The Federal Government has last week released its key updates for JobKeeper V2.
This blog is to update you about what you need to do to continue to claim the JobKeeper payments or start to receive JobKeeper payments from 28 September 2020.
Our services and advice are very important to you in 2 key ways.
All employers wanting to claim JobKeeper payments from 28 September 2020 will need to reassess their eligibility again and prove that their turnover has declined based on actual figures.
Some businesses that did not qualify for the original JobKeeper payments may find that they now qualify for the new JobKeeper payments.
The JobKeeper scheme has been extended from 28 September 2020 until 28 March 2021.
There are two separate extension periods. For each extension period, an additional actual decline in turnover test applies and the rate of the JobKeeper payment is different.
All businesses wanting to receive JobKeeper will need to reassess their eligibility. You will need to demonstrate that your ACTUAL GST turnover (as reported on your Business Activity Statement) for the September 2020 quarter has decreased by the relevant amount when compared to the corresponding September 2019 quarter, and then similarly for the December 2020 quarter when compared with the December 2019 quarter.
The decline in turnover test remains the same as the existing rules, being:
The rate of the JobKeeper V2 payment in each extension will depend on the number of hours:
It will be split into 2 rates:
It will be split into 2 rates:
Tier 1 Rate
Tier 2 Rate
Applies to:
Applies to:
The rates are:
The rates are:
Employers and businesses will need to nominate the rate they are claiming for each eligible employee or eligible business participant.
Sole traders and some other entities (such as partnerships, trusts or companies) may be entitled to the JobKeeper Payment scheme under the business participation entitlement. A limit applies of one JobKeeper payment per fortnight for one eligible business participant. Sole traders, one partner in a partnership, one beneficiary of a trust, and one director or shareholder of a company may be regarded as an eligible business participant.
If a wrong claim is made or if the ATO in the future decides that you were ineligible to receive the JobKeeper payment, the
ATO will require you to repay them any JobKeeper payments that you have received plus penalties and interest.
The key risks to you as the employer include:
During each JobKeeper extension, ensuring your eligible employees are paid the right rate according to their tier.
Ensure your payroll software is correctly set up to record JobKeeper “top up” payments if needed.
If you would like to know more or see if you are eligible for JobKeeper 2.0 please contact the team at GFA