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.
There are two types of eligible entities:
- Based on a business with employees
- Based on a business no employees but has a business participant
Eligibility Criteria – Employers
- Carried on a business on 1 March
- Employed at least one eligible employee on 1 March or 1 July
- Employees are currently employed for the fortnights you claim for
- The business has experienced a significant fall in turnover
Eligibility Criteria – non-employer entities
- Carried on a business on 1 March
- The business has experienced a significant fall in turnover
- You are actively engaged in the business
- You are not an employee (other than a casual employee) of another entity
- You have not previously given another entity a JobKeeper nomination form
Up until 27 September 2020
Nothing changes. If your business and your employees have passed the original eligibility tests for JobKeeper and you have paid the required wages amounts each JobKeeper fortnight, then you can continue to claim JobKeeper up until 27 September 2020.
28 September 2020 to 3 January 2021
Business Eligibility
All businesses wanting to receive JobKeeper will need to reassess their eligibility. Based on the Treasury Fact Sheet, 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.
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 be reduced 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
All businesses wanting to receive JobKeeper will need to again reassess their eligibility. Based on the Treasury Fact Sheet, you will need to demonstrate that your ACTUAL GST turnover (as reported on your Business Activity Statement) for the December 2020 quarter has decreased by the relevant amount when compared to the corresponding December 2019 quarter.
Payment Rates
The payment rate will be reduced $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 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 (employed for 12 mths ending on 1 July 2020);
- at least 18 years of age or aged 16 to 17 years and independent or not undertaking full time study;
- an Australian resident; and
- a tax resident and held a special category Subclass 444 visa (for NZ residents)
- not in receipt of a JobKeeper payment from another employer.
Other points to note
- An employee must commence employment by 1 July 2020
- Signing an employment contract and commencing after
1 July will not qualify - Any employees hired after 1 July are not eligible
- A terminated (recommencing) employee would qualify where:
- They were a 1 March employee
- was subsequently terminated
- was never re-employed by another employer
- resumed employment with the same employer after 1 July
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 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.
Action Plan
- Assess income that will be expected for September and compare to Sept’ 19 qtr
- If eligible, will need to apply for JobKeeper 2 prior to lodgement of Sept Qtr BAS JK2 fortnight from 28 Sept to 11 Oct
- Factor effect of receiving and not receiving JK into cashflow budgets
- You will need to Identify those employees that are eligible as a 1 July 2020 employee. The employee must submit the Employee Nomination Form
To qualify for JK3, you will need to reassess eligibility and enrol early January (date unknown).
The ATO will release their specific requirements over the next couple of months for us to report on your business eligibility.
We will keep you informed once we receive updates. In the meantime, please feel free to contact us if you have any questions about JobKeeper V2.
