With just one week to go before the JobKeeper extension takes effect, are you aware of the JobKeeper extension updates, what you can claim and how?

Last Thursday (16 September 2020), the ATO published new information and updates to existing content on the JobKeeper Payment extension.

The new information published relates to:

  • Payment rates
  • 80-hour threshold for employees
  • Decline in turnover tests
  • Actual decline in turnover tests

A further 20 updates to content based on the JobKeeper Payment extension law being passed have also been published. For full details click here

A quick summary

From 28 September 2020, there are two payment rates:

For the period 28 September 2020 – 3 January 2021, your eligibility to claim a tier 1 rate ($1,200 per fortnight) and a tier 2 rate ($750 per fortnight) depends on if the eligible employee(s) or eligible business practitioner meets an 80-hour threshold.

The second JobKeeper extension period starts from 4 January 2021 – 28 March 2021. At this point, both tier rates are reduced concurrently to $1000 per fortnight (Tier 1) and $650 per fortnight (Tier 2).

You will need to nominate the rate you are claiming for each eligible employee and/or eligible business participant.

In addition, for the first period 28 September 2020 – 3 January 2021, if you are a business below $1 billion aggregated turnover, you will need to demonstrate that your actual GST turnover has declined by around 30% in the September 2020 quarter relative to a comparable period – this is generally compared to the same period of time last year.

More details on the actual GST turnover basic test is here

Talk to us now

We understand every business is different, and with a lot to consider, we advise you to speak with Bruno, our JobKeeper expert. He can help support you with:

  • Determining if you meet the new eligibility criteria
  • Demonstrating that an employee meets the 80-hour threshold or not
  • Informing you of the variety of options businesses can use in determining a 28-day reference period
  • Keeping up to date with alternative tests (more guidance on this is soon to be released)
  • Which decline in turnover test you should use

Unfortunately, there have been businesses found to be illegally accessing JobKeeper through false reporting and claiming for employees that did not work there, so the ATO is scrutinising applications.

The new JobKeeper extension is open to new businesses that may not have been eligible in March, provided they meet the eligibility requirements. Please speak to Bruno about this if you think you may be eligible now.

If you have already enrolled for JobKeeper you don’t need to re-enrol, however you will need to demonstrate your eligibility to the new requirements – your Taxpro accountant will be in touch with the information they need.

You can download a summary of changes fact sheet from our downloads section here

For any JobKeeper related enquiries please give Bruno a call on 08 9240 7629 or email bruno@taxproaustralia.com.au