Legislation was released last week giving effect to the extended JKP Scheme.
PAYMENT RATES
First extension period – 28 September 2020 to 3 January 2021 ($1,200 or $750)
- Employees who worked for 80 hours or more in the 28-day period before either 1 March 2020 or 1 July 2020 will receive $1,200 per fortnight.
- Other employees will receive $750 per fortnight.
- Eligible business participants who were actively engaged in the business carried on by the entity (i.e. operating the business or undertaking specific tasks in business development and planning, regulatory compliance or similar activities) for 80 hours or more in the month of February 2020 will receive $1,200 per fortnight.
- Other eligible business participants will receive $750 per fortnight.
Second extension period – 4 January 2021 to 28 March 2021 ($1,000 or $650)
- Employees who worked for 80 hours or more in the 28-day period before either 1 March 2020 or 1 July 2020 will receive $1,000 per fortnight
- Other employees will receive $650 per fortnight.
- Eligible business participants who were actively engaged in the business carried on by the entity (i.e. operating the business or undertaking specific tasks in business development and planning, regulatory compliance or similar activities) for 80 hours or more in the month of February 2020 will receive $1,000 per fortnight.
- Other eligible business participants will receive $650 per fortnight.
ELIGIBILITY
New participants
If you are enrolling in the JKP Scheme from 28 September 2020, you will need to satisfy the actual decline in turnover test.
Existing participants
If you are an existing participant (that is, enrolled in the JKP Scheme before 28 September 2020) you have already satisfied the original decline in turnover test and do not need to satisfy it again.
However, to continue to qualify for the JobKeeper payments during the extension periods (that is, from 28 September 2020) you must also satisfy the actual decline in turnover test.
Actual decline in turnover test
A business with a turnover of $1 billion or less will be required to demonstrate a decline in actual GST turnover of 30% or more relative to its comparable quarter in 2019.
First extension period – 28 September 2020 to 3 January 2021
To qualify for the JKP Scheme under the first extension period, your actual GST turnover for the September 2020 quarter will be compared with your actual GST turnover for the September 2019 quarter.
Second extension period – 4 January 2021 to 28 March 2021
To qualify for the JKP Scheme under the second extension period, your actual GST turnover for the December 2020 quarter will be compared with your actual GST turnover for the December 2019 quarter.
Entities can qualify for each extension period if they satisfy the actual decline in turnover test for that quarter, even if they did not previously qualify.
Alterative Tests
Alternative tests are available for the decline in turnover test, and there are alternative reference periods for working out if the higher or lower JobKeeper rate applies in respect of eligible employees and business participants in circumstances where the standard turnover test or reference period might not be suitable.
Extension for new employees
For JobKeeper fortnights beginning on or after 3 August 2020, the reference date for eligible employees is 1 July 2020 (previously 1 March 2020). That is, eligible employees will be those that were employed on 1 July 2020 on a full time, part-time, fixed term permanent, or long term (more than twelve months) casual basis.
Employees who were eligible for the JKP Scheme because they satisfied the 1 March 2020 requirements do not need to retest their eligibility due to the introduction of the 1 July 2020 date.
NOTIFICATION REQUIREMENTS
Before you can claim a payment for a JobKeeper fortnight from 28 September 2020, you must notify the ATO what payment rate applies to each of your eligible employees or eligible business participants.
Within 7 days of notifying the ATO which rate applies, you must also notify each individual in writing of their rate (unless you are a sole trader claiming for yourself as an eligible business participant).
If you are already enrolled in JobKeeper and eligible for the extension, you can notify the ATO in your business monthly declaration in November.
ENROLMENT
You can enrol for JobKeeper until the program closes, provided you meet the eligibility requirements. You will need to enrol by the end of each month to claim reimbursements for JobKeeper fortnights in that month.
For further information about JobKeeper please speak with your LT accountant. Contact LT today