JobKeeper 1.1

|by Jun Yang|Taxation and Compliance,Business Advisory

The government has announced on 14 August 2020 for the extension on the JobKeeper payments till 31 March 2021.

The announcement has also extended the eligible employees if they are missed due to the original test of 1 March 2020. The new change will allow the following employees to be eligible as of 1 July 2020 to claim the JobKeeper payment from 3 August 2020:

  • Individuals (other than casuals) employed after 1 March but before 1 July 2020 who meet the age and residency requirements;
  • Casuals who did not meet the definition of a long term casual employee by 1 March 2020 but have become long term casual employees by 1 July 2020; and
  • Employees who did not qualify on 1 March 2020 due to their age or visa status but have become 16 or 17 and meet the independence and study conditions, turned 18, or obtained the necessary visa by 1 July 2020. As employer, you are required to submit employee nomination notice as well as meet the wage condition by 31 August to be eligible for the claim.

JobKeeper 2.0

From 28 September 2020, there will be a slightly different turnover declined test for employer to replace the current GST turnover decline test for the extended period. Further, the flat rate payment will be replaced by the two-tier rate and progressively reduced rate to prepare the exit of the program as of 28 March 2021.

Much simplified GST turnover test

Currently you can use forecast/projected GST turnover for the declined test. From 28 September, the business will be required to reassess their eligibility with the reference to the actual GST turnover in the September Quarter 2020 to be eligible for the JobKeeper payment from 28 September to 3 January 2021 (ie. the September 2020 quarter GST turnover compared to the September 2019 quarter GST turnover).

From 4 January 2021, business will need to reassess the turnover to be eligible for the payment. Again, the test replies on the actual GST turnover in December Quarter 2020 for the payment from 4 January 2021 to 28 March 2021 (ie. the December 2020 quarter GST turnover compared to the December 2019 quarter GST turnover).

The decline % stays the same for the eligibilities, which is 30% for the aggregated turnover under $1 billion, 15% for charities and 50% for those turnover over $1billion. Much complicated two-tiered payment rate From 28 September 2020 to 3 January 2021, the JobKeeper payment rates will be

  • $1,200 for eligible employee who worked 20 hours or more for the 4 weeks period before either 1 March 2020 or 1 July 2020 and
  • $750 per fortnight for those eligible employees who worked less than 20 hours From 4 January 2021 to 28 March 2021, the JobKeeper rates are:
  • $1,000 for eligible employee who worked 20 hours or more for the 4 weeks period before either 1 March 2020 or 1 July 2020 and
  • $600 per fortnight for those eligible employees who worked less than 20 hours There are some alternative tests for employees whose working hours were not usual for the reference period where employee was on annual leave, sick leave etc.

If you would like more information please give one of our friendly Gold Coast advisors a call on (07) 5504 5700.

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