JobKeeper 2.0 Is Here
September 24, 2020
The rules for JobKeeper extension have fianally been set. So how do they work?
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).
NOTE:
You can be eligible for JobKeeper extension 1 even if you were not originally eligible for JobKeeper.
If we are already completing JobKeeper reporting for you, we will automatically check if you pass the actual decline in turnover test once your September data is complete. You should attempt to finalise your coding for September as soon as possible after the end of the month.
If you are completing your own JobKeeper reporting or you think you may be eligible for JobKeeper for the first time, use our JobKeeper form to request our help.
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).
Tier 1 applies to employees who pass the 80-hour threshold. Employees who don't pass this, will only paid at the Tier 2 rate.
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).
NOTE:
You can be eligible for JobKeeper extension 2 even if you were not eligible for JobKeeper extension 1.
If we are already completing JobKeeper reporting for you, we will automatically check if you pass the actual decline in turnover test once your September data is complete. You should attempt to finalise your coding for September as soon as possible after the end of the month.
If you are completing your own JobKeeper reporting or you think you may be eligible for JobKeeper for the first time, use our JobKeeper form to request our help.
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).
Tier 1 applies to employees who pass the 80-hour threshold. Employees who don't pass this, will only paid at the Tier 2 rate.
Actual decline in turnover test
The actual decline in turnover test is a new concept for the JobKeeper extensions and is not the same as the original decline in turnover test. The differences are:
- it must be done for specific quarters only
- you must use actual sales made in the relevant quarter, not projected sales, when working out your GST turnover
- you must allocate sales to the relevant quarter in the same way you would report those sales to a particular business activity statement if you were registered for GST.
The 80-hour threshold
The 80-hour threshold is another new concept for the JobKeeper extensions. Your employee will satisfy the 80-hour threshold if, in their 28-day reference period, the total of the following is 80 hours or more:
- actual hours they worked
- hours they were on paid leave
- hours they were paid for absence on a public holiday.
If your eligible employee satisfies the 80-hour threshold, you can claim the tier 1 (higher) payment rate for them. If they do not meet the 80-hour threshold, you can only claim the tier 2 (lower) payment rate for them.
There are different options for the 28-day reference period that you must use to test whether your employee satisfies the 80-hour threshold.
Your 28-day reference period or periods are based on when your pay cycle ends and therefore won’t be the same for all employers or employees.
Use either:
- the pre-March period which is the 28 days which finish on the last day of the last pay cycle that ended before 1 March 2020, or
- the pre-July period which is the 28 days which finish on the last day of the last pay cycle that ended before 1 July 2020.
Your pay cycle for an employee may not be the same as the period between the dates you actually pay them. For example, the amount you pay an employee each Friday may be for the hours they worked in a week ended on the previous Wednesday. In this case your employee's pay cycle is the week ended on Wednesday.
Your employee only needs to satisfy the 80-hour threshold in one of the 28-day reference periods. If they satisfy it in one reference period, you do not need to determine if they satisfy it in other reference periods.
If your pay cycle is longer than 28-days for your employees (for example monthly), you will need to perform a pro-rata calculation.
If you have a monthly pay cycle for your employees, your employees will meet the 80-hour threshold if their hours worked, hours of paid leave and hours of paid absence on public holidays are at least the following:
| Days in monthly pay cycle | Hours in monthly pay cycle |
|---|---|
| 29 | 82.86 |
| 30 | 85.72 |
| 31 | 88.58 |
If you have any further questions about JobKeeper, please use our JobKeeper form to request our help.
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