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JobKeeper Extensions - September 2020 to March 2021

Written by Wan-Ling Liu . September 18, 2020
4 min read

Further announcements have been released by the ATO concerning the extensions to the JobKeeper Payment from 28 September 2020, with some important changes.

There are two extension periods:

  • Extension 1 runs for the period 28 September 2020 to 3 January 2021
  • Extension 2 runs for the period 4 January 2021 to 28 March 2021

The rate of the JobKeeper payment is different for each of these extensions, and an additional actual decline in turnover test will apply. We go through the eligibility and payment rates below.

If you were previously not enrolled for JobKeeper payments but believe that you may be eligible for JobKeeper payments from the 28 September, please talk with us as soon as possible so we can discuss your options.

Eligibility for JobKeeper Extensions

In order to qualify for the extensions, your business will need to:

  1. Show a decline in actual GST turnover by:
  • 30% for businesses with an annual aggregated turnover of $1 billion or less
  • 50% for businesses with an annual aggregated turnover of more than $1 billion
  • 15% for a charity registered with ACNC other than a university and non-government school

In the September 2020 quarter compared to the September 2019 quarter, for JobKeeper Extension 1.

In the December 2020 quarter compared to the December 2019 quarter, for JobKeeper Extension 2.

Rate of Payment

The rate of the JobKeeper payment in each extension period will depend on the number of hours:

  • an eligible employee works, or
  • an eligible business participant is actively engaged in the business.

Tier

Applicable for

Rate of Payment (Extension 1)

Rate of Payment (Extension 2)

Tier 1

Eligible employees who worked for 80 hours or more in the four weeks of pay period before either:

>  1 March 2020

>  1 July 2020

 

Eligible Business Participants who were actively engaged in the business for 80 hours or more in February 2020

 

$1,200 per fortnight (before tax)

$1,000 per fortnight (before tax)

Tier 2

All other eligible employees or eligible business participants

$750 per fortnight (before tax)

$650 per fortnight (before tax)

 

Employers and businesses will need to nominate the rate they are claiming for each eligible employee and/or eligible business participant.

What to do Next

  • Work out if the Tier 1 or Tier 2 rate applies to each of your eligible employees and/or eligible business participants
  • Notify the ATO of your eligible employees and/or eligible business participants, and the payment rates that apply to each individual. The ATO will release further guidance of how to advise them of the relevant payment rates.
  • During JobKeeper Extension 1 period – ensure your eligible employees are paid at least:
    • $1,200 per fortnight for Tier 1 employees
    • $750 per fortnight for Tier 2 employees
  • Lodge any outstanding BAS statements for the September 2019 and December 2019 quarters. Un-lodged BAS statements may hold up your application for JobKeeper Payments under the JobKeeper Extension
  • If you are eligible for the JobKeeper Extension, and are currently enrolled for JobKeeper Payments for the fortnights before 28 September:
    • You won’t need to re-enrol for the JobKeeper Extension
    • You won’t need to ask your employees again to agree to be nominated by you as their eligible employee
  • If you are eligible for the JobKeeper Extension but are not currently enrolled for JobKeeper Payments then please have a talk with our team now so we can help you get set up.
COVID-19 Business Updates

As always we will provide an update of any further requirements when we hear more from the ATO. In the meantime if you have any questions our team are always available so please don't hestitate to talk with us.

Written by Wan-Ling Liu . September 18, 2020
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