With businesses now returning to work for 2021 following the Festive/New Year holiday period, a reminder that JobKeeper 2.0 - Phase Two extensions have now taken effect from 4th January 2021 and will run for the period until 28th March 2021.
Under the final instalment period conditions, employees and eligible business participants meeting the Tier 1 working conditions will receive a $1,000 per fortnight payment, whilst all other employees and eligible business participants will receive a $650 per fortnight.
|Tier||JobKeeper Payment ($)||Guideline Criteria|
|Tier 1||$1,000 per fortnight||All eligible employees who were working 80 hours or more in the four weeks of pay period either 1 March 2020 or 1 July 2020; and for eligible business participants who were actively engaged in the business for 80 hours or more in the month of February 2020.|
|Tier 2||$650 per fortnight||All other eligible employees and business participants|
Determining your Eligibility to Claim JobKeeper 2.0 - Phase Two
To be eligible to claim for the Phase Two Extension program, employers will need to demonstrate that your actual GST turnover (as reported on your Business Activity Statement) for the December 2020 quarter has decreased by the relevant amount when compared to the corresponding December 2019 quarter.
The 'Decline in Turnover' test determination remains the same under the Phase Two Extension, with the existing rules being:
- Entities with turnover greater than $1 billion - 50%;
- Entities with turnover less than $1 billion - 30%;
- ACNC Registered Charities (excluding schools & universities) - 15%
|Existing Eligible Employers||New Entity Enrolments|
|For existing eligible employers, you must submit a new 'Decline in Turnover' form before completing the Business Monthly Declaration from 1 February 2021.||New entities enrolling for JobKeeper 2.0 must do so before 31 January 2021.|
Additionally, the ATO is also allowing eligible entities to satisfy the Wage Condition requirement (make payments to eligible employees) for Fortnights 21 & 22 (commencing 4th January and 18th January 2021) by 31 January 2021.
Determining your Eligible Employees
As in effect from 3rd August 2020, an employee can be eligible for the program if the meet the requirements as at 1 July 2020. The eligibility requirements are as follows:
- Currently employed & were employed by the employer at 1 July 2020;
- Full-time, Part-time, Fixed-term, or Long-term casual;
- At least 18 years of age, or aged 16-17 and independent or not undertaking full-time study;
- An Australian resident; and
- Not in receipt of a JobKeeper payment from another employer
No Longer Qualifying for JobKeeper 2.0 - Extension Two
If you were previously in receipt of JobKeeper and no longer qualify, you do not need to cancel your enrolment, however, you will need to:
- Change the status for all employees and the business participant through your STP-enabled software, or via the Business Portal;
- Notify all employees and the business participant that you are no longer receiving JobKeeper payments.
For More Information
For more information on the JobKeeper 2.0 - Phase Two Extension which has now taken effect from 4th January 2021, and how this impacts you and your business, please contact your Archer Gowland Redshaw adviser on (07) 3002 2699 or (07) 3221 4004.