On 21 July 2020, the Government announced that due to the ongoing COVID-19 crisis, the JobKeeper Program will be extended by six months until 28 March 2021.

 

There will be some changes effective from 28 September 2020 (when current system stops):

 

  • a two-tier payment rate will apply based on the worker’s average weekly work hours during a reference period;
  • the current $1,500 per fortnight payment rate will be reduced to $1,200 on 28 September 2020 and then to $1,000 on 4 January 2021;
  • the 30% decline in turnover test will be retested on a quarterly basis; and
  • the decline in turnover test will be based on actual GST turnover.

 

The Treasurer has also announced changes on 7 August to increase access to the Program during the proposed extension period (i.e. 28 September 2020 to 28 March 2021).

 

  • From 28 September 2020, entities will only have to meet the quarterly decline in turnover test for the July-September 2020 quarter. – “Extension 1”
  • From January 2021, entities will only have to meet the quarterly decline in turnover test for the October-December 2020 quarter. – “Extension 2”

 

For more detailed information on the points above please see below.

Payment tiers

 

The rate of the JobKeeper Payment will depend on the number of hours an eligible employee works, or an eligible business participant is actively engaged in the business. It will be split into two rates:

Employers and businesses will need to nominate the rate they are claiming for each eligible employee and/or eligible business participant.

Extension 1, 28 September 2020 to 3 January 2021

 

  • You will need to demonstrate that your actual GST turnover has fallen in the September 2020 quarter (July, August, September) relative to a comparable period (generally the corresponding quarter in 2019).
  • Where taxpayers prepare and lodge BAS on a monthly basis, they will need to aggregate the monthly numbers to determine the actual turnover for each quarter.

 

The rates of the JobKeeper Payment in this extension period are:

Extension 2, 4 January 2021 to 28 March 2021

 

  • You will need to demonstrate that your actual GST turnover has fallen in the December 2020 quarter (October, November, December) relative to a comparable period (generally the corresponding quarter in 2019).
  • Where taxpayers prepare and lodge BAS on a monthly basis, they will need to aggregate the monthly numbers to determine the actual turnover for each quarter.
  • You can be eligible for JobKeeper Extension 2 even if you were not eligible for JobKeeper Extension 1.

 

The rates of the JobKeeper Payment in this extension period are:

Business Eligibility

 

What you need to do

From 28 September 2020, you must do all of the following:

 

  • work out if the Tier 1 or Tier 2 rate applies to each of your eligible employees and/or eligible business participants and/or eligible religious practitioners
  • notify the Commissioner and your eligible employees and/or eligible business participants and/or eligible religious practitioners what payment rate applies to them; and
  • during JobKeeper Extension 1, ensure your eligible employees are paid at least

       - $1,200 per fortnight for Tier 1 employees
       - $750 per fortnight for Tier 2 employees

  • during JobKeeper Extension 2, ensure your eligible employees are paid at least

       - $1,000 per fortnight for Tier 1 employees

       - $650 per fortnight for Tier 2 employees.

 

If you are registered for GST and have outstanding BAS statements, you should lodge your BAS for the September 2019 and December 2019 quarters as soon as possible (or for equivalent months, if you report monthly).

 

Fall in turnover

 

  • To claim for fortnights in the JobKeeper Extension 1, you need to determine if you satisfy the actual fall in turnover test for the September 2020 quarter, you must calculate your GST turnover for the quarter of September 2019 and September 2020.
  • For these purposes, the applicable rate of decline in turnover required to qualify for the JobKeeper is determined in accordance with the existing rules (e.g., 30% for entities with an aggregated turnover of $1 billion or less). 
  • You can provide additional turnover information to demonstrate that you satisfy the actual fall in turnover test for the September quarter from the start of October onwards. You must provide it before you complete your November monthly declaration.

Business Eligibility

 

What you need to do

From 28 September 2020, you must do all of the following:

 

  • work out if the Tier 1 or Tier 2 rate applies to each of your eligible employees and/or eligible business participants and/or eligible religious practitioners
  • notify the Commissioner and your eligible employees and/or eligible business participants and/or eligible religious practitioners what payment rate applies to them; and
  • during JobKeeper Extension 1, ensure your eligible employees are paid at least

       - $1,200 per fortnight for Tier 1
         employees
       - $750 per fortnight for Tier 2 employees

  • during JobKeeper Extension 2, ensure your eligible employees are paid at least

       - $1,000 per fortnight for Tier 1
         employees

       - $650 per fortnight for Tier 2
         employees.

 

If you are registered for GST and have outstanding BAS statements, you should lodge your BAS for the September 2019 and December 2019 quarters as soon as possible (or for equivalent months, if you report monthly).

 

Fall in turnover

 

  • To claim for fortnights in the JobKeeper Extension 1, you need to determine if you satisfy the actual fall in turnover test for the September 2020 quarter, you must calculate your GST turnover for the quarter of September 2019 and September 2020.
  • For these purposes, the applicable rate of decline in turnover required to qualify for the JobKeeper is determined in accordance with the existing rules (e.g., 30% for entities with an aggregated turnover of $1 billion or less). 
  • You can provide additional turnover information to demonstrate that you satisfy the actual fall in turnover test for the September quarter from the start of October onwards. You must provide it before you complete your November monthly declaration.

Employee eligibility

 

The reference date for assessing which employees are eligible for the JobKeeper Payment is now 1 July 2020 with effect from 3 August 2020. The reference period for employees regarding their hours worked to determine their tier of payment will be the two fortnightly pay periods prior to 1 March 2020 or 1 July 2020. The period with the higher number of hours is to be used for employees who were eligible on 1 March 2020.

 

To determine if you are an eligible employee two tests must be satisfied at different times:

 

  • either the 1 July 2020 test or the 1 March 2020 test (depending on the JobKeeper fortnight for which your employer is claiming), and
  • the JobKeeper fortnight test.

 

For JobKeeper fortnights starting on or after 3 August 2020, you must either have been be an eligible employee for a JobKeeper fortnight ended on or before 2 August 2020 using the 1 March test, or you must satisfy the 1 July test.

 

1 July 2020 test

This test requires that you met all the following criteria on 1 July 2020:

 

  • you were employed as either a

     - non-casual employee (whether full-time, part-time, or fixed term)

     - long-term casual employee (employed on a regular and systematic basis during the 12-month period that ended 1 July) and, at the time you provide your
       employee nomination notice, you were not a permanent employee of any other employer

 

  • you were 18 years or older (if you were 16 or 17 you can also qualify if you were independent or not studying full-time on 1 July 2020)
  • or you were either:

     - you are an Australian resident (under the Social Security Act 199), or you were

     - both a tax resident of Australia for the purposes of the Income Tax Assessment Act 1936 and the holder of a Subclass 444 (Special Category) visa.

 

What doesn't change

To claim for fortnights in the JobKeeper Extension 1 or 2:

 

  • You don't need to re-enrol for the JobKeeper extension if you are already enrolled for JobKeeper for fortnights before 28 September.
  • You don’t need to reassess employee eligibility or ask employees to agree to be nominated by you as their eligible employer if you are already claiming for them before 28 September.
  • You don't need to meet any further requirements if you are claiming for an eligible business participant, other than those that applied from the start of JobKeeper relating to:

     - holding an ABN, and

     - declaring assessable income and taxable supplies.

 

Employee eligibility

 

The reference date for assessing which employees are eligible for the JobKeeper Payment is now 1 July 2020 with effect from 3 August 2020. The reference period for employees regarding their hours worked to determine their tier of payment will be the two fortnightly pay periods prior to 1 March 2020 or 1 July 2020. The period with the higher number of hours is to be used for employees who were eligible on 1 March 2020.

 

To determine if you are an eligible employee two tests must be satisfied at different times:

 

  • either the 1 July 2020 test or the 1 March 2020 test (depending on the JobKeeper fortnight for which your employer is claiming), and
  • the JobKeeper fortnight test.

 

For JobKeeper fortnights starting on or after 3 August 2020, you must either have been be an eligible employee for a JobKeeper fortnight ended on or before 2 August 2020 using the 1 March test, or you must satisfy the 1 July test.

 

1 July 2020 test

This test requires that you met all the following criteria on 1 July 2020:

 

  • you were employed as either a

     - non-casual employee (whether full-time, part-time, or fixed term)

     - long-term casual employee (employed on a regular and systematic basis during the 12-month
       period that ended 1 July) and, at the time you provide your employee nomination notice, you

       were not a permanent employee of any other employer

 

  • you were 18 years or older (if you were 16 or 17 you can also qualify if you were independent or not studying full-time on 1 July 2020)
  • or you were either:

     - you are an Australian resident (under the Social Security Act 199), or you were

     - both a tax resident of Australia for the purposes of the Income Tax Assessment Act 1936 and
       the holder of a Subclass 444 (Special Category) visa.

 

What doesn't change

To claim for fortnights in the JobKeeper Extension 1 or 2:

 

  • You don't need to re-enrol for the JobKeeper extension if you are already enrolled for JobKeeper for fortnights before 28 September.
  • You don’t need to reassess employee eligibility or ask employees to agree to be nominated by you as their eligible employer if you are already claiming for them before 28 September.
  • You don't need to meet any further requirements if you are claiming for an eligible business participant, other than those that applied from the start of JobKeeper relating to:

       - holding an ABN, and

       - declaring assessable income and taxable supplies.

 

Employee eligibility

 

The reference date for assessing which employees are eligible for the JobKeeper Payment is now 1 July 2020 with effect from 3 August 2020. The reference period for employees regarding their hours worked to determine their tier of payment will be the two fortnightly pay periods prior to 1 March 2020 or 1 July 2020. The period with the higher number of hours is to be used for employees who were eligible on 1 March 2020.

 

To determine if you are an eligible employee two tests must be satisfied at different times:

 

  • either the 1 July 2020 test or the 1 March 2020 test (depending on the JobKeeper fortnight for which your employer is claiming), and
  • the JobKeeper fortnight test.

 

For JobKeeper fortnights starting on or after 3 August 2020, you must either have been be an eligible employee for a JobKeeper fortnight ended on or before 2 August 2020 using the 1 March test, or you must satisfy the 1 July test.

 

1 July 2020 test

This test requires that you met all the following criteria on 1 July 2020:

 

  • you were employed as either a

     - non-casual employee (whether full-time, part-time, or fixed term)

     - long-term casual employee (employed on a regular and
       systematic basis during the 12-month period that ended 1 July)
       and, at the time you provide your employee nomination notice,
       you were not a permanent employee of any other employer

 

  • you were 18 years or older (if you were 16 or 17 you can also qualify if you were independent or not studying full-time on 1 July 2020)
  • or you were either:

     - you are an Australian resident (under the Social Security Act 199),
       or you were

     - both a tax resident of Australia for the purposes of the Income Tax
       Assessment Act 1936 and the holder of a Subclass 444 (Special
       Category) visa.

 

What doesn't change

To claim for fortnights in the JobKeeper Extension 1 or 2:

 

  • You don't need to re-enrol for the JobKeeper extension if you are already enrolled for JobKeeper for fortnights before 28 September.
  • You don’t need to reassess employee eligibility or ask employees to agree to be nominated by you as their eligible employer if you are already claiming for them before 28 September.
  • You don't need to meet any further requirements if you are claiming for an eligible business participant, other than those that applied from the start of JobKeeper relating to:

       - holding an ABN, and

       - declaring assessable income and taxable supplies.

 

Employee eligibility

 

The reference date for assessing which employees are eligible for the JobKeeper Payment is now 1 July 2020 with effect from 3 August 2020. The reference period for employees regarding their hours worked to determine their tier of payment will be the two fortnightly pay periods prior to 1 March 2020 or 1 July 2020. The period with the higher number of hours is to be used for employees who were eligible on 1 March 2020.

 

To determine if you are an eligible employee two tests must be satisfied at different times:

 

  • either the 1 July 2020 test or the 1 March 2020 test (depending on the JobKeeper fortnight for which your employer is claiming), and
  • the JobKeeper fortnight test.

 

For JobKeeper fortnights starting on or after 3 August 2020, you must either have been be an eligible employee for a JobKeeper fortnight ended on or before 2 August 2020 using the 1 March test, or you must satisfy the 1 July test.

 

1 July 2020 test

This test requires that you met all the following criteria on 1 July 2020:

 

  • you were employed as either a

     - non-casual employee (whether full-time,
       part-time, or fixed term)

     - long-term casual employee (employed
       on a regular and systematic basis
       during the 12-month period that ended
       1 July) and, at the time you provide your
       employee nomination notice, you were
       not a permanent employee of any other
       employer

 

  • you were 18 years or older (if you were 16 or 17 you can also qualify if you were independent or not studying full-time on 1 July 2020)
  • or you were either:

     - you are an Australian resident (under
       the Social Security Act 199), or you
       were

     - both a tax resident of Australia for the
       purposes of the Income Tax
       Assessment Act 1936 and the holder
       of a Subclass 444 (Special Category)
       visa.

 

What doesn't change

To claim for fortnights in the JobKeeper Extension 1 or 2:

 

  • You don't need to re-enrol for the JobKeeper extension if you are already enrolled for JobKeeper for fortnights before 28 September.
  • You don’t need to reassess employee eligibility or ask employees to agree to be nominated by you as their eligible employer if you are already claiming for them before 28 September.
  • You don't need to meet any further requirements if you are claiming for an eligible business participant, other than those that applied from the start of JobKeeper relating to:

       - holding an ABN, and

       - declaring assessable income and
         taxable supplies.