JobKeeper 2.0 – Extension to 28 March 2021

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The Australian Govt has now passed legislation for the extension of the Job Keeper Payment scheme from the 28 Sep 2020 – 28 Mar 2021.

Extension from the 28 Sep 2020

The existing Job Keeper scheme runs up until 27 Sep 2020. The Govt has announced the Job Keeper scheme is to be extended from the 28 Sep 2020 until 28 Mar 2021.  There will be two separate extension periods.

For each extension period, an additional actual fall in turnover test applies and the Job Keeper payment rate is different.  Alternative tests to determine payment rates and turnover may be available in some circumstances.

The extension periods will be:

  • Extension Period 1: is from the 28 Sep 2020 – 3 Jan 2021
  • Extension 2: is from 4 Jan 2021 – 28 Mar 2021

Business – What you need to do

From the 28 Sep 2020, you must do all the following:

  • work out whether the Tier 1 or Tier 2 rate (details below) applies to each of your eligible employees and/or eligible business participants
  • notify the ATO and your eligible employees and/or eligible business participants what payment rate applies to them; and
  • during Job Keeper Extension Period 1, ensure your eligible employees are paid at least
    1. $1,200 every 2 weeks for Tier 1 employees
    2. $750 every 2 weeks for Tier 2 employees
  • during Job Keeper Extension 2, ensure your eligible employees are paid at least
    1. $1,000 every 2 weeks for Tier 1 employees
    2. $650 every 2 weeks for Tier 2 employees.
  • If you are registered for GST and have outstanding BAS statements, you should lodge your BAS for the Sep 2019 and Dec 2019 quarters as soon as possible (or for equivalent months, if you report monthly).

Fall in turnover

  • To claim for fortnights in the Job Keeper Extension Period 1, you need to determine if you satisfy the actual fall in turnover test for the Sep 2020 quarter, you must calculate your GST turnover for the quarter of Sep 2019 and Sep 2020.
  • 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.
  • You can provide additional turnover information to demonstrate that you satisfy the actual fall in turnover test for the Sep quarter from the start of Oct onwards. You must provide it before you complete your Nov monthly declaration.

The rates of payment will change

The Job Keeper Payment rate will depend on the number of hours worked by an eligible employee, or an eligible business participant is actively engaged in the business. It will be split into two rates.

Tier 1 rate: Tier 2 rate:
This rate is expected to apply to:

  • eligible employees who worked for 80+ hours in the 4 weeks of pay periods before either 1 Mar 2020 or 1 Jul 2020, and
  • eligible business participants who were actively engaged in the business for 80+ hours in Feb and provide a declaration to that effect.

 

This rate is expected to apply to:

  • any other eligible employees and eligible business participants.

 

 

Employers and businesses will need to nominate the rate they are claiming for each eligible employee and/or eligible business participant.  The Job Keeper payment rate is also different for each extension period.

Job Keeper Extension Period 1

  • This extension period is from the 28 Sep 2020 – 3 Jan 2021.
  • The business needs to demonstrate that their actual GST turnover has fallen in the Sep 2020 quarter (Jul, Aug, Sep) relative to a comparable period (generally the corresponding quarter in 2019).

The rates of the Job Keeper Payment in this extension period are:

  • Tier 1: will be $1200 every 2 weeks (before tax)
  • Tier 2: will be $750 every 2 weeks (before tax).

Job Keeper Extension 2

  • This extension period is from 4 Jan 2021 – 28 Mar 2021.
  • The business needs to demonstrate that their actual GST turnover has fallen in the Dec 2020 quarter (Oct, Nov, Dec) relative to a comparable period (generally the corresponding quarter in 2019).
  • You can be eligible for Job Keeper Extension 2 even if you were not eligible for Job Keeper Extension Period 1.

The rates of the Job Keeper Payment in this extension period are:

  • Tier 1: will be $1000 every 2 weeks (before tax)
  • Tier 2: will be $650 every 2 weeks (before tax).

What does not change

To claim for fortnights in the Job Keeper Extension Period 1 or 2:

  • You do not need to re-enrol for the Job Keeper extension if you are already enrolled for Job Keeper for fortnights before 28 Sep.
  • You do not 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 Sep.
  • You do not need to meet any further requirements if you are claiming for an eligible business participant, other than those that applied from the start of Job Keeper relating to:
    • holding an ABN, and
    • declaring assessable income and supplies.

At Solve Accountants we specialise in helping clients with complex and challenging issues.  If you have questions or need assistance: Contact us now

#economicstimulus #covid19 #coronavirus #JobKeeper #JobKeeperScheme #tax #JobKeeper2.0

Source: Australian Taxation Office

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