On 21st July 2020, the Australian Government announced that it is extending the JobKeeper Payment until 28th March 2021. The extension is targeting those businesses and not-for-profits which continue to be significantly impacted by COVID-19.
The first tranche (under the current rules) of the JobKeeper scheme will finish on 27th September 2020. The second tranche will start from the 28thSeptember 2020 and continue through to 28th March 2021.
What are the main changes?
Decline In Turnover Test
To be eligible to continue to receive JobKeeper you need to review your actual GST turnover:
28th September 2020 to 3rd January 2021 (Extension 1) – Actual GST turnover in the September 2020 quarter (July, August & September) fell by at least 30% (15% for ACNC-registered charities, 50% for large businesses) compared to the same period in 2019.
4th January 2021 to 28th March 2021 (Extension 2) – Actual GST turnover in the December 2020 quarter (October, November & December) fell by at least 30% (15% for ACNC-registered charities, 50% for large businesses) compared to the same period in 2019.
Note 1- An entity can potentially access JobKeeper on or after 28th September 2020 even if it was not eligible for JobKeeper prior to this date or it chose not to enrol in JobKeeper before this date. However, these entities will need to pass the original decline in turnover test in addition to the new decline in turnover test(s), although the original decline in turnover test is modified so that it can take into account the months of September, October, November and December 2020 as well as the December 2020 quarter.
Note 2 – Alternative tests applicable for JK 2.0 are still yet to be confirmed by the commissioner.
JobKeeper Payment Rates
From 28th September 2020, there will now be two payment rates:
28th September 2020 to 3rd January 2021 (Extension 1)
$1,200 (before tax) per fortnight per employee or business participant who worked > 20 hours per week.
$750 (before tax) per fortnight per employee or business participant working < 20 hours per week.
4th January 2021 to 28th March 2021 (Extension 2)
$1,000 (before tax) per fortnight per employee or business participant who worked > 20 hours per week.
$650 (before tax) per fortnight per employee or business participant working < 20 hours per week.
Under the current version of the JobKeeper Scheme, an employee must have been employed on 1st March 2020 however under JobKeeper 2.0 employees employed on the 1st July 2020 maynow be eligible.
What stays the same?
You do not need to re-enrol for the JobKeeper extension if you are already enrolled for JobKeeper before 28th September 2020.
Reassess Current Nominated Employees
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 28th September 2020.
This is how we can help you
The Gild Group (“Gild”) are ready to assist you with everything JobKeeper 2.0. Like JobKeeper 1.0, we are offering you the following two solutions:
Let Gild Manage The Registration Process
If you would like Gild to manage the process for you, please contact your Gild Client Manager by 30th September 2020 so that we have plenty of time to review your eligibility.
Gild is offering a reduced hourly rate from our tax & advisory team to help navigate the set up and eligibility process. Our fee will be $250 + GST per hour to determine eligibility and register you.
Similar to JobKeeper 1.0, there are monthly reporting requirements back to the tax office to report monthly turnover for the reporting month & projected turnover for the following month. These declarations are required 14 days post the reporting month.
Ongoing fees (monthly declarations) will be charged at your standard bookkeeping rates. Please confirm with your Client Manager if you are unsure of your rate.
Complete My Own Registration
Please confirm with your Gild Client Manager that you will manage the registration process yourself, then keep an eye on the ATO website for details on the step-by-step process.