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)
Importantly when selecting the above reference period an employer must use the period that will give the employee the highest rate of JobKeeper.
  • 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!

canoeist on white water rapids

Buried in the fine print of the JobKeeper 2.0 announcements (and thanks to the eagle-eye of one of our fabulous clients, thanks CM) we note that the test date for employee eligibility, even for the current JobKeeper 1.0 scheme, has now changed from employees who were on the books at 1 March 2020 to those who were on the books at 1 July 2020 (while still including anyone who qualified under the old rules).

This means (for example) new permanent full-time or part-time employees taken on between 1 March and 1 July may now also qualify for JobKeeper, or if your long-term casual turned 18 or clicked over 12 months of employment during this time, they may also now qualify.

The new rules apply to JobKeeper payment fortnights commencing 3 August, and new employees must be paid and registered by no later than 31 August (extended from 21 August).

The rules have changed (and will continue to evolve), so please ensure you talk to your friendly Halletts team member so you can be 100% certain you are JobKeeper compliant. We are here to help!

alarm clock ringing

The federal government has proposed an extension to the JobKeeper arrangements for eligible employers for the benefit of employees and eligible business participants until March 2021 (labelled ‘JobKeeper 2.0’ by Scotty from marketing). But the bar is being raised for employers to qualify and the amounts to be paid are being reduced. At this stage there are no changes or additional requirements to qualify for JobKeeper 1.0 which will still run until late September 2020.

In short, there will be linkages to hours previously worked and businesses will need to prove their eligibility again in order to keep receiving it. It remains open to new recipients who meet the eligibility requirements outlined below.

All businesses and non-profits wishing to continue receiving JobKeeper past 28 September 2020 will need to reassess their eligibility in relation to their actual GST turnover in the June and September 2020 quarters relative to comparable periods, and will need to demonstrate a decline in turnover for BOTH quarters in order to be eligible for the first 3 month extension to 3 January 2021. Even more importantly, this first re-assessment needs to be completed by the end of September and based on actual GST supplies, so your accounting systems will need to be kept right up to date!

To continue receiving JobKeeper after 3 January and until 28 March 2021, businesses will then need to meet the eligibility criteria again for all three of the June, September and December 2020 quarters.

The qualifying pay periods still go back to the 4 weeks before 1 March 2020, but now those who worked 20 hours per week or more (on average) during that time will receive $1,200 per fortnight from 28 September 2020 – 3 January 2021, and all eligible ‘others’ will receive $750 per fortnight for the same 3 months.

From 4 January – 28 March 2021 those who worked 20 hours per week or more (on average) will receive $1,000 per fortnight, and eligible others will receive $650 per fortnight.

You may find this infographic a useful summary of the new situation.

As always, we stand ready and at a socially appropriate distance 😊 to assist you to assess and gain everything you are legitimately entitled to and to help you come out the other side – please contact your friendly Halletts team member!

back of man's head receiving a haircut