JobKeeper 2.0 – What has changed
The Federal Government released its key updates for JobKeeper V2 in early October 2020.
This is to update you about what you need to do to continue to claim the JobKeeper payments or start to receive JobKeeper payments from 28 September 2020.
JOBKEEPER V2 PAYMENT OVERVIEW
All employers wanting to claim JobKeeper payments from 28 September 2020 will need to reassess their eligibility again and prove that their turnover has declined based on actual figures.
Some businesses that did not qualify for the original JobKeeper payments may find that they now qualify for the new JobKeeper payments.
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
Business Eligibility
All businesses wanting to receive JobKeeper will need to reassess their eligibility. You will need to demonstrate that your ACTUAL GST turnover (as reported on your Business Activity Statement) for the September 2020 quarter has decreased by the relevant amount when compared to the corresponding September 2019 quarter, and then similarly for the December 2020 quarter when compared with the 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%.
Payment Rates
The rate of the JobKeeper V2 payment in each extension 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 Rates:
Applies to:
eligible employees who worked 80 hours or more in the 4 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 2020 and provide a declaration to that effect
$1,200 per fortnight: 28 Sep 2020 to 3 Jan 2021
$1,000 per fortnight: 4 Jan 2021 to 28 Mar 2021
Tier 2 Rates:
Applies to any other eligible employees and eligible business participants
$750 per fortnight: 28 Sep 2020 to 3 Jan 2021
$650 per fortnight: 4 Jan 2021 to 28 Mar 2021
Employers and businesses will need to nominate the rate they are claiming for each eligible employee or eligible business participant.
Eligible Employees
The existing employee eligibility requirements have not changed EXCEPT for the eligibility date of 1 July 2020 (previously 1 March 2020), and are as follows:
currently employed and were employed by the employer at 1 July 2020;
full time, part time, or long term casuals;
at least 18 years of age or aged 16 to 17 years and independent or not undertaking full time study;
an Australian resident; and
not in receipt of a JobKeeper payment from another employer.
Eligible Business Participants
Sole traders and some other entities (such as partnerships, trusts or companies) may be entitled to the JobKeeper Payment scheme under the business participation entitlement. A limit applies of one JobKeeper payment per fortnight for one eligible business participant. Sole traders, one partner in a partnership, one beneficiary of a trust, and one director or shareholder of a company may be regarded as an eligible business participant.
WHAT HAS NOT CHANGED
To claim for fortnights in the JobKeeper extension 1 or 2:
You don’t need to re-enrol for the JobKeeper extension if you are already enrolled for JobKeeper for fortnights before 28 September 2020.
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 2020.
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:
o holding an ABN, and
o declaring assessable income and supplies.
OBLIGATIONS + RISKS FOR YOU
If a wrong claim is made or if the ATO in the future decides that you were ineligible to receive the JobKeeper payment, the ATO will require you to repay them any JobKeeper payments that you have received plus penalties and interest.
The key risks to you as the employer include:
The employer certifies the facts provided to the ATO and the JobKeeper claim made.
The employer receives significant JobKeeper payments over a 6 month period.
If the employer makes a mistake and is found to be ineligible by the ATO (for example, its turnover is not down by 30%), then they
may have to repay all amounts received back to the ATO.An employee ceases to be eligible if they cease employment during the life of this JobKeeper scheme.
Also, the ATO requires you to keep all records in relation to your JobKeeper claim for a 5 year period.
OUR WORK PLAN TO ASSIST YOU
The ATO has specific actions that must take place within tight timeframes for an employer to receive the JobKeeper payments.
These are the actions that we can assist you with:
Employer Eligibility Assessment – Extension 1 and Extension 2
Document the fall in turnover % for 2020 quarter compared to 2019 quarter in case of future ATO audit.
Payment Rate Assessment
Work out if the Tier 1 or Tier 2 rate applies to each of your eligible employees and/or eligible business participants.
Notifying the ATO and your eligible employees and/or eligible business participants what payment rates applies to them.
Ongoing Work
During each JobKeeper extension, ensuring your eligible employees are paid the right rate according to their tier.
Ensure your payroll software is correctly set up to record JobKeeper “top up” payments if needed.
Monthly JobKeeper Declaration Report – DUE BY 7TH OF EACH MONTH
Using ATO online services, report to the ATO using their Monthly JobKeeper Declaration Report on the following:
o Reconfirm that your reported eligible employees have not changed
o Input required ATO declaration items
o Notify if any eligible employees have changed or left your employment
Should you have any questions regarding the above, please don’t hesitate to reach out to us.