The JobKeeper payment has been extended by the Australian Federal Government with the following changes to take effect from 28 September 2020:
- The key date for assessing employee eligibility is now 1 July 2020, rather than 1 March 2020
- There is now a Tier 1 and Tier 2 JobKeeper rate
- New turnover test – you no longer use your projected GST turnover for the relevant quarter being tested, you use your current GST turnover
Employers and businesses will need to nominate the rate they are claiming for the eligible employees and/or eligible business participants.
Tier 1 rate applies for:
- 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
- Eligible business participants who were actively engaged in the business for 80 hours or more in February 2020
Tier 2 rate applies for:
- Other eligible employees and business participants
Extension 1: 28 September – 3 January 2021
You will need to demonstrate that your actual GST turnover has fallen by 30% in the September 2020 quarter (July, August, September) relative to a comparable period (generally the corresponding quarter in 2019).
Tier 1 Rate: $1,200 per fortnight
Tier 2 Rate: $750 per fortnight
Extension 2: 4 January 2021 – 28 March 2021
You will need to demonstrate that your actual GST turnover has fallen by 30% in the December 2020 quarter (October, November, December) relative to a comparable period (generally the corresponding quarter in 2019).
Tier 1 Rate: $1,000 per fortnight
Tier 2 Rate: $650 per fortnight
What you need to do
From 28 September 2020, you 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
- Notify the ATO and your eligible employees and/or eligible business participants what payment rate applies to them
- Ensure your eligible employees and/or eligible business participants are paid the correct rate for the relevant JobKeeper fortnights
If you are registered for GST and have outstanding BAS’s, 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). Un-lodged BAS’s may hold up your application for JobKeeper Payments under the JobKeeper extension.
Click here for further information on the ATO’s website.