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JobKeeper 2.0

JobKeeper 2.0

The Government has announced that JobKeeper payments will continue for 6 months beyond the legislated finish date of 27 September 2020, subject to revamped eligibility rules. There will be 2 tiers of payment rates as part of "JobKeeper 2.0"

There will also be a requirement for businesses and not-for-profits to demonstrate an actual decline in turnover under the existing turnover tests.

But importantly, the existing arrangements for those receiving JobKeeper payments continue until 27 September.

The JobKeeper Payment will continue to be made by the ATO to employers in arrears. Employers will continue to be required to make payments to employees equal to, or greater than, the amount of the JobKeeper Payment (before tax), based on the payment rate that applies to each employee.

The changes revolve around

  1. The tiered payment rates and
  2. New Turnover tests to determine eligibility.

 

1.       JobKeeper payment rates

 
Period Full rate per fortnight Less than 20hrs worked per fortnight rate
28 September 2020 to 3 January 2021 $1,200 $750
4 January 2021 to 28 March 2021 $1,000 $650

The JobKeeper payment rate ($1,500 per fortnight until 27 September) is to be reduced and paid at 2 rates:

Phase 1: 28 September 2020 to 3 January 2021

  • Tier 1: $1,200 per fortnight - From 28 September 2020 to 3 January 2021, the payment rate will be reduced from $1,500 to $1,200 per fortnight for all eligible employees who, in the 4 weeks before 1 March 2020, were working in the business for 20 hours or more a week on average and for eligible business participants who were actively engaged in the business for more than 20 hours per week on average in the month of February 2020; and
  • Tier 2: $750 per fortnight - for employees who were working in the business for less than 20 hours a week on average and business participants who were actively engaged in the business less than 20 hours per week in the same period.
     

Phase 2: 4 January 2021 to 28 March 2021

  • Tier 1: $1,000 per fortnight - From 4 January 2021 to 28 March 2021, the payment rate will be $1,000 per fortnight for all eligible employees who in the 4 weeks before 1 March 2020, were working for 20 hours or more a week on average and for eligible business participants who were actively engaged in the business for more than 20 hours per week on average in the month of February 2020; and
  • Tier 2: $650 per fortnight - for employees who were working for less than 20 hours a week on average and business participants who were actively engaged in the business for less than 20 hours per week in the same period.      


2. Change in Turnover Test

+ In order to be eligible for the first JobKeeper Payment extension period of 28 September 2020 to 3 January 2021, businesses and not-for-profits will need to demonstrate that their actual GST turnover has significantly fallen in the both the June quarter 2020 (April, May and June) and the September quarter 2020 (July, August, September) relative to comparable periods (generally the corresponding quarters in 2019).

+ For the second JobKeeper Payment extension period of 4 January to 28 March 2021, businesses and not-for-profits will again need to demonstrate that their actual GST turnover has significantly fallen in each of the June, September and December 2020 quarters relative to comparable periods (generally the corresponding quarters in 2019).

Businesses and not-for-profits will generally be able to assess eligibility based on details reported in the BAS. Alternative arrangements will be put in place for businesses and not-for-profits that are not required to lodge a BAS.

 

SELF-EMPLOYED

Self-employed  sole traders will also have these changed payments in line with the above tiered payment schedule and will have to determine their eligibility based on the same criteria as Employers that are mentioned above.

We are quite certain that more details will be put in place for non- GST registered sole traders that may not have easy access to quarterly figures. As the announcement is quite recent, we have not heard as yet, but will pass on details as they come to hand.

The announcement also contains reference to the application of the alternate turnover tests as they applied to the original proposal but again details are at this stage sketchy and details will also be forwarded as they come to hand.

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