The Government has extended the JobKeeper 2.0 payment package by a further 6 months to 28 March 2021. It replaces the original $1,500 a fortnight which finishes on 27 September 2020.
The 2 new extensions of Jobkeeper are for pay periods:
There are now new eligibility tests and a reduced two-tier (Tier 1 and Tier 2) payment rate, starting from 28 September 2020.
Turnover Test
Employers will need to reassess their turnover for each of the 2 new periods:
Extension 1 (28 September 2020 to 3 January 2021), you'll need to demonstrate that your actual GST turnover has fallen in the September 2020 quarter and compare it to the same quarter in the previous year.
Extension 2 (4 January 2021 to 28 March 2021), you'll need to demonstrate that your actual GST turnover has fallen in the December 2020 quarter and compare to the previous year’s quarter.
Employee Eligibility Test
The new test date for assessing employees is 1 July 2020. Employees must be fulltime, part-time or long term casual employees employed as of 1 July 2020.
Employers must calculate the correct JobKeeper rates for each employee:
28 September 2020 to 3 January 2021
4 January 2021 to 28 March 2021
To read some of our Frequently Asked Questions on JobKeeper Click here.
Note: This guide references the original JobKeeper 1.0 eligibility criteria and payment rates, whilst dates and payments may vary, steps remain the same.
From 20 April 2020 employers (or your registered tax professional) can enrol for the JobKeeper payment:
Step 1 – Register your interest and subscribe for JobKeeper payment updates.
Step 2 – Check you and your employees meet the eligibility requirements.
Step 3 – Continue to pay at least $1,500 to each eligible employee per JobKeeper fortnight (the first JobKeeper fortnight is the period from 30 March to 12 April).
Step 4 – Notify your eligible employees that you are intending to claim the JobKeeper payment on their behalf and check they aren’t claiming JobKeeper payment through another employer or have nominated through another business.
Step 5 – Send the JobKeeper employee nomination notice to your nominated employees to complete and return to you by the end of April if you plan to claim JobKeeper payment for April. Keep it on file and provide a copy to your registered tax agent if you are using one.
Step 6 – From 20 April 2020, you can enrol with us for the JobKeeper payment using the Business Portal and authenticate with myGovID. You must do this by the end of April to claim JobKeeper payments for April.
Step 7 – In the online form, provide your bank details and indicate if you are claiming an entitlement based on business participation, for example if you are a sole trader.
Step 8 – Specify the estimated number of employees who will be eligible for the first JobKeeper fortnight (30 March – 12 April) and the second JobKeeper fortnight (13 April – 26 April).
From 4 May onwards you (or your registered tax agent) will be able to apply for the JobKeeper payment for your eligible employees.
Step 1 – Apply to claim the JobKeeper payment by logging in to the ATO Business Portal
Step 2 – Ensure you have paid each eligible employee a minimum of $1,500 per JobKeeper fortnight before tax.
Step 3 – Identify your eligible employees in the application form by
Step 4 – Submit the confirmation of your eligible employees online and wait for the confirmation screen.
Step 5 – Notify your eligible employees you have nominated them.
Step 6 – We will pay you the JobKeeper payment for all eligible employees after receiving your application.
Step 7 – Each month, you will need to reconfirm that your reported eligible employees have not changed through ATO online services, the Business Portal or via your registered tax agent. This will ensure you will continue to receive the JobKeeper payments from us. You do not need to retest your reported fall in turnover, but you will need to provide some information as to your current and projected turnover. This will be done in your monthly JobKeeper Declaration report.
Step 8 – If your eligible employees change or leave your employment, you will need to notify us through your monthly JobKeeper Declaration report.
If you use the ATO Business Portal, you will need a myGovID linked to your ABN in relationship Authorisation Manager (RAM). You can find out how to set this up at ato.gov.au/mygovid
For more information on the payment, read the Australian Government's fact sheet.
Example 1: Star Hairdressing – multiple employees on different wages
Lucy owns a hairdressing business with two employees. The business is still operating at this stage, but Lucy expects her turnover will decline by more than 30% in the coming months.
Both employees are currently working for the business:
Does Lucy meet the JobKeeper eligibility criteria?
Yes, Lucy is eligible to receive the JobKeeper payment for each employee. Star Hairdressing and its employees will benefit
How does Lucy apply?
1. Lucy registers her initial interest through the ATO from 30 March 2020.
2. Lucy applies to the ATO with details about her eligible employees.
3. Lucy advises her employees that she has nominated them as eligible to receive the payment.
4. Lucy provides information to the ATO on a monthly basis and receives the payment monthly.
Example 2: Bella’s Beauty Salon – employees who have been stood down without pay
Bella runs a beauty salon in Western Australia and normally employs three permanent part-time beauticians.
The government has directed beauty salons to no longer operate and she has had to shut her business. Bella stood down her three beauticians without pay after 1 March 2020.
Does Bella meet the JobKeeper eligibility criteria?
Yes, Bella’s turnover will decline by more than 30%, so she is eligible to apply for the JobKeeper payment for each employee and pass on $1,500 per fortnight before tax to each of her three beauticians for a maximum of six months.
How will Bella and her employees benefit?
For more information on eligibility criteria for both employers and employees, read What exactly is the JobKeeper payment?
You can also stay up to date with the most recent COVID-19 announcements relating to your business here.
Explore our free Business Guide to Coronavirus for dedicated advice, support and solutions to help your business through these uncertain times.
Siobhann has over 18 years human resources business partnering experience in large organisations. She more recently established and led a people advice team of senior workplace advisors before moving into content writing.
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