JobKeeper 2.0 is imminent, and the rules are being written on the fly – please find below a summary of what we know so far in relation to the first extension period, and for more detail please read the NTAA’s fact sheet. We have also developed a JobKeeper 2.0 Checklist that you may like to use when assessing individual employee eligibility to ensure that you use the correct pay rate.
For those currently receiving JobKeeper and those new to JobKeeper, in order to receive it after 28 September (extension period 1) you will need to show an ACTUAL 30% GST decline in turnover for the quarter ending 30 September 2020 (via your BAS), relative to the September 2019 quarter.
There are also changes to the employee eligibility test:
- Reference period for employee eligibility covers the 28 days prior to either:
- 1 March 2020 (being 2/2/2020 – 29/2/2020) OR
- 1 July 2020 (being 3/6/2020 – 30/6/2020)
- Hours of work (during the reference period) is determined as follows:
- Where total hours worked were at least 80 hours in the reference period, the employer receives $1,200 per fortnight
- Where total hours worked were less than 80 hours in the reference period, the employer receives $750 per fortnight
The government has already announced various modifications to the test (for example where an employee begins employment part way through the reference period), so please contact us for assistance in determining your eligibility if your business doesn’t fall nicely into one of the above boxes.
Please note: eligibility for each of the new extension periods (28/9/2020 to 3/1/2021 and 4/1/2021 to 28/3/2021) needs to be reviewed and eligibility determined separately, so you will need to test for extension period 1 and extension period 2 (looking at actual GST for the December quarter) independently. If you fail the test for extension period 1 and JobKeeper ceases you can re-test for extension period 2 when the time comes (and potentially re-commence receiving JobKeeper if the eligibility criteria is met).
Finally, new notification forms are required to be submitted to the ATO when entering JobKeeper 2.0 (and are as yet unavailable) and employers will be required to notify all employees of their new eligible payment rate within 7 days of enrolling with the ATO.
As always, please contact your friendly Halletts team member for assistance in navigating these complicated waters!