It’s round two for JobKeeper. Key changes outlined below.
Bridgepoint Group provides a quick look at the new requirements JobKeeper program.
Everything in place now remains until 27 September 2020. From 28 September, employers will need to prove a decline in turnover to claim JobKeeper.
The reassessing eligibility refers to actual GST turnover for June and September 2020 quarters. A company will need to reassess its eligibility for JobKeeper support each quarter (add December 2020 to the assessment period). Payments will be made until 28 March 2021 under JobKeeper 2.0.
The 30% decline in turnover remains. Unless your businesses turnover is likely to be $1 Billion or more, then a 50% decline in turnover applies. The Government’s detailed information into Jobkeeper 2.0 can be read here.
All JobKeeper payments hinge on 1 March 2020. If a business has ceased trading, is not trading in its usual business manner or commenced trading after 1 March 2020, it is not eligible.
What are the changes in turnover tests?
The major change is that from 28 September are based on actual GST turnover, not projected GST turnover. Projected turnover was used the period 30 March 2020 to 28 September 2020.
The period 28 September to 3 January 2021 proof is based around ‘actual’ decline in GST turnover. The decline is to be proven over both the June and Sept 2020 quarters. GST turnover will be compared to the same periods last year (2019).
The period 4 January to 28 March 2021 will compare GST turnover decline over the three quarters June, September and December with the same quarter in 2019. A decline in each of the three quarters needs to be proven to continue receiving JobKeeper.
Treasury has provided examples of the calculations in a fact sheet which can be read here.
As a business, you will need to provide your JobKeeper assessment before your BAS lodgement due to timing factors. You need to determine eligibility early to meet the wage conditions for your employees who are eligible. If you need assistance, Bridgepoint Group’s expert tax team can assist you in compliance with government requirements. Make an appointment with one of our Taxation team.
New recipients are able to apply for JobKeeper as long as they meet existing requirements and the turnover tests as above.
The eligibility criteria remain the same but payment decrease from 28 September 2020.
- The period until 27 September 2020 payments per fortnight remains at $1500 per employee.
- The period 28 September to 3 January sees the payment reduce to $1200 per employee per fortnight if that employee works 20 hours or more. If the employee works less than 20 hours per week the payment is $750 per fortnight.
- The period 4 January 2021 to 28 March 2021, payment is $1000 per employees per fortnight, for 20+ hours worked per week. Under 20 hours of work per week, the payment is $650 per fortnight.
If you have passed requirements for JobKeeper you will receive JobKeeper in its current guise until 27 September 2020. The original test was a once-only.
Moving forward there will be a reintroduction of asset and partner income tests for Job Seeker. As well, proof of job-seeking requirements to continue receiving Job Seeker will be introduced from 27 September 2020.
These are difficult times for business owners. We encourage you to contact BridgePoint Group to assist you to ensure all of your compliance needs are met. The Government stimulus packages are in place to assist businesses to cope with unprecedented economic pressures. Many business owners will have a lot of unusual matters to deal with on a day to day basis. The recovery will come. We are here to help, allowing you more time to keep your business moving forward. We are here to help now and the future of your business.
Contact the BridgePoint team on:
1300 656 141