JOBKEEPER 2.0 (28 September 2020 to 3 January 2021) Bullet Point Guide

Here is a quick snapshot of the important points of JobKeeper 2.0 as we count down the days until its commencement next week:    

  • Entities must re-assess their eligibility for JobKeeper 2.0 from 28 September 
  • Entities already enrolled in JobKeeper 1.0 do not need to re-enrol for JobKeeper 2.0 
  • Employees who received JobKeeper 1.0 do not need to fill out fresh nomination notices for JK 2.0 
  • The decline in turnover is now “actual” GST turnover for the September quarter” v. “actual GST turnover the 2019 September quarter” (projected turnover now plays no role) 
  • The decline in turnover percentages remain unchanged from JobKeeper 1.0, at 15% (ACNC registered charities other than universities and schools), 30% ($1b or less) and 50% (more then $1b) 
  • Businesses are generally expected to assess eligibility based on details reported in their BAS. Alternative arrangements will be announced for entities not lodging a BAS 
  • As with JobKeeper 1.0, the Commissioner will have discretion to set out alternative tests where it is not appropriate to compare actual turnover in a quarter in 2020 with actual turnover in a quarter in 2019 
  • The wage condition, based on the tier into which the eligible employee or business participant falls (see below), continues to apply 
  • The “one-in”, “all-in” principle continues to apply 
  • For the first two JK 2.0 fortnights, the ATO has extended until 31 October 2020 the time an entity has to pay employees in order to meet the wage condition 
  • JobKeeper 2.0 will be a two-tiered payment arrangement based on average hours worked, on an employee-by-employee basis, in the four weeks of pay periods before either 1 March 2020 or 1 July 2020. 
  • Tier 1 and Tier 2 level employees are identified as part of the JobKeeper extension process 

Tier 1 – $1,200 per fortnight (before tax). This rate 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. 

Tier 2 – $750 per fortnight (before tax). This rate applies to any other eligible employee or business owner. 

  • Payments for eligible business participants and religious practitioners will be based on the same two-tiered payment basis 
  • An extra reporting requirement will apply. That is, businesses will be required to nominate which payment rate they are claiming for each of their eligible employees (or business participants) 
  • Employers must notify eligible employees of the payment to which they are eligible, within seven days of notifying the ATO 
  • The ATO has set out alternative tests where an employee or business participant’s hours were not usual during the February and/or June 2020 reference periods. For example, this will include where the employee was on leave, volunteering during the bushfires, or not employed for all or part of February or June 2020. 
  • From 4 January 2021 the tier 1 rate reduces to $1,000 and the tier 2 rate reduces to $650