JobKeeper Extended

JobKeeper Extended for September 2020 to March 2021

The first JobKeeper scheme ends on 27th September 2020.

To qualify for the next round of JobKeeper the business must meet the new ‘Actual Decline in Turnover Test’.

For JobKeeper extension 1 (28th September 2020 to 3rd January 2021) this is comparing the turnover for the July 2020 to September 2020 quarter to the turnover for the July 2019 to September 2019 quarter.

Businesses with a turnover of $1 billion or less will need to have faced a minimum 30% fall in turnover to qualify.

The ATO is expecting the turnover used to match the BAS lodged. Alternative tests are available for other circumstances.

Contact your accountant for help assessing eligibility.

The extensions are over two quarters;

Extension 1 – 28th September 2020 to 3rd January 2021

Minimum Pay Rates (to replace flat $1,500)

Tier 1 - $1200 per fortnight before tax - for eligible business participants and employees working 80 hours or more in the reference period.

Tier 2 - $750 per fortnight before tax – for all other eligible business participants and employees.

Extension 2 – 4th January 2021 to 28th March 2021

Minimum Pay Rates

Tier 1 - $1,000 per fortnight before tax - for eligible business participants and employees working 80 hours or more in the reference period.

Tier 2 - $650 per fortnight before tax – for all other eligible business participants and employees.

The reference period is the 28 day period prior to the most recent pay cycle that ended before 1st March 2020 or 1st July 2020 for employees, and the month of February 2020 for eligible business participants.

From 28th September, if your business is eligible for the extension please review your employee hours to determine which pay tier to use, notify the ATO using Single Touch Payroll, and ensure employees are paid the minimum pay rate.

Further details can you found here https://www.legislation.gov.au/Details/F2020L01165

or contact your accountant.