JobKeeper 2.0 Jan to March 2021
December declaration reminder
Quick reminder about JobKeeper for the month of December - there were actually three fortnights for the month of December, and the third one actually finished on the 3rd of January . So if you are eligible for the first extension of JobKeeper 2.0, the last month to claim for is December.
To be eligible to receive JobKeeper payments for fortnights 18, 19 and 20 (23 November 2020 to 3 January 2021) you must be enrolled in the first JobKeeper extension and you will need to re-confirm the business participant details and your eligible employees.
We've also got an extension this month - instead of normally being the 14th of each month (because of Christmas) the ATO have given you until the 28th of January to lodge the December 2020 declaration.
JOBKEEPER 2.0 EXTENSION 2: January to March quarter
We have now entered the last extension phase of JobKeeper 2.0 which covers 4 January 2021 to 28 March 2021. It's a separate turnover test and you need to look at your December quarter in 2020 versus your December quarter in 2019. That's on a first pass, but you may have to look at alternative tests depending on your business.
You 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 remains the same as 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 and universities) – 15%.
You can be eligible for JobKeeper extension 2 even if you were not eligible for JobKeeper extension 1.
PAYMENT RATES
The rate of the JobKeeper 2.0 extension 2 payment 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 2 rates:
Tier 1 rate: $1,000 per fortnight (before tax)
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: $650 per fortnight (before tax)
Any other eligible employees and eligible business participants.
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.
WHAT HAS NOT CHANGED
To claim for fortnights in the JobKeeper 2.0:
You don't need to re-enrol for the JobKeeper extension if you are already enrolled for JobKeeper for fortnights before 28 September.
You don’t need to reassess employee eligibility or ask employees to agree to be nominated by you as their eligible employer if you are already claiming for them before 28 September.
You don't need to meet any further requirements if you are claiming for an eligible business participant, other than those that applied from the start of JobKeeper relating to:
holding an ABN, and
declaring assessable income and supplies.
WANT SOME HELP TO ASSESS YOUR CLAIM?
We have helped our clients claim multiple millions of dollars of JobKeeper payments since April 2020. We understand the eligibility criteria and the compliance involved to ensure a smooth claim and receipt of funds. We do charge for our time to assess eligibility and we do charge a small fee to lodge the monthly declaration however our fees are only a small fraction of the amount our clients have received from the ATO.
As always, please reach out if you have any questions.