What’s next and will you qualify for JobKeeper 2.0?
We are fast approaching the end of the first JobKeeper (JobKeeper 1.0) assistance package…. So what’s next and will you qualify for JobKeeper 2.0?
JobKeeper 1.0 – Until 27 September 2020
If you currently qualify for JobKeeper, then you will continue to qualify up to 27 September. Your business will receive its final entitlement under JobKeeper 1.0 in early October.
There were some changes to eligible employees announced on 14 August, so double check if any additional employees may now qualify (essentially employees that meet the definition of eligible at 1 July, rather than the previous 1 March now qualify for JobKeeper).
Otherwise, there are no real changes pre 27 September 2020.
JobKeeper 2.0 – Post 28 September 2020
This is referred to as the JobKeeper Extension on Government and ATO websites. There are some key changes that apply from 28 September which are summarised below.
- Importantly, you need to re-qualify to determine if you will be eligible for JobKeeper support for the December 2020 Quarter, and then re-qualify again to see if you qualify for the March 2021 Quarter.
- Turnover needs to be down 30% (in most cases) for the quarter. For example, to be eligible for JobKeeper support for the December 2020 Quarter, you must be down 30% (in most cases) when comparing the BAS income from the September 2020 quarter, to the September 2019 quarter. The Government have removed the cash vs accruals income distinction and “one-month” tests.
To qualify for the 4 January 2021 to 28 March 2021 quarter (March 2021 quarter), you must requalify using the December 2020 quarter as the test period.
- The JobKeeper Payment Rate has also changed:
Period 28 September 2020 to 3 January 2021
- $1,200 per fortnight for eligible employees for eligible employees who in the four weekly pay periods before 28 September were working in the business for 20 hours or more a week.
- $750 per fortnight for employees who were working less than 20 hours per week.
Period 4 January 2021 to 28 March 2021
- $1,000 per fortnight for eligible employees for eligible employees who in the four weekly pay periods before 28 September were working in the business for 20 hours or more a week.
- $650 per fortnight for employees who were who were working less than 20 hours per week.
The minimum payment to employees per fortnight mirrors the payment rates above.
Actions required by you:
- Check whether any new employees are eligible for the final payments in September. Where new employees are eligible, you must complete the necessary declaration and pay the minimum amounts, and indicate eligible on the monthly reporting to the ATO.
- Complete your final reporting for the current JobKeeper entitlement in early October, remember to check for employees who are eligible in the step above.
- Check if you are likely to be down 30% in the September 2020 quarter, when comparing to the September 2019 Quarter. Of course, have Holmans assist you where required.