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September 04 - Business Advice - Tax Accounting

JobKeeper 2.0: What’s the go?

JobKeeper extension

For many of our clients, JobKeeper has offered a lifeline to get them and their businesses through the last few months. After much anticipation, the Federal Government has announced an extension of the scheme, with some key differences. 

Newly Eligible Employees

  • Employees hired between 1st March – 1st July may now be eligible
  • Casual long term employees who have now been with you for 12 months+, may eligible 
  • Any employees that were 17 and are now 18 are eligible
  • Any employees that are now Australian residents (and weren’t on 1st March) are eligible 

The newly eligible employees can be claimed from August 3rd (fortnight 10). Forms needed to be filled out and submitted by August 31st.

It’s important to note that once an employee has filed their form with an employer, they cannot revoke it unless they’re stood down. Under these circumstances, the employee can choose to submit a JobKeeper claim with a different employer. This is simply to prevent claims from multiple employers.

Keep in mind that you can apply at any point whilst the program is running if your circumstances change and you do then qualify. 

Payment Rate To Steadily Decline

  • Payment rates will operate as a two-tiered system as of 28th September 28th. Employees who work in the business for 20+ hours per week will be eligible for the full payment, and less than 20 hours per week will receive a partial payment

Full Payment

  • As of 28th September 2020, the payment rate will decline from $1500 per fortnight to $1200 per fortnight
  • It will decrease again on 4th January 2021 to $1000 per fortnight

Partial Payment

  • As of 28th September 2020, the payment rate will be $750 per fortnight
  • It will decrease again on 4th January 2021 to $650 per fortnight

Official End Date

  • Under the current update, JobKeeper will officially end on 28th March 2021

Changes To Turnover Test

  • Under the current scheme, the decline in turnover test operates by comparing months (July 2020 to July 2019 for instance)m co
  • Under the extended scheme, GST turnover will operate by comparing quarters
  • To qualify, businesses with under $1 billion in revenue must still show a 30% decrease 

Further Resources

Federal Govt JobKeeper 2.0 Fact Sheet

Treasury JobKeeper 2.0 Article

Stimulus Package Overview