Changes to JobKeeper apply 28 September 2020
New changes to the JobKeeper scheme applies on 28th September. With changes to eligibility, are you prepared?
Eligibility relates to two extensions, click below to download a snapshot of the changes for easy reference:
This newsletter includes a range of information for businesses, not-for-profits and individuals, including:
Wage conditions and key timelines for JobKeeper extension 1
Businesses and not-for-profits - What you need to do?
What is different?
What hasn't changed?
Wage conditions and key timelines for JobKeeper extension 1:
For the JobKeeper fortnights commencing on 28 September 2020 and 12 October 2020 only, the ATO are allowing employers until 31 October 2020 to meet the wage condition for all employees in the JobKeeper scheme.
Businesses or not-for-profits, what you need to do:
Prepare now for the changes which come into effect from 28 September 2020, you must:
Work out if the tier 1 or tier 2 rate applies to each of your eligible employees, and/or eligible business participants, and/or eligible religious practitioners.
Notify the ATO and your eligible employees, and/or eligible religious practitioners what payment rate applies to them.
During the JobKeeper extension #1 (28 September 2020 - 3 January 2021) ensure your eligible employees are paid at least $1,200/fortnight for tier 1 employees, or $750/fortnight for tier 2 employees.
During the JobKeeper extension #2 (4 January 2020 - 28 March 2021) ensure your eligible employees are paid at least $1,000/fortnight for tier 1 employees, or $650/fortnight for tier 2 employees.
For your eligible religious practitioners, you must provide certain benefits to them in the fortnight. Find out more here.
If you are registered for GST and have outstanding BAS statements, you should lodge your BAS for the September 2019 and December 2019 quarters as soon as possible (or for equivalent months, if you report monthly). Un-lodged BAS statements may hold up your application for JobKeeper Payments under the JobKeeper extension.
Decline in turnover
The actual decline in turnover test is satisfied for JobKeeper extension #1 when your current GST turnover for the quarter ending 30 September 2020 (July, August and September) has declined by the specified shortfall percentage (30%, 50% or 15%) in comparison to your GST turnover for the quarter ending 30 September 2019.
The actual decline in turnover test is satisfied for JobKeeper extension #2 when your current GST turnover for the quarter ending 31 December 2020 (October, November and December) has declined by the specified shortfall percentage (30%, 50% or 15%) in comparison to your GST turnover for the quarter ending 31 December 2019.
What is different?
Calculating your financial eligibility
Unlike when you calculated the original decline in turnover test, you do not use your projected GST turnover for the relevant quarter being tested. You use your current GST turnover.
To work out which supplies you have made in the turnover test period, you must use the accounting basis you used for GST reporting purposes. Depending on your circumstances, you could use a cash basis or a non-cash basis.
A GST accounting basis will apply to allocate supplies to a test period regardless of whether:
the supply was a taxable supply
you report GST on a monthly or quarterly basis, or
For many businesses registered for GST, this calculation will match the ‘total sales’ reported at G1 on your BAS minus GST payable (1A), where applicable.
If you are not registered for GST, you will work out your turnover using either the GST cash or non-cash basis of accounting.
You can provide additional turnover information to demonstrate that you satisfy the actual decline in turnover test for the September quarter from the start of October onwards. You must provide it before you complete your November monthly declaration.
Alternative tests for determining actual decline in turnover may be available in some circumstances. These will apply in a similar way to the alternative tests for the original decline in turnover test. However, they must be applied on the basis that the turnover test period is a quarter. The ATO will publish more information on the alternative tests for the actual decline in turnover test once it is available.
What hasn't changed?
Claiming JobKeeper
To claim for fortnights in the JobKeeper extension #1 or #2:
You don't need to re-enrol for the JobKeeper extension if you are already enrolled for JobKeeper for fortnights before 28 September.
You don’t need to reassess employee eligibility or ask employees to agree to be nominated by you as their eligible employer if you are already claiming for them before 28 September.
You don't need to meet any further requirements if you are claiming for an eligible business participant, other than those that applied from the start of JobKeeper relating to
holding an ABN, and
declaring assessable income and supplies.
Keeping your employees informed
If you were a business receiving a JobKeeper subsidy, you will need to ensure you email or write to your employees prior to 27 September to advise:
You envisage that you will meet the business requirement to extend JobKeeper and what that means to them individually re the 20 hour rule and what they are likely to receive
If not, that JobKeeper 1.0 will cease and any employees receiving top-up payments will no longer receive them
If you are not eligible to extend JobKeeper but fall into the Legacy employee category, that you let them know in writing
New JobKeeper participants
The JobKeeper scheme will remain open to new participants, provided they meet the eligibility requirements for the relevant period.