JobKeeper 2.0 – Extension to 28 March 2021

Mateus Campos Felipe Percxdkzyh0 Unsplash

The government has now passed legislation for the extension of the JobKeeper Payment scheme from 28 September 2020 to 28 March 2021.

Extension from 28 September 2020

The existing JobKeeper scheme runs until 27 September 2020. The Government has announced that the JobKeeper scheme will be extended from 28 September 2020 until 28 March 2021.  There are two separate extension periods.

For each extension period, an additional actual fall in turnover test applies and the rate of the JobKeeper payment is different.  Alternative tests for determining turnover and payment rates may be available in some circumstances.

The extension periods are:

  • Extension 1: from 28 September 2020 to 3 January 2021
  • Extension 2: from 4 January 2021 to 28 March 2021

Business – What you need to do

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

  • work out if 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 JobKeeper Extension 1, ensure your eligible employees are paid at least
    1. $1,200 per fortnight for Tier 1 employees
    2. $750 per fortnight for Tier 2 employees
  • during JobKeeper Extension 2, ensure your eligible employees are paid at least
    1. $1,000 per fortnight for Tier 1 employees
    2. $650 per fortnight for Tier 2 employees.
  • If you are registered for GST and have outstanding BAS statements, you should lodge your BAS for the September 2019 and December 2019 quarters as soon as possible (or for equivalent months, if you report monthly).

Fall in turnover

  • To claim for fortnights in the JobKeeper Extension 1, you need to determine if you satisfy the actual fall in turnover test for the September 2020 quarter, you must calculate your GST turnover for the quarter of September 2019 and September 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 September quarter from the start of October onwards. You must provide it before you complete your November monthly declaration.

The rates of payment will change

The rate of the JobKeeper Payment will depend on the number of hours an eligible employee works, 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 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 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 rate of the JobKeeper Payment is also different for each extension period.

JobKeeper Extension 1

  • This extension period will run from 28 September 2020 to 3 January 2021.
  • You will need to demonstrate that your actual GST turnover has fallen in the September 2020 quarter (July, August, September) relative to a comparable period (generally the corresponding quarter in 2019).

The rates of the JobKeeper Payment in this extension period are:

  • Tier 1: $1,200 per fortnight (before tax)
  • Tier 2: $750 per fortnight (before tax).

JobKeeper Extension 2

  • This extension period will run from 4 January 2021 to 28 March 2021.
  • You will need to demonstrate that your actual GST turnover has fallen in the December 2020 quarter (October, November, December) relative to a comparable period (generally the corresponding quarter in 2019).
  • You can be eligible for JobKeeper Extension 2 even if you were not eligible for JobKeeper Extension 1.

The rates of the JobKeeper Payment in this extension period are:

  • Tier 1: $1,000 per fortnight (before tax)
  • Tier 2: $650 per fortnight (before tax).

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.

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

Share this great article

Subscribe to our newsletter

Get the latest udpate to our website

Share This

Select your desired option below to share a direct link to this page

Share on facebook
Share on twitter
Share on linkedin
Share on skype
Share on pinterest
Share on email