The last fortnight of the original JobKeeper scheme has now concluded, and final declarations for the month of September will be due for lodgement by October 14, 2020.
Importantly, the JobKeeper scheme extension period has now been legislated, and there are new tests to determine eligibility for the extension which will need to be satisfied.
Broadly, to be eligible for the extension, you will need to demonstrate the following:
- New Decline in Turnover Test
For extension period 1 (28 September 2020 to 3 January 2021) – you will need to show actual turnover for the September 2020 quarter has declined by more than 30% compared to September 2019;
For extension period 2 (4 January 2021 to 28 March 2021) – you will need to show actual turnover for the December 2020 quarter has declined by more than 30% compared to December 2019.
Actual turnover is now determined by reference to your BAS lodgement method, and in most cases will be the amount reported at G1 of your BAS for that quarter. Accordingly, you will be required to complete your BAS for the September 2020 quarter to be able to confirm your eligibility.
2. Wage Condition
Employers will be required to determine the actual hours worked by each eligible employee during the four-week period ending just before 1 March 2020 (or 1 July 2020 for newly qualifying employees). If this is 80 hours or more, you will be eligible to claim the new upper rate of $1,200 per fortnight for those employees for extension period 1, and $1,000 per fortnight for extension period 2 (subject to meeting the actual decline in turnover test for the relevant extension period).
For eligible business participants, you will need to determine the number of hours the business participant was actively engaged in the business for the calendar month of February 2020. If the total hours of active engagement were 80 hours or more, you will be required to sign a declaration to this effect, and will be eligible to claim the new upper rate.
For each employee or for business participants not meeting the 80 hour requirement, the rate will be $750 per fortnight for extension period 1 and $650 per fortnight for extension period 2.
Notification of your actual turnover for September (based on your BAS) and the applicable rate you are claiming for each employee and business participant will form part of your October monthly declaration, due by November 14, 2020.
For further information on JobKeeper 2.0 – please call or email your regular DRB Group contact.