The JobKeeper program has been extended beyond 27 September 2020 – and will be called JobKeeper 2.0 (JK 2.0)
Some “key take-away’s” from our point of view are:
- The decline in income tests are now based on ACTUAL income for the QUARTER (September 2020 and / or December 2020)
- You can still be eligible for JK 2.0 even if you were not eligible for JK 1.0 (that is, your decline in income hasn’t materialised until after June 2020)
- It is much harder to meet the eligibility criteria for JK 2.0 than JK 1.0
Eligibility for the first extension period (which commences on 28 September 2020) is predominantly based on a decline in turnover for the September 2020 quarter, as compared to the September 2019 quarter (and for businesses under $1billion turnover – that required decline is 50%).
Note – you will have until 31 October 2020 to review your eligibility (by reference to your decline in turnover) and “top up” wages, if need be.
HFB’s Highlights – JK 2.0
There has been lots of press about JK 2.0 – and here are some of the highlights of the newly extended program:
- Two extension periods –
- 28 September 2020 to 3 January 2021, and
- 4 January 2021 to 28 March 2021
- Eligibility to JK 2.0 is again centred around a reduction in turnover, however, the “income decline” tests must be based on actual turnover – no provision for using projected turnover.
- Payment rates to employees have changed, they have –
- reduced, and
- are dependent on the number of hours an employee works per reference period
- Payment rates for extension period #1
- $1,200 per fortnight for employees working more than 80 hours per reference period and,
- $750 per fortnight for employees working less than 80 hours per reference period
- Payment rates for extension period #2
- $1,000 per fortnight for employees working more than 80 hours per reference period and,
- $650 per fortnight for employees working less than 80 hours per reference period
There are a number of tests for each of the above elements – that we will assist you with to determine eligibility to JK 2.0.
What YOU need to do…
Because of the timeframe required to complete this assessment, it is our recommendation that you should inform your staff that all JobKeeper top-ups will cease on 27 September 2020.
If you do not wait for the assessment for your eligibility to JK 2.0 and continue to make top-up payments, you may find yourself in the situation whereby you have made payments to staff but will not be eligible for reimbursement under JK 2.0. If you confirm you are eligible for JK 2.0, you will then be able to make JobKeeper top-ups to any relevant staff. You have until 31 October to make JK 2.0 top ups.
IF YOU ARE CURRENTLY CLAIMING JK 1.0 – we will review your records and financial data to determine eligibility for JK 2.0 in October, once we have actual data for the September 2020 quarter.
IF YOU ARE NOT CURRENTLY CLAIMING JK 1.0 BUT FEEL YOU MAY BE ELIGIBLE FOR JK 2.0 – please call Tim Davis on 3286 1322 so that we can review your eligibility.