The extension of the JobKeeper wage subsidy scheme to 28 March 2021 has now been legislated. Below is a general snapshot:
(Please note there is much detail to the new legislation and not all of it has been outlined below – please discuss your specific circumstances with your Adviser)

Extension Dates

The JobKeeper scheme has been extended as follows:

  • Extension 1 – 28 September 2020 to 3 January 2021
  • Extension 2 – 4 January 2021 to 28 March 2021

Payment Rates 

There are now two payment tiers for each extension period:

 

 

 

 

 

The two-tier payment system will apply to each employee based on their total working hours in the applicable 28 day ‘reference period’ (being 2nd – 29th February 2020 or for some employees 3rd – 30th June 2020).

  • Tier 1: – 80 hrs or more (inc paid leave) worked during the reference period – e.g. equivalent to 20hrs per week for 4 weeks
  • Tier 2: – Less than 80 hours (inc paid leave) worked during the reference period

Eligibility
The same decline in turnover threshold applies being 30% for most businesses or 15% for not for profits, however the new ‘actual decline in turnover test’ will operate as follows:

  • Extension 1 – Compare September 2020 Quarter with September 2019 Quarter
  • Extension 2 – Compare December 2020 Quarter with December 2019 Quarter

We note the above tests are based on actual turnover (not projected) and the test period is for the quarter with no option to choose monthly.

What you need to do?

Step 1: Assess your eligibility for JobKeeper 2.0.The business does not need to enrol or re-enrol to receive JobKeeper.  The business will simply continue to lodge monthly JobKeeper business declarations.
 
Step 2: Review all your employees and determine the applicable tier rates for each.  Employers are required to advise employees of the change in payment rate within seven days of notifying the ATO (via an STP lodgement).  There is no requirement to complete new employee nomination forms.

Step 3: Ensure you make the appropriate tier payments to eligible employees within the correct JobKeeper payroll fortnights.

All existing JobKeeper rules remain in place including satisfying the wage condition i.e. payment of the minimum wage must have been made to the employee by the end of the JobKeeper payroll fortnight.

More Details to Come
There is still more detail to come on the administration of the JobKeeper Rules – ATO guidance is expected shortly.
Software programs will also be updating their systems to accommodate the above changes.

Questions?

We will be reaching out to our clients to discuss their eligibility for JobKeeper 2.0.  In the meantime, if you have any specific questions, please contact your Adviser.