JobKeeper 2.0 - simplified
With only 2 JobKeeper fortnights left before businesses and not-for-profits are required to re-assess their eligibility and ensure they meet the wage condition - don't leave it too late to find out what you need to do!
For the period 28 September 2020 to 03 January 2021 the payments will be reduced to:
$1,200 per fortnight for an employee who worked on average 20 or more hours in the 4 weeks prior to 01 March or 01 July
$1,200 per fortnight for eligible business participants actively engaged in the business for 20 or more hours on average per week
$750 per fortnight for other eligible employees and business participants
For the period 04 January 2021 to 28 March 2021 the payment rates will be further reduced to:
$1,000 per fortnight for an employee who worked on average 20 or more hours in the 4 weeks prior to 01 March or 01 July
$1,000 per fortnight for eligible business participants actively engaged in the business for 20 or more hours on average per week
$650 per fortnight for other eligible employees and business participants
Business & not-for-profits will be required to nominate which payment rate they are claiming for each of their employees and/or business participants.
New eligibility test
To be eligible for each of the new JobKeeper periods businesses & not-for-profits will be required to reassess their eligibility.
To be eligible for the payments from 28 September 2020 to 03 January 2021 businesses & not-for-profits will need to show a 30% decline in Actual GST turnover (50% for those with aggregated turnover more than $1 billion and 15% for Australian Charities and not-for-profits) for the the September 2020 Quarter in comparison with the same period last year.
To be eligible for the payments from 04 January 2021 to 28 March 2021 businesses & not-for-profits will need to show a 30% decline in Actual GST turnover (50% for those with aggregated turnover more than $1 billion) for the the December 2020 Quarter in comparison with the same period last year.
These tests differ to the initial JobKeeper decline in turnover test which was based on a reduction of projected GST turnover.
Employees will be eligible if they:
are currently employed by an eligible employer (including if you were stood down or rehired)
work for the eligible employer (or another entity in their wholly-owned group) either:
a full-time, part-time or fixed-term employee at 1 July 2020; or
a long-term casual employee (employed on a regular and systematic basis for at least 12 months) as at 1 July 2020 and not a permanent employee of any other employer.
were aged 18 years or older at 1 July 2020 (if you were 16 or 17 you can also qualify if you are independent or not undertaking full time study).
an Australian resident (within the meaning of the Social Security Act 1991); or
an Australian resident for the purpose of the Income Tax Assessment Act 1936 and the holder of a Subclass 444 (Special Category) visa as at 1 July 2020.
were not in receipt of any of these payments during the JobKeeper fortnight:
government parental leave or Dad and partner pay under the Paid Parental Leave Act 2010; or
a payment in accordance with Australian worker compensation law for an individual's total incapacity for work.
Only one employer can claim the JobKeeper Payment in respect of an employee.
Employers will continue to be required to make payments to their employees an amount equal to or greater than the amount of the JobKeeper payment (before tax), for that particular JobKeeper fortnight.
To ensure you remain eligible you cannot pay your employees less than JobKeeper payment amount in each fortnight and keep the difference. You will not be eligible for the JobKeeper payment if you pay your nominated employee less than JobKeeper payment amount in each fortnight.
For further information or assistance in determining your business or employee eligibility, contact Nicole at our office.