Learn what you need to know and what you need to do
On Monday 28 September 2020 we entered the JobKeeper extension period.
A new legislative instrument was issued surrounding the alternative tests and this will apply from 28 September 2020.
View the new alternative tests legislative instrument here.
View the accompanying explanatory statement here.
View the ATO web guidance here
What does this mean for you as an employer or eligible business participant?
Some things have changed and others have not.
Here is a summary of the key points:
- All entities currently on JobKeeper must again satisfy a new decline in turnover test, which requires a minimum decline of 30%. However, they don’t need to re-enrol.
- For JobKeeper Extension 1, the decline in turnover is calculated by comparing the September 2019 quarter with the September 2020 quarter.
- For JobKeeper Extension 2, the decline in turnover is calculated by comparing the December 2019 quarter with the December 2020 quarter.
- Monthly calculations no longer apply.
- Figures are taken from your BAS, for most entities.
- If you have not previously qualified for JobKeeper, you may be able to qualify for JobKeeper Extension 1, fortnights commencing 28 September 2020 and ending 3 January 2021. The business must enrol by 31 October 2020.
- If you qualify for JobKeeper for the first time, it is not backdated.
- There are seven alternative decline in turnover tests.
- JobKeeper payment decreases to two tiers based on average hours worked, for Extension 1 the payment tiers are $1,200 and $750. For Extension 2 the payment tiers are $1,000 and $650.
- For employees, the tier is determined, broadly, by whether the hours worked in February 2020 or June 2020 are 80 hours or more for one employer.
- A person employed after 30 June 2020 is not entitled to the JobKeeper subsidy.
- For users of STP enabled software, this should help you nominate for which tier the employee qualifies.
- For eligible business participants, the tier is determined by the number of hours worked in February 2020.
- An eligible business participant cannot be changed.
- For the JobKeeper fortnights starting 28 September 2020 and 12 October 2020, a business can pay its employees the JobKeeper subsidy by 31 October 2020 instead of having to make the payment within those JobKeeper fortnights.
- The business must notify an employee of the tier that applies to the employee within 7 days of the business informing the ATO of this.
What to do now?
If you have previously appointed us to manage JobKeeper for you, we will separately contact you to work out how this impacts your business.
If you have been managing JobKeeper yourselves, and would like our advice on how this impacts your business, please let us know ASAP.
To find out more please call us on 07 5649 7650.
