKeeper from fortnight 10 (3 August - 16 August).

The Updated Extension JobKeeper Scheme:

The Extension JobKeeper Scheme can be broken down into two parts:

Part 1: 28 September 2020 to 3 January 2021

To be eligible for the first JobKeeper Payment extension period businesses and not-for-profits 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).  

The JobKeeper Payment rates will be:

• $1,200 per fortnight for all eligible employees who were working in the business or not-for-profit 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.

Part 2: 4 January 2021 to 28 March 2021

To be eligible for the second JobKeeper Payment extension period businesses and not-for-profits 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). 

The JobKeeper Payment rates will be:

• $1,000 per fortnight for all eligible employees who were working in the business or not-for-profit 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
• $650 per fortnight for other eligible employees and business participants.

Actual GST Turnover Test

To be eligible for JobKeeper Payments under the above extensions, businesses and not-for-profits will need to demonstrate that they have experienced the following decline in turnover:

• 50 per cent for those with an aggregated turnover of more than $1 billion.
• 30 per cent for those with an aggregated turnover of $1 billion or less; or
• 15 per cent for Australian Charities and Not-for-profits Commission-registered charities (excluding schools and universities).

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

The Commissioner of Taxation will have discretion to set out 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, in line with the Commissioner’s existing discretion.

Learn more from Treasury on how this will impact you or your business. Alternatively, please do not hesitate to contact our office on 02 6921 5444.