JobKeeper Extension 1
You will need to show that your actual GST turnover has declined by at least 30% (for an aggregated turnover of $1 billion or less) in the September 2020 quarter (the months of July, August and September) relative to a comparable period (generally the corresponding quarter in 2019).
If you are registered for GST you will need to work out your GST turnover based on the figures used to calculate your Business Activity Statement.
Please note previously you had the option of using the Cash or Accruals method when determining your turnover if you were registered on a cash basis for GST purposes. Now, you must use the same method that your Business Activity Statement is based on.
If you are not registered for GST, you can use your business records that show when you received payments for your sales or when you issued invoices to work out your current GST turnover.
The rates of payment will change
The rate of the JobKeeper payment in each extension period will depend on the number of hours:
- an eligible employee works, or
- an eligible business participant is actively engaged in the business.
Further, it will be split into two rates.
Tier rate 1 ($1,200 per fortnight – before tax) applies to:
- eligible employees who worked for 80 hours or more in the four weeks of pay periods (28 days) before either 1 March 2020 or 1 July 2020, and
- eligible business participants who were actively engaged in the business for 80 hours or more in February and provide a declaration to that effect.
Tier rate 2 ($750 per fortnight – before tax) applies to:
- any other eligible employees and eligible business participants who worked less than 80 hours in the four weeks of pay periods (28days) before either 1 March 2020 or 1 July 2020.
The rate of the JobKeeper payment is also different for each extension period.
Employers and businesses will need to nominate the rate they are claiming for each eligible employee and/or eligible business participant.
What you need to do
From 28 September 2020, you must do all of the following:
- work out if the tier 1 or tier 2 rate applies to each of your eligible employees and/or eligible business participants,
- notify the ATO and your eligible employees and/or eligible business participants and/or eligible religious practitioners what payment rate applies to them, and
- during JobKeeper extension 1 – if you pay employees, ensure that your eligible employees are paid at least
- $1,200 per fortnight for tier 1 employees
- $750 per fortnight for tier 2 employees
For the JobKeeper fortnights starting 28 September 2020 and 12 October 2020 only, the ATO allow employers until 31 October 2020 to meet the wage condition for all employees included in the JobKeeper scheme.
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.
New JobKeeper participants
The JobKeeper scheme will remain open to new participants, provided they meet the eligibility requirements for the relevant period.
Further information can be found on the Australian Government Treasury site at:
- https://treasury.gov.au/coronavirus/jobkeeper or the ATO website on
- https://www.ato.gov.au/General/JobKeeper-Payment/JobKeeper-extension-announcement/
If you think you might qualify for the JobKeeper extension 1 or have any questions on your eligibility, the Team at Rawson Verco Need are ready to assist you to understand how these changes are relevant to your circumstances and to help you navigate through these challenging times. Please phone our office on 8400-6000 for further information.