Tag: JobKeeper Scheme

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 

The Extension and Modification of JobKeeper

Today, the Prime Minister announced the extension and watering down of the wage subsidy, JobKeeper  

Points to note: 

  • Existing JobKeeper continues up until 27 September 2020 
  • From the next day, a new, modified JobKeeper scheme applies until 28 March 2021 
  • Under the new scheme, employers must reassess their eligibility with reference to actual turnover in the June and September quarters (2020) compared to the same period in 2019. That is: 

 

    • from 28 September 2020, businesses and not-for-profits will be required to reassess their eligibility with reference to their actual GST turnover in the June and September quarters 2020.  They will need to demonstrate that they have met the relevant decline in turnover test in both of those quarters to be eligible for the JobKeeper Payment from 28 September 2020 to 3 January 2021. 
    • from 4 January 2021, businesses and not-for-profits will need to further reassess their turnover to be eligible for the JobKeeper Payment. They will need to demonstrate that they have met the relevant decline in turnover test with reference to their actual GST turnover in each of the June, September and December quarters 2020 to remain eligible for the JobKeeper Payment from 4 January 2021 to 28 March 2021 

 

  • Monthly lodgers will use the aggregate turnover for the three-monthly Activity Statements over these quarters, and compare them to the above periods in 2019 
  • The existing decline in turnover rates must be met (i.e. 30% for businesses with a turnover of $1 billion or less, or 15% for Australian Charities and Not for profits Commission-registered charities (excluding schools and universities) 
  • Reduced payment rates will also apply for all eligible employees and business participants.as follows: 

 

  • From 28 September 2020 to 3 January 2021, the JobKeeper Payment rates will be: 

 

  • $1,200 per fortnight for all eligible employees who, in the four weeks of pay periods before 1 March 2020, were working in the business or not-for-profit for 20 hours or more a week on average, and for eligible business participants who were actively engaged in the business for 20 hours or more per week on average in the month of February 2020; and 

 

  • $750 per fortnight for other eligible employees and business participants. 

 

  • From 4 January 2021 to 28 March 2021, the JobKeeper Payment rates will be: 

 

  • $1,000 per fortnight for all eligible employees who, in the four weeks of pay periods before 1 March 2020, were working in the business or not-for-profit for 20 hours or more a week on average and for business participants who were actively engaged in the business for 20 hours or more per week on average in the month of February 2020; and 

 

  • $650 per fortnight for other eligible employees and business participants.