With the JobKeeper extension commencing in two weeks, we provide the latest publically available information –
Extension from 28 September 2020
The original JobKeeper scheme finishes on 27 September 2020.
In good news for employers, the Government then announced that the scheme will be extended from 28 September 2020 until 28 March 2021.
There are two separate extension periods. For each extension period, an additional actual fall in turnover test applies and the rate of the JobKeeper payment is different.
Alternative tests for determining turnover and payment rates may be available in some circumstances but at the time of writing are yet to be published. We will notify you of these as they come to hand.
Extension 1
This extension period runs from 28 September 2020 to 3 January 2021.
You will need to demonstrate that your actual GST turnover has fallen by the following percentages= in the September 2020 quarter (July, August, September) relative to a comparable period (generally the corresponding quarter in 2019)
- 30% fall in turnover (for an aggregated turnover of $1 billion or less)
- 50% fall in turnover (for an aggregated turnover of more than $1 billion), or
- 15% fall in turnover (for ACNC-registered charities other than universities and schools).
The payment rates of the JobKeeper Payment in this extension period are:
- Tier 1: $1,200 per fortnight (before tax)
- Tier 2: $750 per fortnight (before tax).
Rates of Payment
The rate of the JobKeeper Payment will depend on the number of hours an eligible employee works or on the other hand the number of hours an eligible business participant is actively engaged in the business.
It will be split into two rates as follows:
TIER 1 RATE |
TIER 2 RATE |
This applies to - eligible employees who worked for 80 hours or more in the four weeks of pay periods before either 1 March 2020 or 1 July 2020, and
- eligible business participants who were actively engaged in the business for 80 hours or more in February and provide a declaration to that effect.
| This rate is expected to apply to any other eligible employees and eligible business participants. |
Employers and businesses will need to nominate the rate they are claiming for each eligible employee and/or eligible business participant.
Extension 2
This extension period will run from 4 January 2021 to 28 March 2021.
You will need to demonstrate that your actual GST turnover has fallen in the December 2020 quarter (October, November, December) relative to a comparable period (generally the corresponding quarter in 2019).
You can be eligible for JobKeeper Extension 2 even if you were not eligible for JobKeeper Extension 1.
The rates of the JobKeeper Payment in this extension period are:
- Tier 1: $1,000 per fortnight (before tax)
- Tier 2: $650 per fortnight (before tax).
What Employers Need to do
From 28 September 2020, employers must do all of the following:
- work out if the Tier 1 or Tier 2 rate applies to each of your eligible employees and/or eligible business participants and/or eligible religious practitioners
- notify the Commissioner and your eligible employees and/or eligible business participants and/or eligible religious practitioners what payment rate applies to them; and
- during JobKeeper Extension 1, ensure your eligible employees are paid at least
- $1,200 per fortnight for Tier 1 employees
- $750 per fortnight for Tier 2 employees
- during JobKeeper Extension 2, ensure your eligible employees are paid at least
- $1,000 per fortnight for Tier 1 employees
- $650 per fortnight for Tier 2 employees.
For your eligible religious practitioners, you must provide certain benefits to them in the fortnight.
If you are registered for GST and have outstanding BAS statements, you should lodge your BAS for the September 2019 and December 2019 quarters as soon as possible (or for equivalent months, if you report monthly).
Fall In Turnover
To claim for fortnights in the JobKeeper Extension 1, you need to determine if you satisfy the actual fall in turnover test for the September 2020 quarter, you must calculate your GST turnover for the quarter of September 2019 and September 2020.
For many businesses registered for GST, this calculation will match the ‘total sales’ reported at G1 on your BAS minus GST payable (1A), where applicable.
You can provide additional turnover information to demonstrate that you satisfy the actual fall in turnover test for the September quarter from the start of October onwards. You must provide it before you complete your November monthly declaration.
What Doesn’t Change?
To claim for fortnights in the JobKeeper Extension 1 or 2:
- You don’t need to re-enrol for the JobKeeper extension if you are already enrolled for JobKeeper for fortnights before 28 September.
- 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 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.
