A reminder of what you need to know for Jobkeeper 2.0.

28th  September is only days away and you need to be aware of the changes to eligibility for JobKeeper as well as the payment structure.

 The two new extension pay periods of JobKeeper are:

  • 28 September 2020 to 3 January 2021

  • 4 January 2021 to 28 March 2021

The two tests to pass for JobKeeper eligibility are:

  • Turnover test

  • Employee eligibility test (this includes sole traders and small businesses)

IMPORTANT NOTE:  If you were not eligible for JobKeeper 1.0 you may be eligible for JobKeeper 2.0

Turnover Test

As with the first stage of JobKeeper, employers must be carrying on a business and their turnover must fall by 30% to be eligible.  Employers now need to reassess any drop-in turnover based on the new period.

28 September – 3 January will need a demonstrated drop in actual GST turnover based on the September quarter the previous year.  The same applies for the 4 January – 28 March extension which will require a comparison to the December quarter with the previous year.

Eligibility changes for employees

  • The eligibility reference date has moved from 1 March 2020 to 1 July 2020.

  • Eligible employees can also include those who are newly employed or existing employees who were not eligible on 1 March 2020.

IMPORTANT NOTE: There is no need to retest employees who are already enrolled from the original 1 March 2020 reference date.  If you missed the 31 August deadline for enrolling newly eligible employees, this will not result in you losing JobKeeper.   There are penalties that can be enforced by the ATO so you are encouraged to do so as soon as possible.

New Payment Rates

The new Tier 1 and Tier 2 payment rates will be introduced from the first pay cycle following 27 September 2020.  The new rates will be split into a high and low rate based on average weekly hours worked during the reference period, being the 4 weeks prior to 1 March 2020 or for newly eligible employees, for 1 July 2020. 

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Fairwork changes

You can find out more about the Fair Work Act changes in our supplementary article here.  In summary:

  • Most Fair Work temporary JobKeeper provisions are extended until 28 March 2021.

  • Eligible JobKeeper employers can continue to access the full range of special Fair Work measures implemented because of the introduction of JobKeeper 1.0.

  • Employers who are not eligible for JobKeeper from 28 September 2020 but hold a 10% decline in turnover certificate may still be eligible to access a range of Fair Work measures.

Help is close at hand

Although many employers have now become familiar with the JobKeeper system it remains quite daunting.  It is always advisable to double check with a professional to ensure you fully understand your entitlements and carry out the required process appropriately.  The Evolution team are always happy to lend a helping hand. We know the changes and how best to optimise your results.  Please do not hesitate to contact us if you need any assistance, big or small.

 

Jo Bright