JobKeeper Payments Extended
The JobKeeper payments have been extended; starting from 28 September 2020 to 28 March 2021 for those businesses that meet the eligibility requirements.
This extension has been broken down into two parts:
JobKeeper extension 1: runs from 28 September 2020 to 3 January 2021. To be eligible, your business must compare your September 2020 quarter turnover with the September 2019 quarter’s turnover. This criterion is required for those who are enrolling for the first time.
However, you will also have to satisfy the original decline in the turnover test as well. If you were entitled to receive JobKeeper before 28 September 2020, then you have already met that test.
If you are already receiving JobKeeper payments, you do not need to re-enrol.
The key date to keep in mind is that you have until 31 October 2020 to submit to the ATO your decline in turnover for that September 2020 quarter.
Note, there are two Tiers for the JobKeeper payment in this extension period:
Tier 1 is $1,200 gross (before tax) per fortnight per eligible employee.
Tier 2 is $750 gross (before tax) per fortnight per eligible employee.
Note, only workers employed before 2 July 2020 are eligible.
For this extension period, your employees must be paid at least this amount, depending on what Tier they fall under.
How to calculate your decline in turnover:
If your aggregated turnover is less than $1 billion, then there must be a decline of 30% in the GST turnover to the quarter ended 30 September 2020 compared to the quarter ended 30 September 2019.
If, however, you are an Australian Charity or a Not for Profit entity, then the declined percentage in GST turnover is 15%. This test excludes schools and universities.
Those businesses that have an aggregated GST turnover of more than $1 billion, the percentage is 50%.
What is the rate difference between Tier 1 and Tier 2?
Tier 1 is for those employees that worded 80 hours (or more) in the four weeks of pay periods either before 1 March 2020 or 1 July 2020, and the business was actively engaged in the business for 80 hours or more in February 2020 and declared that to the ATO.
Tier 2 any other eligible employees and eligible business participants.
JobKeeper extension 2 runs from 4 January 2021 to 28 March 2021. This time the GST turnover declining test compares the December 2020 quarter to that of the December 2019 quarter.
The Tiers change too:
Tier 1 is $1,000 gross (before tax) per fortnight per eligible employee.
Tier 2 is $650 gross (before tax) per fortnight per eligible employee.
Again, you still must satisfy the original decline in the turnover test.
If you require guidance in applying for the JobKeeper payments, please contact ERA Tax, and we will be happy to assist you.