Essential information on JobKeeper extension for September 2020

The extension of JobKeeper kicks in on 28 September 2020, and with it comes new eligibility criteria that must be satisfied.  

All businesses should familiarise themselves with the new criteria. The ATO is in the process of scrutinising claims to ensure that JobKeeper is fair and delivers financial assistance to who it was intended for.

Business Eligibility

From 28 September 2020, all businesses are required to reassess their eligibility for the JobKeeper extension with reference to their actual turnover.   This may mean that many businesses that originally qualified will not be eligible going forward. Conversely, if you previously did not qualify (or did not enrol for some reason), you can now enrol with the ATO and access JobKeeper for your eligible employees if you meet the new criteria.

To be eligible for JobKeeper from 28 September 2020 to 3 January 2021:

  • Businesses will need to demonstrate that they have met the relevant decline in turnover test (30% for businesses with an aggregate turnover of $1 billion or less). This is achieved by comparing actual turnover in the September 2020 Quarter (July, August and September 2020) with the September Quarter for 2019

To be eligible for JobKeeper from 4 January 2021 to 28 March 2021:

  • Businesses will need to reassess their eligibility in January; and
  • Demonstrate that they have met the relevant decline in turnover test by comparing its actual turnover in the December Quarter 2020 (October, November, and December 2020) with the December quarter in 2019 

If there are events or circumstances outside of the usual business setting that resulted in your relevant comparison period in 2019 not being appropriate, then alternative tests may apply.  If you wish to apply an alternative test, you can discuss this with the professional staff at Calibre Business Advisory.

Businesses should start preparing relevant calculations as soon as possible, as the relevant first fortnightly period to be assessed is from 28 September to 11 October. Otherwise, you risk having to pay back any JobKeeper payments you receive if actual turnover ends up not meeting the relevant decline in turnover test when BAS are finalised. 

Employee Eligibility

The reference date for assessing which employees are eligible for the JobKeeper payment is now 1 July 2020 (previously 1 March 2020).This means  more employees which did not previously meet the criteria on 1 March may now be eligible.

For example, casual employees that had not been employed on a regular and systematic basis for 12 months on 1 March 2020 may now qualify.

Further, new permanent employees employed between 1 March 2020 and 1 July 2020 will  now qualify.

Payment Rates

The payment rates have been reduced under the JobKeeper extension. From 28 September to 3 January, the JobKeeper rates will be as follows:

 $1,200 per fortnight
 If the eligible employee works 20
 hours or more a week on average in
 the refence period
  $750 per fortnightFor all other eligible employees

The reference period for employees regarding their hours worked to determine their tier of payment will be the two fortnightly pay periods prior to 1 March 2020 or 1 July 2020. The period with the higher number of hours is to be used for employees who were eligible as of 1 March 2020.

From 4 January to 28 March, the JobKeeper rates will be as follows:

   $1,000 per fortnight
 If the eligible employee works 20
 hours or more a week on average in
 the refence period
    $650 per fortnight  For all other eligible employees

Need help?

The JobKeeer rules are complex and the risk of consequences for making mistakes is high. Our expert team at Calibre Business Advisory are experienced in JobKeeper rules and eligibility. If you have any questions, do not hesitate to contact us on 0292612177.