Jobkeeper v2
Legislation for Jobkeeper v2 was registered on 15 September with supplementary information to follow.
All employers wanting to claim JobKeeper payments from 28 September 2020 need to reassess their eligibility again and prove that their turnover declined based on actual figures.
Some businesses which didn’t qualify for the original JobKeeper payments may qualify for the new JobKeeper payments.
Up until 27 September 2020
Nothing changes provided the original tests were passed and wages continue to be paid.
28 September 2020 to 3 January 2021
Business Eligibility
Businesses wishing to receive JobKeeper need to reassess their eligibility. The business needs to demonstrate how their ACTUAL GST turnover (as reported in the Business Activity Statement) for the September 2020 quarter decreased by the relevant amount when compared to the corresponding September 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 payment rate will reduce from $1,500 per fortnight to $1,200 per fortnight for eligible employees and eligible business participants who work more than 20 hours per week, and to $750 per fortnight for eligible employees and eligible business participants who work less than 20 hours per week.
4 January 2021 to 28 March 2021
Business Eligibility
Businesses wishing to receive JobKeeper need to reassess their eligibility. They need to demonstrate that their ACTUAL GST turnover (as reported in the Business Activity Statement) for the December 2020 quarter decreased by the relevant amount when compared to the corresponding December 2019 quarter.
Payment Rates
The payment rate will reduce to $1,000 per fortnight for eligible employees and eligible business participants who work more than 20 hours per week, and to $650 per fortnight for eligible employees and eligible business participants who work less than 20 hours per week.
Employee Eligibility
The existing employee eligibility requirements have not changed exceptfor 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.
Business Participation Entitlement
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 of one JobKeeper payment per fortnight for one eligible business participant applies. 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.
The legislation has complex elements. Feel free to contact us if you’d like assistance to apply the tests to your situation.
End of year checklists
Feel free to use the following checklists to assist with your end of year document compilation:
Newsletter
Below is a list of the short articles in the newsletter:
- Increase to car expense deduction rate
- Managing employee morale
- What to consider before opening another business location
- Can you access the small business tax offset?
- Successful partnerships
- What to do when you can’t pay your tax on time