JobKeeper extension 2 starts from 4 January 2021 and it runs till 28 March 2021. Eligible employers must submit the new turnover decline form to the ATO regardless you are existing or new participants.
To be eligible for extension 2, you need to pass the actual decline in turnover test when your current GST turnover for the quarter ending 31 December 2020 has declined by 15%, 30% or 50% comparing the quarter ending 31 December 2019.
15% applies if you are an ACNC – registered charity other than a school or university
30% applies if your turnover is $1 billion or less
50% applies if your turnover is more than $1 billion
GST Turnover pursuant to GST ACT 1999 Sec 188.15 is “ at a time during a particular month is the sum of the value of all the supplies that you have made, or are likely to make, during the 12 months ending a the end of the month, other than:
- Supplies that are input taxed; or
- Supplies that are not for consideration; or
- Supplies that are not made in connection with an enterprise the you carry on.
To workout your actual GST turnover for the test period, you must use the accounting basis you are using to report on your Business Activity Statement. For many businesses registered for GST, the GST turnover is the ‘total sales’ reported at label G1 on your BAS less GST collected (1A), where applicable.
There are alternative tests available for:
- Business started after the comparison period started but before 1 March 2020
- Business acquisition or disposal that changes the entity ‘s turnover
- Business restructure that changed the entity’s turnover
- Business that has had a substantial increase in turnover
- Business affected by drought or natural disaster
- Business that has an irregular turnover
- Sole trader or small partnership with sickness, injury and leave
- Business that temporarily ceased trading during the relevant comparison period
To be eligible employee, they were employed by you as of 1 July 2020 as either a:
- Fuller timer, part timer or fixed term
- Long term casual for those employed on a regular and systematic basis during the 12-month period that ended 1 July 2020.
- Were 18 years or older
- Were Australian resident under the Social Security Act 1991, i.e. Australian citizen; permanent resident or a protected Special Category Visa Holder.
Rates of payment
There are different rates of payment depends if an individual employee meets the 80-hour threshold during the reference period. The reference period is the 28 days finishing on the last day of the last pay period that ended before either: 1 March 2020 or 1 July 2020. For eligible business participants the reference period is referring to the month of February 2020.
If employee passed 80-hour thresholder, tier 1 payment applies and from 4 January, the rate is $1,000 per fortnight. Otherwise, tier 2 payment rate applies, and the rate is $650 per fortnight.
How to Claim
For the existing JobKeeper participants, you need to run the turnover decline test for December and if you are eligible, you simply keep lodging the month turnover declaration and update the employee details if applicable. And the new rates start from 4 January.
For new register, you need to enrol your business for the JobKeeper program.
For both existing and new participants for the program, you need to make sure your STP lodgement to the ATO is up to date. ATO allows employers until 31 January 2021 to pay their employees.
If you have any query on this JobKeeper extension, please contact our office.
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