JobKeeper 1.1 and 2.0 Update
Here is the latest JobKeeper 1.1 and 2.0 Update
JobKeeper 1.0 will continue until 27 September 2020, however there are some key changes to assessing staff eligibility for the August and September JobKeeper 1.1 payments as follows:
- Employees eligibility for JobKeeper Payments can now be assessed from 1 July 2020, rather than 1 March 2020:
- Full-time and part time employees hired between 1 March and 1 July 2020 are now eligible for nomination for JobKeeper payments
- Long-term casuals employed from 1 March to 1 July 2019 are now eligible for nomination for JobKeeper payments.
- HOWEVER, employees can still only be nominated by one employer at a time.
- Employers have until 31 August to enrol employees who meet the new wage conditions under the 1st July test for:
- Fortnight 10 – commencing 3 August and
- Fortnight 11 – commencing 17 August
- Fortnight 12 – commencing 31 August
- Businesses can claim reimbursement for all employees, including newly nominated employees, in their August and September declarations. The same tests for eligibility apply to this amendment as applied at 1 March 2020.
- If a business or not-for-profit does not meet the additional turnover tests for the extension period, this does not affect their eligibility for pay periods prior to 28 September 2020.
Employee Nomination forms are available from the ATO website or you can ask your bookkeeper to provide you with a PDF copy. Newly eligible staff MUST complete an authority declaration and return it to you.
NB If you have staff who missed out on being included in JobKeeper due to their start date being after 1 March 2020 they may now be eligible. If in doubt, please clarify with your bookkeeper or check with our office.
JobKeeper 2.0 is the six-month extension from 28 September to 28 March 2021
- From 28 September 2020 to 3 January 2021, the JobKeeper Payment rates will be:
- 1,200 per fortnight for staff who worked 20+hrs per week in February 2020
- $750 per fortnight for staff who work less than 20 hrs per week in February 2020
- From 4 January 2021 to 28 March 2021, the JobKeeper Payment rates will be:
- $1,000 per fortnight for staff who worked 20+hrs per week in February 2020
- $650 per fortnight for staff who worked less than 20 hrs per week in February 2020
Eligibility for JobKeeper 2.0 is dependent on a 30% decline in turnover for small business and 15% for charities, compared to the same quarter last year, but will be based on actual figures, no forecasting allowed.
- Eligibility for JobKeeper payments for the period 28 September 2020 to 3 January 2021, will be determined by comparing Actual Turnover in QTR1 Jul-Sep 20, to Actual Turnover in QTR1 Jul-Sep 19;
- Eligibility for JobKeeper payments for the period 4 January 2021 to 28 March 2021, will be determined by comparing Actual Turnover in QTR2 Oct-Dec 20, to Actual Turnover in QTR1 Oct-Dec19;
JobKeeper Payments will continue to remain open to new recipients, provided they meet the existing eligibility requirements and the additional turnover tests during the extension period.
The “all in” rule still applies. If you have any employees who, under the new criteria, are eligible for JobKeeper, they must be given the opportunity to nominate for JobKeeper payments.
Businesses and not-for-profits will be required to nominate which payment rate they are claiming for each of their eligible employees (or business participants).
Employers will continue to be required to make payments to employees equal to, or greater than, the amount of the JobKeeper Payment (before tax), based on the payment rate that applies to each employee. This is referred to as the wage condition.
If you need help, or further information about how the changes to JobKeeper effect your business, please contact our office on 02 9560 2688.
The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.