JobKeeper 2.0 Legislation—Passed
JobKeeper 2.0 legislation has now been passed by the Senate on Tuesday, with minor amendments and extending the governments wage subsidy program by six months to 28 March 2021. This will replace the $1,500 a fortnight payment with a new two-tier payment rate from 28 September 2020. Treasurer Josh Frydenberg has highlighted that eligibility for JobKeeper 2.0 will now be based on single quarters, in light of the stage 4 restrictions facing Melbourne.
The new bill will also allow legacy employers – those that previously qualified for JobKeeper but are unable to qualify for JobKeeper 2.0 – to continue to access temporary Fair Work Act provisions for a further six months if they are experiencing a 10 percent decline in turnover. These temporary Fair Work Act provisions include giving JobKeeper enabling directions or requests for employees to change their days or times of work.
The 10 per cent decline in turnover certificate must confirm, based on the information provided, that the specified employer satisfied the 10 per cent decline in turnover test for the designated quarter applicable to a specified time.
New rate starts from 28 September 2020:
There will be a tier 1 and a tier 2 JobKeeper rate.
Tier 1 rate applies for:
- eligible employees who were working for 20 hours or more a week on average in the four weeks of pay periods before either 1 March 2020 or 1 July 2020, and
- eligible business participants who were actively engaged in the business for 20 hours or more per week on average.
Tier 2 rate applies for:
- other eligible employees and business participants
GST Turnover Test
- To be eligible for the Oct to Dec 2020 quarter businesses will need to demonstrate a decline in their GST turnover for the Jul to Sep 2020 quarter.
- To be eligible for the Jan to Mar 2021 quarter businesses will need to demonstrate a decline in their GST turnover for the Oct to Dec 2020 quarter.
10% Decline in Turnover
- This is not an alternate test for JobKeeper eligibility.
- If Employers who previously qualified for JobKeeper no longer meet the 30% decline in GST turnover but can demonstrate a 10% decline, can continue to access the temporary Fair Work Act provisions for a further six months.
- The temporary Fair Work Act provisions include requests for employees to change their days or times of work.
- Employers with 15 employees or more will need to obtain a 10% decline in turnover certificate from a registered tax agent, BAS agent, or a qualified accountant if they intend to rely on the temporary Fair Work Act provisions.
- Small business employers with less than 15 employees can make a statutory declaration instead of getting a certificate.
- Keep up to date with the Australian Tax Office (ATO) JobKeeper key dates and Extension of JobKeeper Payment.
Contact Advivo for further assistance with applying or assessing your eligibility for JobKeeper.
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.