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Jobkeeper 2.0 whats’ new?

This update is put together as information is starting to flow from the Australian Taxation Office – as the legislation arrives I will make more detailed comments on this post.  Note the information below assumes you are a profit making business and gross less than $1 billion a year.

So what is new?

  1. Jobkeeper payments in their present form will continue under the same rules we are familiar with until end of September.  The amount, the tests will not change.  You can still apply for Job Keeper under these rules until the end of September 2020.
  2. From the 1st of October there are new tests.  We have the following information on these tests:
    • You need to use your actual GST turnover as a basis – so you are not expected to ‘guess’ if you will have a downturn in the future.
    •   To be paid up until the 3rd of January 2021 you need to be able to demonstrate that both the June Quarter (April May June 2020) and the September Quarter (July August September 2020) were down by 30% when compared to 2019 equivalent periods.
    • To be paid from the 4th of January 2021 to the 28th March 2021 you need to be able to demonstrate that ALSO the December Quarter (October, November, December 2020)  was down by 30% when compared to 2019 equivalent periods.
    • The tests otherwise remain unchanged – so it appears you need to compare 6 months of your actual GST turnover rather than a single month. (And each 3 month period must pass the test in their own right)
    • There is mention of using the BAS information as a basis for proving you meet the tests but it still appears that you can use other methods (this will need to be rechecked for clarity when the legislation is released)
    • Even if you haven’t applied before but can pass the above test you are able to apply for Job keeper.
  3. The amounts being paid on job keeper are changing over time
    • From 28th September 2020 to 3rd January 2021 there are now 2 rates:
      • Employees and active business participants working 20 hours or more a week in the business are entitled to $1200 per fortnight.
      • Employees and active business participants working LESS than 20 hours a week in the business are entitled to $750 per fortnight.
    • From 4th January 2021 to 28th March 2021
      • Employees and active business participants working 20 hours or more a week in the business are entitled to $1000 per fortnight.
      • Employees and active business participants working LESS than 20 hours a week in the business are entitled to $650 per fortnight.
    • There will be more tests coming to help work out what to do when an employee  is not paid weekly, works different hours.
  4. As the tests are now retrospective – there will be discretion on how you make the jobkeeper payments to eligible employees but details are not yet provided on how that is to be done as yet.