Extension of JobKeeper Payments

The original JobKeeper payments are due to end on 27th September 2020. From 28th September businesses that meet the new eligibility test for an extended version of JobKeeper payments will be entitled to receive further payments under the Government incentive. If you are currently receiving JobKeeper, but will no longer be eligible for the extension please ensure you read the below warning regarding JobKeeper top up payments.
As we have previously experienced continual changes to JobKeeper we are mindful that there will likely be changes announced in the future. We urge everyone to follow us on Facebook as we will be posting updates if and when they are announced that will be relevant to you.
 
The Benefit:
From 28 September, 2020 to 3 January, 2021

  • $1,200 per fortnight for all eligible employees from 28 September, 2020 to 3 January, 2021 for those that worked more than 20 Hours per week.

  • $750 per fortnight for all eligible employees from 28 September, 2020 to 3 January, 2021 for those that worked less than 20 Hours per week. 

From 4 January, 2021 to 28 March, 2021

  • $1,000 per fortnight for all eligible employees from 4 January, 2021 to 28 March, 2021 for those that worked more than 20 Hours per week

  • $650 per fortnight for all eligible employees from 4 January, 2021 to 28 March, 2021 for those that worked less than 20 Hours per week

 
Who is eligible to receive the extended JobKeeper benefit:
From 28 September, 2020 to 3 January, 2021

  • For the first JobKeeper Payment extension period of 28 September, 2020 to 3 January, 2021, your business or not-for-profit will need to demonstrate your actual GST turnover has fallen in the September, 2020 quarter (July, August, September) relative to a comparable period (generally the corresponding quarter in 2019).
     

From 4 January, 2021 to 28 March, 2021

  • For the second JobKeeper Payment extension period of 4 January, 2021 to 28 March, 2021, your business or not-for-profit will need to demonstrate your actual GST turnover has fallen in the December quarter 2020 (October, November, December) relative to a comparable period (generally the corresponding quarters in 2019).
     

The decline in turnover test for both extension periods:
Businesses and not-for-profits that have experienced a decline in turnover of:

  • 50% for those with an aggregated turnover of more than $1 billion;

  • 30% for those with an aggregated turnover of $1 billion or less;

  • 15% for Australian Charities and Not for profits Commission-registered charities (excluding schools and universities).

The Commissioner of Taxation will have discretion to set out alternative tests that would establish eligibility in specific circumstances where it is not appropriate to compare your actual turnover in a quarter in 2020 with an actual turnover in a quarter in 2019, in line with the Commissioner’s existing discretion.
 
Who is an eligible employee: 
Eligible employees are still the same as they were in the original JobKeeper incentive, however the 1 March, 2020 date has been adjusted to 1 July, 2020 to allow additional employees, or those with changed circumstances meet the eligibility requirements. The requirements are as follows:  

  • They are currently employed by your business (including those stood down or re-hired.

  • They are either:

    • Permanent full-time or part-time employees (or another entity in your wholly owned group) who were employees as at (now) 1 July, 2020.

    • Casually employed by your business (or another entity in your wholly owned group) on a regular and systematic basis for at least 12 months as at  (now) 1 July, 2020 and not a permanent employee of any other employer.

  • They were at least 18 years of age (if they were 16 or 17 they can also qualify if they are independent or not undertaking full time study) as at (now) 1 July, 2020.

  • They were an Australian resident as at (now) 1 July, 2020 within the meaning of the Social Security Act 1991,

  • They were an Australian resident for the purpose of the Income Tax Assessment Act 1936 and the holder of a Subclass 444 (Special Category) visa as at  (now) 1 July 2020.

  • They were not in receipt of any of these payments during the JobKeeper fortnight:

    • Government parental leave or Dad and partner pay.

    • a payment in accordance with Australian worker compensation law for an individual’s total incapacity for work.

  • They have not agreed with any other employer to be nominated as an eligible employee for the JobKeeper payment.

  • They complete the JobKeeper employee nomination notice.

Only one employer is able to claim the JobKeeper Payment in respect of an employee.


Self- Employed?
For self-employed individuals, you will still remain eligible to receive the JobKeeper Payment where your business meets the JobKeeper extension relevant turnover test and you are not a permanent employee of another employer.
 
How to assess an eligible employee’s hours in order to determine the JobKeeper Payment for each eligible employee
For employees who were eligible employees at or prior to 1 March, 2020  
The hours worked (over or under 20 hours) to determine which tier of payment your employees will receive is worked out by the two fortnightly or four weekly pay periods prior to 1 March, 2020 or 1 July, 2020. The period with the higher number of hours is used for your employees who were eligible at 1 March, 2020.

For employees who became eligible employees after 1 March, 2020 until 1 July 2020.  
The hours worked (over or under 20 hours) to determine which tier of payment your employees will receive is worked out by the two fortnightly or four weekly pay periods prior to 1 July, 2020.
 
When do you receive the benefit:
The JobKeeper Payment will continue to be received from the ATO in arrears.
 
What are your obligations if you receive the JobKeeper Extension Payments:
Employers will continue to be required to make payments to employees equal to, or greater than, the amount of the JobKeeper Payment (before tax), based on the payment rate that applies to each employee (known as the wage condition).

Please note you will need to assess your eligibility for JobKeeper in advance of the September and December BAS deadlines in order to ensure you have paid your eligible employees in advance of receiving the JobKeeper payment in arrears from the ATO). The ATO will have discretion to extend the time a business has to pay employees in order to meet the wage condition, so that you have time to first confirm your eligibility for the JobKeeper Payment.

The JobKeeper Payment will continue to remain open to new recipients, provided they meet the eligibility requirements and the turnover tests that apply during the relevant JobKeeper Payment period.
 
WARNING – if you are no longer eligible for the new JobKeeper payment post 27th September, 2020

Please ensure if you are currently paying a JobKeeper ‘top-up’ payment to employees under the original incentive, that you cease making this additional payment once you have met the conditions of the original incentive and paid the minimum of $1,500 per fortnight to each eligible employee in line with the Government fortnights. 
For assistance with working determining your eligibility and ensuring you have enrolled and maintain enrolment for which your business is entitled to please contact our office.

Please contact our office on 8523 0999 if you need to discuss any of these items in further detail.

We would like to remind you all that we are here to help you and will continue to be throughout this challenging time.

Stay safe and look after each other.

Sources: https://treasury.gov.au/coronavirus/jobkeeper/extension

Regards,
The Team at Milanese & Co Accountants

Milanese & Co Accountants