JobKeeper 1.0 changes into 2.0

JobKeeper 1.0 changes into 2.0

a person stacking coins on top of a table

It is over for many but continues for some…

JobKeeper 2.0

Less employers, less employees, lower rates and two different tiers.

Fair Work JobKeeper discretions continue for some…

Which Employers?

Businesses currently receiving JK who experience an ongoing decline in actual GST Turnover of 30% or more (50% large, 15% NFP)

or

A business is allowed to enter JK if they meet all eligibility requirements including decline in turnover

It includes Eligible Business Participants (EBPs), specifically including the self-employed.

‘Ongoing actual decline in turnover’

An assessment of the decline in actual GST Turnover results for the quarter ended 30th September 2020 (July – August – September period) will mean that an employer is eligible for JK for October to December and a decline in turnover for the quarter ended 31st December 2020 will mean eligibility for JK for January to March 2021.

“Actual GST Turnover” is the GST exclusive taxable value of supplies made during the period (GST & FRE but not Input Taxed).

The sale of assets is also included in the GST turnover calculation.

Alternative tests may be allowed by the ATO. Refer to the existing alternate tests.

Timing issue: Employers may have to pay staff immediately after 28 September before they are able to assess the decline in actual turnover for the September quarter.

Employers now have until 31 October to meet the wage condition (to top up wages if required).

Impact: Employers who did not decline 30% in their Actual GST Turnover for the September quarter, will cease JK as from 28th September.

It is a QUARTERLY test of actual GST turnover in 2020 compared to the same quarter in 2019.

How much JobKeeper?

JK amounts change to $1200 for those employees who worked more than 80 hours (Tier 1) in a four week period in February 2020 (or in a four week period in June) and $750 for those that worked less (Tier 2).

The amounts will further reduce to $1000 and $650 from January 2021.

Employers will need to notify the ATO of the rates for each employee.

Actual GST Turnover

For the September quarter (July – September period)

The June quarter is now irrelevant (it’s not taken into account)

To be eligible for JK October to December, the business must have had at least 30% decline in the September quarter

To be eligible for JK in January to March 2021, they must have a decline in turnover in the December quarter (October – December period)

Fair Work JobKeeper Directions

Extended until 28th March 2021

  • If an employer is still on JK – Qualifying employer
  • If an employer has more than a 10% decline (but less than the 30%) in turnover – Legacy employer
  • Legacy employers must have a ‘Certificate’ that attests to their decline in turnover
  • Small employers (less than 15 employees in hadcount) can sign their own statutory declaration
  • Other employers must have an Advisor (BAS Agent, TAX Agent, Qualified Accountant)

Qualifying employers have access to the full range of Fair Work JK Directions

Legacy employers have modified provisions

Extension of JobKeeper provisions in the Fair Work Act

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