JobKeeper 2.0 – It’s time to plan

In order to be eligible for JobKeeper after 28^th of September 2020, your business will need to pass a NEW turnover test.

JobKeeper has been extended for the December 2020 and March 2021 quarters. To receive this second wave of JobKeeper payments (commonly called JobKeeper 2.0) your business will need to pass new turnover tests. It is also important to note that being eligible for December 2020 does not mean you will automatically be eligible for March 2021.

To qualify for JobKeeper in the December 2020 quarter:

• Businesses will need to demonstrate a decline of 30% in ‘Actual GST Turnover’ in the September 2020 quarter compared with the September 2019 Quarter

To qualify for JobKeeper in the March 2021 quarter:

• Businesses will need to demonstrate a decline of 30% in ‘Actual GST Turnover’ in both the September 2020 and December 2020 quarters compared to the same quarters in 2019.

Please note that your JobKeeper Refunds and other Government grants and Subsidies do not form part of your ‘Actual GST Turnover.’

Will Your Business Be Eligible?

This week, Suntax are running a pre-planning project to help businesses understand if they will be eligible for JobKeeper 2.0. We will review your turnover based on all available turnover tests and will provide you with a report of your maximum ‘Actual GST Turnover’ limit for September 2020. The cost of this review is $165 including GST. If you would like your business to be part of this JobKeeper 2.0 pre-planning assessment, please click here to register and we will provide you with a written assessment of our findings.

How much will the new JobKeeper payments be?

From 28 September 2020, the flat rate of JobKeeper will be replaced with a two-tiered system based on the employee’s employment hours:

1. Employees who worked for 80 hours or more over the four week period before 1 March 2020 OR 1 July 2020 will be entitled to the full rate
2. Employees who worked less than 80 hours over the four week period before 1 March 2020 OR 1 July 2020 will receive the reduced rate

Period of JobKeeper Payments

• 28 September 2020 to 3 January 2021
  Full rate: $1,200
  Reduced rate: $750
• 4 January 2021 to 28 March 2021
  Full rate: $1,000
  Reduced rate: $650

Important

For many businesses registered for GST, the reduction in turnover will be matched to your ‘total sales’ reported on your BAS’s minus GST payable. Therefore it is important that your BAS lodgments are completely up to date.

The ATO have also indicated that they may accept alternate (NON BAS) calculations of the ‘Actual GST Turnover’. This will need to be a well documented assessment that is provided to the ATO.

How Do I Enrol?

If you are already enrolled for JobKeeper for any fortnights before 28 September you DO NOT need to re enrol.

You don’t need to re-assess employee eligibility for your employees if they are already nominated as a JobKeeper recipient before 28 September 2020.

What Do You Need To Do Now?

1. Assess Your Eligibility For JobKeeper 2.0 (post 28th of September 2020) by using the turnover test discussed above.   Remember if you are unsure, you can ask us to do this for you by clicking here.
2. If your business is eligible, make note of which employees qualify for the new full rate or reduced rate of JobKeeper by using the table above.
3. If your business is eligible for JobKeeper 2.0, the next step is to ensure all eligible employees are being paid the correct JobKeeper rate for any pay run after 28th of September 2020.

As always, we are here to help guide you through these ever changing and complex times.

Your Suntax Team