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A Quick Summary of JobKeeper 2.0

On 21 July 2020, the Government announced an extension of the JobKeeper program to 28 March 2021 but with tighter access and reduced rates.  Here’s what you need to know:

In Summary

  • If your business currently receives JobKeeper, your arrangements will generally remain unchanged until 27 September 2020.
  • To continue to receive JobKeeper after 27 September 2020, employers will need to reassess their eligibility with reference to their actual GST turnover for the June, September and December quarters.
  • On or before 1 March 2020 the employer (small and medium size businesses) must have been carrying on a business and the business turnover must have declined by >30%.
  • The business, at any time in the JobKeeper fortnight must neither have a provisional liquidator or liquidator appointed to the business. Also, the business will be ineligible if a trustee in bankruptcy has been appointed to the individual’s property. Furthermore, an employer that had ceased trading, after 1 March 2020 will not be eligible.

Additional declining turnover test

  • To continue to receive JobKeeper from 28 September 2020 to 3 January 2021, the actual turnover for the June 2020 and September 2020 must fall by at least 30% compared to the June 2019 and September 2019 period. Note that the decline for both the quarters needs to be met to continue to receive JobKeeper payments.
  • To receive JobKeeper from 4 January 2021 to 28 March 2021 the actual GST turnover in the June, September, and December 2020 quarters must fall by at least 30% (15% for ACNC-registered charities, 50% for large businesses) compared to the same periods in 2019. The decline for all three of the quarters needs to be met to continue receiving JobKeeper payments.

Eligible Employees

Employee eligibility will remain broadly the same, but the value of the payment will change from 28 September, the general conditions being:

  • On 1 March 2020:
  • Individual was aged 16 years and over; and
  • If the individual was aged 16 or 17, was either financially independent or was not undertaking full-time study;
  • Was an employee other than a casual, or was a long-term casual*; and
  • Was an Australian resident (under the meaning of the Social Security Act 1991), or a resident for tax purposes and held a Subclass 444 (Special category) visa.
  • And, at any point during the JobKeeper fortnight:
  • Was an employee of the employer; and
  • Was not an excluded employee:
    • An employee receiving parental leave pay or dad and partner pay; or
    • An employee receiving workers compensation payments in relation to total incapacity.
  • And, has provided the JobKeeper Payment Employee Nomination to the employer:
  • Agreeing to be nominated by the employer as an eligible employee under the JobKeeper scheme; and
  • Confirming that they have not agreed to be nominated by another employer; and
  • If they are a long-term casual, they do not have permanent employment with another employer.

*A ‘long term casual employee’ is a person who has been employed by the business on a regular and systematic basis during the period of 12 months that ended on 1 March 2020 (1 March 2019 to 1 March 2020). These are likely to be employees with a recurring work schedule or a reasonable expectation of ongoing work.

JobKeeper payment

  • From 30 March 2020 to 27 September 2020: $1,500 per fortnight.
  • From 28 September 2020 to 3 January 2021: 
  • $1,200 per fortnight per employee or business participant who worked ≥ 20 hours per week.
  • $750 per fortnight per employee or business participant working < 20 hours per week.
  • From 4 January 2021 to 28 March 2021:
  • $1,000 per fortnight per employee or business participant who worked > 20 hours per week.
  • $650 per fortnight per employee or business participant working < 20 hours per week.

Note: JobKeeper payments from 28 September 2020 are paid at a lower rate for employees who worked less than 20 hours per week on average in the four weeks of pay periods before 1 March 2020.

ATO assistant commissioner Andrew Watson said in a recent interview, “Once you’re in, you’re in to the end of September. If you meet the eligibility test once, you’re in it for the whole time.” The original eligibility test was a once only test, although there are ongoing conditions that need to be satisfied for each JobKeeper fortnight. 

Should you require more information on Job Keeper,  submit an online enquiry now or call Peter Quinn on +61 2 9580 9166.  We also offer a FREE 45-minute consultation should you have other financial planning, taxation or superannuation issues you may wish to discuss.

The information in this document does not take into account your personal objectives, financial situation or needs, and so you should consider its appropriateness having regard to these factors before acting on it. It is important that your personal circumstances are taken into account before
making any financial decision and it is recommended that you seek assistance from your financial adviser.