With JobKeeper 1.0 finishing September 28th, the question everyone is asking is “Will I get JK 2.0?” Find out whether you qualify for JobKeeper 2.0, and the steps you need to take to get it.
Here’s what we know:
The first phase of JobKeeper 2.0 starts September 28 2020, finishing 3 January 2021
More employees can qualify for JobKeeper - it’s been extended to include individuals who were employed on 1 July 2020 and not currently nominated for JobKeeper by another entity
You can enrol for JobKeeper anytime until the program closes if you meet the decline in turnover test
There will be two tiers of payments, depending on how many hours an employee or business participant has worked
Eligible employees who have worked 80 hours or more in the four weekly pay periods before either March 1 or July 1 receive Tier 1 rate, $1,200 per fortnight
Other eligible employees will be paid under Tier 2 rate, $750 a fortnight
Businesses need to nominate the rate they are claiming for each eligible employee
Businesses do NOT need to re-assess eligibility or gain permission from employees already registered in the JobKeeper program
Businesses are still required to pay workers first before being reimbursed through the JobKeeper program
IMPORTANT: Businesses will need to assess their eligibility very quickly after 30 September 2020, and will need to do so in many cases before the lodgement of the September 2020 BAS (due 28th October 2020). This is because businesses will need to have met the “wage condition” and paid all eligible employees the required minimum amounts in the ATO stipulated fortnights in October (FN14 & FN15).
The risk of testing eligibility too late could mean that a business has paid out the JK wage, but is later ineligible, and has no ability to recoup the amounts from employees.
Another important reminder is the “One In, All In” requirement, where ALL eligible employees have to have met the “wage condition”, and if anyone has not, the entire business is not eligible for JobKeeper for the relevant fortnight.
Business Eligibility for JobKeeper 2.0:
Businesses must show a fall in actual GST turnover of at least 30% for the September 2020 quarter versus the September 2019 comparison quarter
More details are to follow from the ATO on this calculation, however, we do know Business Activity Statements will be used
The ATO is saying indicatively that the test will be based on GST inclusive income reported at G1 on your BAS, less GST applicable to that income, reported at 1A on your BAS
Alternative tests will be available for special circumstances
What about Sole Traders and Eligible Business Participants?
To be eligible for JobKeeper 2.0, you will need to provide declarations about your involvement in the business during February 2020
To claim the higher tier of payment, you will need to show you were active for 80 hours or more during February 2020
To be eligible for JobKeeper, an employee must be:
currently employed by an eligible employer
full-time, part-time or fixed term employee at 1 July 2020
long term casual employee (employed on a regular and systematic basis for at least 12 months) as at 1 July 2020
Aged 18 years or older as at 1 July 2020 (unless they are financially independent)
If a new employee was receiving JobKeeper from their past employer, and your business is eligible for JobKeeper, you are able to claim JobKeeper for that new employee
As always, talk to us with any questions you have, we are here to help you.