The Government has announced an extension of the JobKeeper scheme to the 28th of March 2021. There will be a new test for eligibility and payment rates will reduce. The basic rules of the JobKeeper scheme are unchanged (except for moving the reference date for eligible employees to July) and there is no impact on eligibility prior to the 27th September 2020. If you were already receiving JobKeeper, your eligibility won’t be retested until the 28th of September.

Am I eligible for JobKeeper extension?

To be eligible for JobKeeper after the 27th of September, there will be a fresh test of whether your turnover has dropped. The amount of drop required is unchanged to what you used previously and in most cases is a 30% drop.

From the 28/9/2020 there are 2 JobKeeper extension periods being:

  • Extension period 1. From 28/9/2020 to 3/1/2021

  • Extension period 2. From 4/1/2021 to 28/3/2021

JobKeeper Extension 1

To be eligible for JobKeeper during extension period 1 you need to be able to show that your actual GST turnover for the September 2020 quarter has decreased by required percentage 30% or more with the actual GST turnover for the September 2019 quarter. Alternative tests may also be applicable however there is a requirement of a drop of at least 30% between relevant periods per these tests.

JobKeeper Extension 2

Similar to Jobkeeper extension 1 however replace September with December.

Please note that failing the turnover test for one extension period does not preclude a business from qualifying for the other extension period.

What do I do next ?

If receiving JobKeeper and eligible for JobKeeper extension 1

Step 1. Work out what the Tier rate (Tier 1 or Tier 2, refer below for the difference) that applies to each of your eligible employees and/or eligible business participant by referring to the number of hours worked in the relevant reference period.

Step 2. Notify the ATO of the tier rate applicable to your eligible employee/s and/or eligible business participant. We are waiting for further guidance from the ATO on how this will be reported, and the due date advised is the 28 October, 2020 for JobKeeper extension 1

Step 3. Notify the eligible employee/s and/or eligible business participant within 7 days of notifying the ATO of the tier rate applicable to them

Step 4. Ensure eligible employees entitled to JobKeeper are paid at least (fortnights between 28/9/2020 – 3/1/2021)

  • $1,200 per JobKeeper fortnight* for tier 1 employees

  • $750 per JobKeeper fortnight* for tier 2 employees

Step 5. Lodge the monthly declaration form with the ATO within 14 days of the end of the month

*For the JobKeeper fortnights payment in October 2020 you have until the 31/10/2020 to make the payments

If eligible for JobKeeper extension 2

Same as Steps 1 to 3 “Ïf eligible for JobKeeper extension 2”

Step 4. Ensure eligible employees are paid at least (fortnights between 4/1/2021 – 28/3/2021)

  • $1,000 per JobKeeper fortnight for tier 1 employees

  • $650 per JobKeeper fortnight for tier 2 employees

Step 5. Lodge the monthly declaration form with the ATO within 14 days of the end of the month

If previously not eligible for Jobkeeper, can I be eligible for Jobkeeper during extension period 1 and extension period 2 ?

Yes, provided that you meet the conditions in either of the extension periods

How to determine if employee/s and/or business participant are Tier Rate 1 and Tier Rate 2?

Tier Rate 1

Qualifying employees/business participants who work 80 hours or more during the relevant reference period

Tier Rate 2

Qualifying employees/business participants who work less than 80 hours during the relevant reference period

What is the relevant reference period ?

  • Determine the date of the last pay periods that fell before (a) 1 March 2020 or (b) 1 July 2020.

  • Work out the number of hours worked by each employee in the 28 days up to and including the dates worked out above.

  • For Eligible Business Participants (usually one business owner who is not an employee of the business), the test cycle is the month of February 2020.

  • Alternative reference periods may be used in certain circumstances (i.e. where an employee was not employed during all or part of a reference period).

Further information on the extended JobKeeper program can be found by following the links below.

https://www.ato.gov.au/misc/downloads/pdf/qc62125.pdf

https://treasury.gov.au/sites/default/files/2020‐07/Fact_sheet‐JobKeeper_Payment_extension.pdf

If you would like our assistance with meeting your JobKeeper qualification and reporting obligations, please contact our office.