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JobKeeper 2.0

Posted by: Eye on Books on 22 Jul 2020 | 0 Comments
JobKeeper has been extended to March 2021 to help employees of small business in Australia. Will your business and employees still be eligible?

Related blog categories: Bookkeeping, ATO Updates, COVID-19

Prime Minister Scott Morrison and Treasurer Josh Frydenberg have announced today that the current $1,500 per fortnight JobKeeper payment will be reduced to $1,200 per fortnight from 28 September, and $750 per fortnight for employees working less than 20 hours a week.

21 July 2020 - Exact details are still to come, at this stage this is a summary of what we know based on the Treasury Fact Sheet

10 August 2020 - Changes around JobKeeper 1 and employees that are eligible, AND changes to eligibility around JK 2.0 which we're calling JobKeeper 2.1. Updated below

18 September 2020 - JobKeeper extension passed into parliament, and ATO issues guidlines. Now we know the facts!  FAIRWORK changes below

NOTHING CHANGES BEFORE END OF SEPTEMBER!

Then some become ineligible and others receive less...


wHICH EMPLOYERS qualify for jobkeeper 2.0?

  • Business currently receiving JobKeeper that experience an ongoing Decline in Actual GST turnover of 30% (50% large or 15% NFP), OR
  • Business allowed to enter JobKeeper if they meet all eligiblity requirements including Decline in Turnover

Noting that this includes self employed under the Eligible Business Participant scheme

"ongoing actual decline in turnover"

This means that the business needs to assess their actual GST turnover for the quarters 30 September 2020, and 31 December 2020 and calculate whether their decline is still 30% or more.  This has changed.  Previously you only had to meet it once (or just PROJECT a decline). This requires a quarterly assessment of ACTUAL decline.

For the 28 September to 3 January 2021 JobKeeper payment period

Employer must have an actual decline of 30% or more for the quarter ended 30 September 2020 compared to 2019;

For the 4 January to 28 March 2021 JobKeeper payment period

Employer must have an actual decline of 30% or more for quarter ended 31 December 2020 compared to 2019

NOTE:  All BAS’s for June (monthly or quarterly) will have been lodged and the GST turnover needs to be the same as the BAS (based on Treasury Fact Sheet, noting this is different to previous ATO information on calculation of GST Turnover.  The ATO therefore may perform this eligibility testing, they will certainly be doing integrity checking!

IMPACT: Employers who did NOT decline 30% in the SEPTEMBER quarter will cease JobKeeper as from 28 September.

It is a QUARTERLY test of actual turnover this year compared to same quarter last year.


How much jobKeeper to pay/receive?

EMPLOYEES WHO WORK 80 HOURS OR MORE PER 4 WEEK PERIOD

In the four weeks of pay periods before 1 March 2020 or before 30 June 2020: They worked for 20 hours or more per week on average. Or Eligible Business Participants actively engaged in the business for 20 hours or more per week on average during February or June 2020

  • $1500 per fortnight continues until 27 September (no change), then;
  • $1200 per fortnight until 3 January 2021, then
  • $1000 per fortnight until 28 March 2021, then
  • Unknown - Currently it would stop?

EMPLOYEES WHO WORK LESS THAN 20 HOURS PER WEEK

  • $1500 per fortnight continues until 27 September (no change), then;
  • $750 per fortnight until 3 January 2021, then
  • $650 per fortnight until 28 March 2021, then
  • Unknown - Currently it would stop?

 


Which Employees?

No change to employee eligilibity requirements.

NOTE: Must have been an employee as of 1 June 2020


Fair work

Group A - "Qualifying" Employers - full provisions

Employers who continue to receive JobKeeper after September 2020 are defined as "Qualifying Employers". This of course means they had a 30% decline in actual GST turnover for the quarter ended 30th September 2020 compared to 2019.

They are eligible to continue to apply the Fair Work JobKeeper directions

What are these provisions:

The same provisions as in place for JobKeeper 1

  • Directions to change location of work
  • Employer can reach an agreement with employee around days & times of work
  • Stand down directions to an employee to reduce ordinary hours, including to zero
  • 3-days notification requirements

But not!

The JK1 Fair Work Provisions to allow directions to take annual leave or agreement to take annual leave at half pay will cease as of 27th September 2020

Group B - "Legacy "Employers - different provisions

Employers who were on JK before 28th September but are no longer on JK

For October 2020: If the employer has a 10% decline in actual GST Turnover in Quarter ended 30 June 2020 compared to 2019 then eligible to use modified "Legacy" provisions.

For 28th October until 27th February 2021: If the employer has a 10% decline in the Quarter ended 30th September 2020 compared to 2019  then eligible

After 28th February till end of JK: if the employer has a 10% decline in the December 2020 Quarter

A certificate is required

Employers can have their Tax Agent or BAS Agent provide the certificate.  Small employers (15 employees or less) can sign their own statutory declaration, or like larger employer obtain a certificate from their eligible Tax Agent or BAS Agent

The "Legacy" different provisions

To apply the provisions a legacy employer must allow for a 7-day notification period (as compared to 3 days)

JK directions can be applied to;

  • Duties and location of work
  • Can reach agreement with that employee around days & times of work

The direction in relation to reduced hours is different:

  • Can only reduce an employee's hours to a minimum of 60% of ordinary hours of work assessed on 1st March 2020

 


What Didn't Change?

Nothing changes until after September, then there is work to do. The employer must pay the employee before claiming the JK subsidy back as a reimbursement.


Notes

  • New Businesses established since 1 March will not be eligible for JK
  • Existing businesses that previously did not enter JK but are eligible may now enrol
  • No new employees become eligible and rules do not change for employee eligibliy.  Must have been employed as of 1 June and if casual, for longer than 12 months

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