On 21 July 2020, the Government announced that JobKeeper would be extended to 28 March 2021. It will have reduced payments to employers and it will be harder to qualify to receive it.
All employers wanting to claim JobKeeper payments from 28 September 2020 will need to reassess their eligibility. They will need to prove that their turnover has declined based on actual figures.
Some businesses that did not qualify for the original JobKeeper payments may find that they now qualify for the new JobKeeper payments.
Up until 27 September 2020
Nothing changes. If your business and your employees have passed the original eligibility tests for JobKeeper and you have paid the required wages amounts each JobKeeper fortnight, then you can continue to claim JobKeeper up until 27 September 2020. Employees have until the end of October to make any “catch-up” payments for the JobKeeper Extension Scheme.
28 SEPTEMBER 2020 TO 3 JANUARY 2021 – JobKeeper Extension 1
All businesses wanting to receive JobKeeper will need to reassess/check their eligibility. You will need to demonstrate that your ACTUAL GST turnover (as reported on your Business Activity Statement) for the September 2020 quarter have decreased by the relevant amount when compared to the corresponding September 2019 quarter.
The decline in turnover test remains the same as the existing rules, being:
- Entities with turnover greater than $1 billion – 50%.
- Entities with turnover less than $1 billion – 30%.
- ACNC registered charities (excluding schools and universities) – 15%.
The payment rate will be reduced from $1,500 per fortnight to $1,200 per fortnight for eligible employees and eligible business participants who work more than 20 hours per week, this is classed as a Tier 1 payment, and to $750 per fortnight for eligible employees and eligible business participants who work less than 20 hours per week, this is classed as a Tier 2 payment
What happens after 3 January?
4 JANUARY 2021 TO 28 MARCH 2021 – JobKeeper Extension 2
All businesses wanting to receive JobKeeper will need to again reassess their eligibility. You will need to demonstrate that your ACTUAL GST turnover (as reported on your Business Activity Statement) for the December 2020 quarter have decreased by the relevant amount when compared to the December 2019 quarter.
The Tier 1 payment rate will be reduced $1,000 per fortnight for eligible employees and eligible business participants who work more than 20 hours per week, and to $650 per fortnight for eligible Tier 2 employees and eligible business participants who work less than 20 hours per week.
The existing employee eligibility requirements have not changed, and are as follows:
- currently employed and were employed by the employer at 1 March 2020 or 1 July 2020;
- full time, part time, or long-term casuals;
- at least 18 years of age or aged 16 to 17 years and independent or not undertaking full time study;
- an Australian resident; and
- not in receipt of a JobKeeper payment from another employer.
Eligible Business Participant – EBP
Sole traders and some other entities (such as partnerships, trusts or companies) may be entitled to the JobKeeper Payment scheme under the business participation entitlement.
A limit applies of one JobKeeper payment per fortnight for one eligible business participant. Sole traders, one partner in a partnership, one beneficiary of a trust, and one director or shareholder of a company may be regarded as an eligible business participant.
Employers/businesses need to declare their eligibility (fall in turnover) and they need to nominate which “Tier” their employees and EBPs fall under for the scheme.
We will be offering our services to assist with the eligibility assessment and declarations. This will be at an upfront cost.
To find out more please contact our office at firstname.lastname@example.org or call (02)6362 8255
If you are eligible to receive the JobKeeper Extension payments for all your eligible employees or business participants for the entire extended 6-month period, we have estimated that you would receive the total JobKeeper payment amount below:
This is obviously a huge assistance to you during these difficult times.
Obligations and risks for you
If a wrong claim is made or if the ATO in the future decides that you were ineligible to receive the JobKeeper payment, the ATO will require you to repay them any JobKeeper payments that you have received plus penalties and interest.
The ATO requires you to keep all records in relation to your JobKeeper claim for a 5-year period.
Our work plan to assist you
The ATO has specific actions that must take place within tight timeframes for an employer to receive the JobKeeper payments.
These are the actions that we can assist you with:
Employer Eligibility Assessment – 1 October 2020 and 1 January 2021
- Document the fall in turnover % for 2020 quarter compared to 2019 quarter in case of future ATO audit.
Make Correct Wage Payments to Eligible Employees – 28 September 2020 to 28 March 2021
- Ensure your payroll software is correctly set up to record JobKeeper “top up” payments
- Pay the minimum $1,200 or $750 before tax to each eligible employee each fortnight from 28 September 2020 to 3 January 2021 to be able to claim the JobKeeper payment for that fortnight
- Pay the minimum $1,000 of $650 before tax to each eligible employee each fortnight from 4 January 2021 to 28 March 2021 to be able to claim the JobKeeper payment for that fortnight
Monthly JobKeeper Declaration Report – DUE BY 14TH OF EACH MONTH
- Using ATO online services, report to the ATO using their Monthly JobKeeper Declaration Report on the following:
- Reconfirm that your reported eligible employees have not changed
- Input required ATO declaration items
- Notify if any eligible employees have changed or left your employment
We fully understand that times are tough at the moment, and like for your business, our team’s wages need to be paid as well as other operating costs.
There is a lot of work we need to do for you so that you can potentially receive the correct JobKeeper benefit, and we want to be as transparent as possible with you about how we have calculated our price for our services and advice.
Please note that if any additional or complex issues arise from our processing any of the above lodgements and work, we will invoice you at a standard hourly rate of $250 per hour plus GST for our additional work.