JobKeeper 2.0 eligibility from 28 September clarified

The JobKeeper program has now officially been extended for 6 months to 28 March 2021 and the ATO (Australian Taxation Office) have finally clarified a lot of the speculation which has been circulating the press since Federal Treasurer Josh Frydenberg’s announcement earlier this week.

There are a lot of contributing factors to consider when it comes to confirming eligibility for the JobKeeper extensions commencing from 28 September 2020 and business which qualified previously, will need to pass updated tests to be eligible to receive JobKeeper payments from 28 September.

Determining your eligibility to receive JobKeeper payments from 28 September can be complex and it’s important to get this right. Some businesses may now even qualify for the first time. For this reason Advivo Accountants and Advisors are re-instating our offer to help business’ apply the necessary tests to assess their eligibility to receive JobKeeper payments from 28 September.

Follow this link for more information on how we can help you assess JobKeeper eligibility for your business from 28 September.

The facts:

  • There are two separate JobKeeper extension periods, each with their own actual decline in turnover test which will need to be satisfied.
  • Each extension period has split tiers with different rates of JobKeeper payments.
    • Tier 1 Rates apply to:
      • eligible employees who worked for80hoursor more in the four weeks of pay periods before either 1March 2020 or 1July 2020; and
      • eligible business participants who were actively engaged in the business for80hoursor more in February and provide a declaration to that effect.
    • Tier 2 Rates apply to:
      • Any other eligible employees and eligible business participants.
  • The new actual decline in turnover test is largely based on actual (not forecast) GST turnover for the preceding quarter.
  • An alternative test is available in some instances where the normal comparison period is not appropriate.
  • Businesses will be expected to use their GST reporting method (cash or accruals) when calculating their actual GST turnover.

Extension periods, test periods and JobKeeper payment rates:

  • Extension 1: From 28 September 2020 to 3 January 2021.
    • Actual decline in turnover test period:
      • The quarter ending 30 September 2020 will need to have met the specified decline in turnover percentage (generally 30%) when compared to the quarter ended 30 September 2019 for an employer to be eligible.
    • Split JobKeeper payment rates depending on actual hours worked:
      • Tier 1 rate – $1,200 per fortnight
      • Tier 2 rate – $750 per fortnight
  • Extension 2: From 4 January 2021 to 28 March 2021.
    • Actual decline in turnover test period:
      • The quarter ending 31 December 2020 will need to have met the specified decline in turnover percentage (generally 30%) when compared to the quarter ended 31 December 2019 for an employer to be eligible.
    • Split JobKeeper payment rates depending on actual hours worked:
      • Tier 1 rate – $1,000 per fortnight
      • Tier 2 rate – $650 per fortnight

We understand the JobKeeper program has suffered from much speculation, confusion and misinformation in the lead up to these extensions. Here at Advivo Accountants and Advisors, we care about our clients and want to ensure they are able to access the correct level of support they’re entitled to. If you would like assistance in determining your eligibility for these JobKeeper extensions please contact us today.

Here’s what Advivo is doing to help our clients and friends through these turbulent times and we urge you to please contact us sooner rather than later if you would like any assistance with these.