As we navigate through these unprecedented times we are doing our best to keep you well informed. We are here to assist you with any questions regarding the following information.
Updated law was passed 15 September 2020
JobKeeper 1 finishes up on 27 September 2020.
JobKeeper 2 is an extension of JobKeeper 1.
- Extension 1 (28 September 2020 to 3 January 2021)
- Extension 2 (4 January 2021 to 28 March 2021)
Eligibility (>30% drop in turnover as per actual BAS reporting – sale of assets included in turnover)
- Extension 1; GST turnover for September 2020 quarter compared to September 2019 quarter
- Extension 2; GST turnover for December 2020 quarter compared to December 2019 quarter
- Tier 1 = $1,200 per fortnight (extension 1), dropping to $1,000 per fortnight (extension 2)
- Tier 2 = $750 per fortnight (extension 1), dropping to $650 per fortnight (extension 2)
How to determine which payment tier applies to each employee? Take the month of February 2020 or the month of June 2020 and look at the total hours worked by that employee during the 28 day period.
- Tier 1 if its greater than 80 hours
- Tier 2 if its less than 80 hours
Next steps (if your eligible)
- Are you eligible? Check the September 2020 quarter (end of this month) and do the comparison. If the turnover hasn’t fallen by more than 30%; you’re not eligible. Check again after the December 2020 quarter. Your last claim for JobKeeper 1 will be in October 2020 for the fortnight ended 27 September 2020.
- If your business didn’t receive JobKeeper 1; enrol your business for JobKeeper 2 (do it yourself on the Business Portal; or we can do it for you on the Tax Agent’s Portal)
- Ensure your BAS statements are all lodged an up-to-date as the ATO will defer paying you if you’re late.
- If it’s an employee who didn’t receive JobKeeper 1 – you will need to nominate them.
- Decide which employees will continue with you, and to what degree you are going to top them up using the JobKeeper subsidy for the month of October 2020 (fortnights 14 and 15). Given that it takes time to assess eligibility, the ATO allows you to hold off on paying those employees the Jobkeeper subsidy until 31 October 2020.
If you believe you are eligible and require assistance in applying these new rules to your business, please email firstname.lastname@example.org or call our office. The above is a simplified high-level summary of the update. There are alternative tests, special rules if you don’t have employment records showing hours worked, special conditions for business participants/sole traders/religious practitioners etc.
This time round, the Australian Taxation Office has provided excellent documentation and guidance on this page.
Anthony Kim and Sheran Chalouhi