What to know about the latest extensions to Job Keeper
The Australian Government JobKeeper Payment has been extended. If you haven’t yet assessed your turnover position, you still have time. Here’s what you need to know:
The required fall in GST turnover remains the same:
- 30% for businesses with a turnover less than $1 billion
- 50% for businesses with a turnover more than $1 billion
- 15% for or ACNC-registered charities other than Universities and Schools
JobKeeper rate has been split into two tiers:
TIER 1 is for:
- Eligible employees who worked for 80 hours or more in the four weeks of pay periods before either 1 March 2020 or 1 July 2020, and
- Eligible business participants who were actively engaged in the business for 80 hours or more in February 2020.
- The Tier 1 rate for Extension 1 (28 September 2020 – 3 January 2021) = $1,200.00
- The Tier 1 rate for Extension 2 (4 January 2021 – 28 March 2021) = $1,000.00
TIER 2 rate:
- Applies for other eligible employees and business participants.
- The Tier 2 rate for Extension 1 (28 September 2020 – 3 January 2021) = $750.00
- The Tier 2 rate for Extension 2 (4 January 2021 – 28 March 2021) = $650.00
Employers and businesses will need to nominate the rate they are claiming for the eligible employees and/or eligible business participants.
What you need to show to be eligible for the JobKeeper extension
In order to receive the JobKeeper Payment until 3 January 2021, employers need to demonstrate their actual GST turnover for the September 2020 quarter has declined by at least 30 percent.
In order to receive the JobKeeper Payment from 4 January 2021 to 28 March 2021, employers will need to demonstrate a decline in the December 2020 quarter.
Deadlines to be aware of for the extension of JobKeeper
The ATO has given employers until 31 October 2020 to meet the wage condition for the JobKeeper fortnights starting 28 September and 12 October. To determine eligibility as soon as possible, ensure your September 2020 BAS has been prepared and lodged with the ATO and compare this with the September 2019 BAS.
At Greenhalgh Pickard we are working hard to help our clients determine their eligibility. If you need clarification on your eligibility, please contact Greenhalgh Pickard as soon as possible.
I don’t know if I’m eligible. Should I make the next JobKeeper payment?
If you’re not sure of your eligibility, then don’t make the next JobKeeper payment; wait until you know you are eligible before paying.
If you are seeking assistance on your JobKeeper eligibility, please contact the Accounts Team at Greenhalgh Pickard.