There are two separate extension periods. For each extension period, an additional actual decline in turnover test applies and the rate of the JobKeeper payment is different.
You will need to demonstrate that your actual GST turnover (as reported on your Business Activity Statement) for the September 2020 quarter has decreased by the relevant amount when compared to the corresponding September 2019 quarter, and then similarly for the December 2020 quarter when compared with the December 2019 quarter.
The decline in turnover test remains the same as the existing rules, being:
- Entities with turnover greater than $1 billion – 50%.
- Entities with turnover less than $1 billion – 30%.
- ACNC registered charities (excluding schools and universities) – 15%.
Sole traders and some other entities (such as partnerships, trusts or companies) may be entitled to the JobKeeper Payment scheme under the business participation entitlement. A limit applies of one JobKeeper payment per fortnight for one eligible business participant. Sole traders, one partner in a partnership, one beneficiary of a trust, and one director or shareholder of a company may be regarded as an eligible business participant.
The existing employee eligibility requirements have not changed except for the eligibility date of 1 July 2020 (previously 1 March 2020), and are as follows:
- Currently employed and were employed by the employer at 1 July 2020;
- full time, part time, or long term casuals;
- At least 18 years of age or aged 16 to 17 years and independent or not undertaking full time study;
- An Australian resident; and not in receipt of a JobKeeper payment from another employer.
Payments and Minimum Wage Conditions
The payments that will be made and the minimum amounts to be paid are as follows:
From 28 September 2020 to 3 January 2021 payments will be:
- $1,200 per fortnight for eligible employees working more than 20 hours per week, and
- $750 per fortnight for other eligible employees and business participants.
From 4 January 2021 to 28 March 2021 payments will be:
- $1,000 per fortnight for eligible employees working more than 20 hours per week, and
- $650 per fortnight for other eligible employees and business participants.
What has not changed
You don’t need to re-enrol for the JobKeeper extension if you are already enrolled for JobKeeper for fortnights before 28 September 2020.
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 2020. 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
Key Deadlines and Considerations
- Don’t forget to still do your monthly declaration for September by 14 October 2020.
- From 28 September 2020 employers need to demonstrate that their actual GST turnover has fallen against a comparable period.
- From 28 September 2020, tier 1 and tier 2 JobKeeper rates are to be applied and are generally based on average hours worked by employees.
- By 31 October 2020 – employers must meet the minimum payment conditions for the fortnights starting 28 September and 12 October 2020.
- Employers do not need to re-enrol to claim first extension if they are already enrolled but just need to notify ATO accordingly of tiers.
- Monthly declarations continue to be required but need to include tiers for each employees.
- If you have outstanding BAS statements for comparison periods [e.g. September and December 2019], you should lodge your BAS’s as soon as possible to prevent delays in processing.
- 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 can still qualify for March 2021 quarter even if you don’t qualify for the other periods.
- Choose relevant payment tiers and notify employees within 7 days of advising the ATO of the relevant payment rate.