The second extension period for JobKeeper payments starts 4 January 2021. Payment rates for eligible employees will accordingly change.
Key dates for January
- Between 4 January 2021 and 28 January 2021 – complete the December business monthly declaration (this is an extension of two weeks past the usual due date of the 14th day of each month).
- By 31 January 2021 – new entities enrolling for JobKeeper will need to enrol and submit their decline in turnover to the ATO.
- 31 January 2021 – for JobKeeper fortnights 21 and 22 only (from 4 January 2021 and 18 January 2021 respectively), the ATO are allowing employers until 31 January 2021 to pay their employees (meet the wage condition).
The sooner you complete and submit your decline in turnover and business monthly declaration, the sooner the ATO can process your JobKeeper payment.
In recap: The decline in turnover test
To be eligible for the payments between 4 January 2021 to 28 March 2021, businesses and not-for-profits are required to demonstrate their actual GST turnover has significantly declined in December 2020 quarter (previously in June 2020, September 2020 and December 2020 quarters) compared to the December 2019 quarter.
The definition of a significant decline in turnover has not changed and are as follows:
- 30% fall in turnover for the entity with an aggregated turnover of $1 billion or less;
- 50% fall in turnover for the entity with an aggregated turnover of more than $1 billion; or
- 15% fall in turnover for ACNC-registered charities other than universities and schools.
The Commissioner of Taxation will have the discretion to set out alternative tests that would establish eligibility in the circumstances that it is not appropriate to compare actual turnover in a quarter in 2020 with actual turnover in a quarter in 2019, in line with the Commissioner’s existing discretion.
In recap: Who is an eligible employee?
Employees are eligible for Jobkeeper in the extension period if they are:
- Currently employed by an eligible employer;
- A full time, part-time, fixed term, or long term casual employee (and not a permanent employee of any other employer) of that employer at 1 July 2020;
- Aged 18 years or older at 1 July 2020 (if 16 or 17 can also qualify if independent and not undertaking full-time study); and
- An Australian resident, not in receipt of government parental leave or Dad and partner pay, or payment in accordance with workers compensation for total incapacity for work.
In recap: Payment rates
The payments rates between 4 January 2021 to 28 March 2021 are:
- $1,000 per fortnight for all eligible employees who, in the four weeks of pay periods before either 1 March 2020 or 1 July 2020, were working 20 hours or more a week on average;
- $1,000 per fortnight for eligible business participants who were actively engaged in the business for 20 hours or more per week on average;
- $650 per fortnight for other eligible employees and business participants.
The Commissioner of Taxation will have the discretion to set out alternative tests where an eligible employee or business participant’s hours were not usual in February and/or June 2020 reference period. The period with the higher number of hours worked is to be used for employees with 1 March 2020 eligibility.
Please email your service team member or call us on +61 3 9820 6400 for assistance and advice with regards to JobKeeper and other ways to manage your business through economic recovery.