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JobKeeper extension

Extension from 28 September 2020

The JobKeeper scheme has been extended from 28 September 2020 until 28 March 2021.

There are two separate extension periods. For each extension period, an additional actual decline in turnover test applies and the rate of the JobKeeper payment is different.

The extension periods are:

  • Extension 1: from 28 September 2020 to 3 January 2021

  • Extension 2: from 4 January 2021 to 28 March 2021

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.

It will be split into two rates.

Tier 1 rate- This rate applies to:

  • eligible employees who worked for 80 hours or more in the four weeks of pay periods 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 2 rate- This rate applies to:

  • any other eligible employees and eligible business participants.

Employers and businesses will need to nominate the rate they are claiming for each eligible employee and/or eligible business participant.

The rules for eligible religious practitioners are similar to those for eligible business participants, with the payment rate depending on the hours spent doing activities in pursuit of their vocation in February.

Alternative tests for determining the payment rates that apply to an eligible employee, eligible business participant or eligible religious practitioner may be available in some circumstances.

The rate of the JobKeeper payment is also different for each extension period.

JobKeeper extension 1

This extension period will run from 28 September 2020 to 3 January 2021.

You will need to show that your actual GST turnover has declined in the September 2020 quarter relative to a comparable period (generally the corresponding quarter in 2019). See the actual decline in turnover test.

You also need to have satisfied the original decline in turnover test. However, if you:

  • were entitled to receive JobKeeper for fortnights before 28 September, you have already satisfied the original decline in turnover test

  • are enrolling in JobKeeper for the first time from 28 September 2020, if you satisfy the actual decline in turnover test, you will also satisfy the original decline in turnover test (except for certain universities). You can enrol on that basis.

The rates of the JobKeeper payment in this extension period are:

  • Tier 1: $1,200 per fortnight (before tax)

  • Tier 2: $750 per fortnight (before tax).

JobKeeper extension 2

This extension period will run from 4 January 2021 to 28 March 2021.

You will need to show that your actual GST turnover has declined in the December 2020 quarter relative to a comparable period (generally the corresponding quarter in 2019). See the actual decline in turnover test.

You also need to have satisfied the original decline in turnover test. However, if you:

  • were entitled to receive JobKeeper for fortnights before 28 September, you have already satisfied the original decline in turnover test

  • are enrolling in JobKeeper for the first time from 28 September 2020, if you satisfy the actual decline in turnover test, you will also satisfy the original decline in turnover test (except for certain universities). You can enrol on that basis.

You can be eligible for JobKeeper extension 2 even if you were not eligible for JobKeeper extension 1.

The rates of the JobKeeper payment in this extension period are:

  • Tier 1: $1,000 per fortnight (before tax)

  • Tier 2: $650 per fortnight (before tax).

Businesses or not-for-profits

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 and/or eligible religious practitioners

  • notify us and your eligible employees and/or eligible business participants and/or eligible religious practitioners what payment rate applies to them

  • during JobKeeper extension 1 – ensure your eligible employees are paid at least

  • $1,200 per fortnight for tier 1 employees

  • $750 per fortnight for tier 2 employees

  • during JobKeeper extension 2 – ensure your eligible employees are paid at least

  • $1,000 per fortnight for tier 1 employees

  • $650 per fortnight for tier 2 employees.

For your eligible religious practitioners, you must provide certain benefits to them in the fortnight.

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.


Decline in turnover


The actual decline in turnover test is satisfied for JobKeeper extension 1 when your current GST turnover for the quarter ending 30 September 2020 (July, August and September) has declined by the specified shortfall percentage (30%, 50% or 15%) in comparison to your current GST turnover for the quarter ending 30 September 2019.

The actual decline in turnover test is satisfied for JobKeeper extension 2 when your current GST turnover for the quarter ending 31 December 2020 (October, November and December) has declined by the specified shortfall percentage (30%, 50% or 15%) in comparison to your current GST turnover for the quarter ending 31 December 2019.


What is different


Unlike when you calculated the original decline in turnover test, you do not use your projected GST turnover for the relevant quarter being tested. You use your current GST turnover.

To work out which supplies you have made in the turnover test period, you must use the accounting basis you used for GST reporting purposes. Depending on your circumstances, you could use a cash basis or a non-cash basis.

A GST accounting basis will apply to allocate supplies to a test period regardless of whether:

  • you are registered for GST

  • the supply was a taxable supply, or

  • you report GST on a monthly or quarterly basis.

For many businesses registered for GST, this calculation will match the ‘total sales’ reported at G1 on your BAS minus GST payable (1A), where applicable.

If you are not registered for GST, you will work out your turnover using either the GST cash or non-cash basis of accounting.

You can provide additional turnover information to demonstrate that you satisfy the actual decline in turnover test for the September quarter from the start of October onwards. You must provide it before you complete your November monthly declaration.




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