The second tranche of the JobKeeper scheme changes the eligibility test for employers and the method and amount paid to employees.
If your business currently receives JobKeeper, your arrangements will generally remain unchanged until 27 September 2020. From 28 September
2020, employers seeking to claim JobKeeper payments will need to reassess their eligibility and prove an actual decline in turnover.
To continue receiving JobKeeper payments, employers will need to reassess their eligibility with reference to actual GST turnover for the
June and September 2020 quarters (for payments between 28 September to 3 January 2021), and again for the June, September and December 2020
quarters (for payments between 4 January 2021 to 28 March 2021).
The broad eligibility tests to access JobKeeper remain the same with an extended decline in turnover test.
On 1 March 2020, carried on a business in Australia or was a non‑profit body pursuing its objectives principally in Australia; and
>15% for an ACNC-registered charity (excluding universities, or schools within the meaning of the GST Act – these entities need to meet the basic turnover test)
> 50% for large businesses:
>30% for all other qualifying entities.
And, was not:
On 1 March 2020, subject to Major Bank Levy for any quarter ending before this date, a member of a consolidated group and another member of the group had been subject to the levy;
A government body of a particular kind, or a wholly-owned entity of such a body;
At any time in the fortnight, a provisional liquidator or liquidator has been appointed to the business or a trustee in bankruptcy had been appointed to the individual’s property.
1 March 2020 is an absolute date. An employer that had ceased trading, commenced after 1 March 2020, or was not pursuing its objectives in Australia at that date, is not eligible.
*Additional tests apply from 28 September 2020.
To receive JobKeeper payments from 28 September 2020, businesses will need to meet the basic eligibility tests and an extended decline in turnover test based on actual GST turnover.
|28 September to 3 January 2021||4 January 2021 to 28 March 2021|
|Decline in turnover||Projected GST turnover for a relevant month or quarter is expected to fall by at least 30% (15% for ACNC-registered charities, 50% for large businesses) compared to the same period in 2019.*||Projected GST turnover for a relevant month or quarter is expected to fall by at least 30% (15% for ACNC-registered charities, 50% for large businesses) compared to the same period in 2019.*||Actual GST turnover in the June, September and December 2020 quarters fell by at least 30% (15% for ACNC-registered charities, 50% for large businesses) compared to the same periods in 2019. The decline for all three of the quarters needs to be met to continue receiving JobKeeper payments.|
* Alternative tests potentially apply where a business fails the basic test and does not have a relevant comparison period.
Most businesses will generally use their Business Activity Statement (BAS) reporting to assess eligibility. However, as the BAS deadlines are generally not due until the month after the end of the quarter, eligibility for JobKeeper will need to be assessed in advance of the BAS reporting deadlines to meet the wage condition for eligible employees. However, the ATO will have discretion to extend the time an entity has to pay employees in order to meet the wage condition. Alternative arrangements are expected to be put in place for businesses and not-for-profits that are not required to lodge a BAS (for example, if the entity is a member of a GST group).
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 actual turnover in a quarter in 2020 with actual turnover in a quarter in 2019, in line with the Commissioner’s existing discretion.
Employee eligibility will remain broadly the same but the value of the payment will change from 28 September based on average weekly hours in February 2020.
On 1 March 2020:
And, at any point during the JobKeeper fortnight:
And, has provided the JobKeeper Payment Employee Nomination to the employer:
*A ‘long term casual employee’ is a person who has been employed by the business on a regular and systematic basis during the period of 12 months that ended on 1 March 2020 (1 March 2019 to 1 March 2020). These are likely to be employees with a recurring work schedule or a reasonable expectation of ongoing work.
|28 September to 3 January 2021||4 January 2021 to 28 March 2021|
|$1,500 per fortnight per employee||
JobKeeper payments from 28 September 2020 are paid at a lower rate for employees who worked less than 20 hours per week on average in the four weeks of pay periods before 1 March 2020.
The Commissioner of Taxation will have discretion to set out alternative tests for those situations where an employee’s or business
participant’s hours were not usual during February 2020. Also, the ATO will provide guidance on how this will be dealt with when pay periods
are not weekly.
If your business and your employees passed the original eligibility tests to access JobKeeper, and you have fulfilled your wage
requirements, you can continue to claim JobKeeper up until the last JobKeeper fortnight that ends on 27 September 2020.
ATO assistant commissioner Andrew Watson said in a recent interview, “Once you’re in, you’re in to the end of September. If you meet the eligibility test once, you’re in it for the whole time.” The original eligibility test was a once only test although there are ongoing conditions that need to be satisfied for each JobKeeper fortnight.
The Coronavirus supplement will continue, albeit on a reduced rate of $250 per fortnight (from $550), from 25 September until 31 December 2020 for eligible individuals.
|27 April to 24 September 2020
||$550 per fortnight
|25 September to 31 December 2020
||$250 per fortnight
Eligibility remains the same. That is, those receiving:
The eligibility criteria and some of the tests for access to income support is changing.
Eligibility and access
The expanded eligibility criteria for the Jobseeker Payment and the Youth Allowance Jobseeker will continue to apply until 31 December 2020:
In addition, if you receive JobSeeker or Youth Allowance payments, the amount you can earn before impacting income support has been increased to $300 per fortnight from 25 September 2020 until 31 December 2020.
However, a number of restrictions have been reintroduced.
From 25 September 2020, the assets test and the Liquid Assets Waiting Period (applies to those with assets such as cash savings worth over
$5,500 for singles or $11,000 for singles with children and partnered people) will be reintroduced for access to income support payments.
In addition, partner income testing will resume from 25 September, albeit with higher thresholds than those pre coronavirus. That is, you will not be eligible for income support if you are not earning an income but your partner earns $3,086.11 per fortnight or $80,238.89 per annum. The partner income test taper rate will increase from 25 cents for every dollar of partner income earned over $996 per fortnight to 27 cents for every dollar of partner income earned over $1,165 per fortnight.
Job seeking requirements that were suspended from 24 March 2020 have been introduced from 9 June 2020. The mutual obligation requirements include:
Some waiting periods for access to income support will continue to be waived until 31 December 2020:
In the 2019–20 Budget, the government announced that Single Touch Payroll (STP) would be expanded to include additional information.
Throughout March, the ATO sent letters to directors who are potentially in breach of their obligations to ensure that the company they represent has met its PAYG withholding, superannuation guarantee charge, or GST obligations.
It’s a great headline isn’t it? Spend $100 and get a $120 tax deduction. Days after the Federal Budget announcement that businesses will be able to claim a 120% deduction for expenditure on training and technology costs, we started receiving marketing emails encouraging us to spend now to access the deduction.