News

JobKeeper 2.0

Posted on August 7th, 2020 by WLF

The government has announced changes to the JobKeeper payment that will extend the scheme until 28 March 2021.

These changes are summarised for you below along with some other important information.

 

Extensions

The extension to the scheme will be in two tranches:

  • October to December
  • January to March

What will change

  • Turnover tests
  • The amount of the payment
  • Payments to part-time workers
  •  Employees employed on or before 1 July 2020 will now be eligible*

What won’t change

  • Other employee eligibility criteria
  • Notification requirements
  • Business participant eligibility
  • The rate of turnover decline
  • Timing of payments to employees (by last day in fortnight)
  • Timing of payments by ATO (monthly in arrears)

Still to be clarified

  • Alternative turnover tests where 2019 is not an appropriate comparison period

Partial payment for part-time workers

  • A lower rate of payment will apply to part-time workers
  • A lower rate will apply to employees that worked (on average) less than 20hrs per week during the month of February 2020
  • There will be alternative methods for determining the average hours worked where extenuating circumstances apply. E.g. employee was on leave, or the business was affected by the bushfires during February 2020
  • You will need to nominate which workers are eligible for which rate of the payment

Employee eligibility

  • From 3 August, employees employed on 1 July 2020 or earlier will also be eligible for the payments (previously 1 March 2020).
  • However, if your new employee previously received JobKeeper from another employer they may not be eligible under the current legislation. Please contact us if you have questions

Decline in turnover

For the December 2020 and March 2021 quarters you will need to show a decline in turnover for the immediately preceding quarter compared with the same period in 2019.

This will allow new entrants to the scheme, based on their most recent turnover. 

JobKeeper Extension Period

Demonstrate decline in turnover for

28 September 2020 to 3 January 2021

September quarter 2020 (Jul, Aug, Sep) compared with the September quarter 2019

4 January 2021 to 28 March 2021

December quarter 2020 (Oct, Nov, Dec) compared with the December quarter 2019

The decline must be based on actual turnover (not projected). Businesses will need to finalise their accounts quickly to determine their eligibility for the extended scheme because employees will still need to be paid before the end of each JobKeeper fortnight.

However, the ATO will have discretion to extend the timeframe a business has to pay employees, so we are expecting they will provide a grace period to allow businesses enough time to confirm their eligibility.

1st Extension (October to December 2020)

  •  This round runs for fortnights beginning on 28 September and ending on 3 January
  • Full rate: $1,200
  • Partial rate: $750
  • Decline in turnover test:  September quarter

o   Businesses must demonstrate a drop in actual turnover for the September quarter (July, August & September 2020) to qualify for the next round of payments

o   The comparison period for demonstrating the decline will be the same period in the 2019 year

o   The ATO will issue alternative tests where the 2019 year is not an appropriate comparison, similar to the alternative tests available now

o   The rate of decline remains the same (30% for most businesses and 15% for not-for-profits)

2nd Extension (January to March 2021)

  • This round runs for fortnights beginning on 4 January and ending on 28 March
  • Full rate: $1,000
  • Partial rate: $650
  • Decline in turnover test: December quarter

o   Businesses must demonstrate a drop in actual turnover for the December quarter (October, November & December 2020) to qualify for the second round of payments

o   The comparison period for demonstrating the decline will be the same period in the 2019 year

o   The ATO will issue alternative tests where the 2019 year is not an appropriate comparison, similar to the alternative tests available now

o   The rate of decline remains the same (30% for most businesses and 15% for not-for-profits)

 

JobKeeper fortnight

Period

Changes

9

20 July – 2 August

No changes to current rules

10

3 August – 16 August

 

No changes to current turnover rules

 

Available for employees that were employed on or before      1 July 2020*

11

17 August – 30 August

12

31 August – 13 September

13

14 September – 27 September

14

28 September – 11 October

Show decline in turnover for September quarter

 

 

Full payment: $1,200

Partial payment: $750

 

Available for employees that were employed on or before      1 July 2020*

15

12 October – 25 October

16

26 October – 8 November

17

9 November – 22 November

18

23 November – 6 December

19

7 December – 20 December

20

21 December – 3 January

21

4 January – 17 January

Show decline in turnover for December quarter

 

Full payment: $1,000

\Partial payment: $650

 

Available for employees that were employed on or before      1 July 2020*

22

18 January – 31 January

23

1 February – 14 February

24

15 February – 28 February

25

1 March  – 14 March

26

15 March – 28 March

* If your employee previously received JobKeeper from another employer they may not be eligible under the current legislation. Please contact us if you have questions.

 

More information is available here:
WLF Covid 19 news

Treasury factsheet: Extension of the JobKeeper Payment

ATO information 

Please contact your WLF Advisor if you have any additional questions

Posted in COVID-19, News
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JobKeeper 2.0

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