With the first round of JobKeeper coming to an end this September, the ATO has released updated information on the JobKeeper extensions commencing October 2020 (extension one) and January 2021 (extension two).
What’s stayed the same?
- Employers will still need to meet a 30% decline in the turnover test (further information below)
- For employees to be eligible, they will need to meet the same criteria found here
- Business participants will also continue to be eligible and more information on who can be considered a business participant can be found here.
What’s changed?
-
- The basic test will now be based on fixed periods being:
- Extension one: 30% decline in turnover from September 2019 quarter to September 2020 quarter;
- Extension two: 30% decline in turnover from December 2019 quarter to December 2020 quarter.
- The alternative test will only be available in limited circumstances and we are still waiting for the ATO to provide more information on this.
- Payments will be tiered depending on the average number of hours worked by the employee:
- The basic test will now be based on fixed periods being:
| Extension | Dated | Amount (if 20 or over hours worked per week) |
Amount (if under 20 hours worked per week) |
|---|---|---|---|
| Extension one | 28 September – 3 January 2021 |
$1,200 | $750 |
| Extension Two | 4 January – 28 March 2021 |
$1,000 | $650 |
Business participant payments will also be tiered dependant on the number of hours the individual actively engaged in the business:
| Extension | Dated | Amount (if 80 or more hours worked in months of February or June 2020) |
Amount (if less than 80 hours worked in months of February or June 2020) |
|---|---|---|---|
| Extension one | 28 September – 3 January 2021 |
$1,200 | $750 |
| Extension Two | 4 January – 28 March 2021 |
$1,000 | $650 |
We are still waiting for more information to be released on how business participants are required to evidence the hours worked in the business and will provide updates on this in due course.
What you need to do:
- If you are already enrolled in JobKeeper, you will not need to enrol again for the extension. You will, however, need to make sure you meet the decline in the turnover test before making any claims.
- Work our which tier rate applies to your eligible employees and/or business participants.
- Notify your eligible employees, business participant and the ATO of the relevant tiers for each individual.
- Ensure your eligible employees are paid the minimum amounts as set out in the above tables.
The ATO has allowed until 31 October 2020 to meet the above criteria for eligibility in extension one of JobKeeper.
For our clients already on JobKeeper, we will contact you separately on the next steps.
