The first tranche of JobKeeper ends on 27 September 2020. Those needing further support will need to reassess their eligibility and prove an actual decline in turnover.
To receive JobKeeper from 28 September 2020, eligible employers need to assess their decline in turnover with reference to actual GST turnover for the September 2020 quarter (for JobKeeper payments between 28 September to 3 January 2021), and again for the December 2020 quarter (for payments between 4 January 2021 to 28 March 2021).
From 28 September 2020, the JobKeeper payment rate will reduce and split into a higher and lower rate based on the number of hours the employee worked in a specific 28-day period prior to 1 March 2020 or 1 July 2020.
To access JobKeeper payments from 28 September 2020, there are three questions that need to be assessed:
1. Is my business eligible?
2. Am I and/or my employees eligible? and
3. What JobKeeper rate applies?
It is important to note that eligibility for one JobKeeper period does not entitle you to, or exclude you from, payments in another period. Each eligibility period is addressed separately. That is, there might be businesses that qualified for the first tranche of JobKeeper, don’t qualify for the second tranche but qualify for the third.
We have summarised the key details in this update.
Let us know if we can assist you in any way.
Is my business eligible
Businesses already enrolled in JobKeeper
For businesses already enrolled in JobKeeper, to receive payments from 28 September 2020, you need to meet an extended decline in turnover test based on actual GST turnover.
Businesses enrolling for the first time
Businesses that are enrolling for the first time, need to meet both the:
- basic eligibility test, and
- the decline in turnover test/s for the relevant period.
An eligible employer is an employer that:
- On 1 March 2020, carried on a business in Australia; and
- Before the end of a JobKeeper fortnight, met the original decline in turnover test; and
- Was not an excluded entity
Decline in Turnover Tests
Calculating GST turnover for tranches 2 and 3 of JobKeeper is different to the original JobKeeper requirements as entities will only be using current GST turnover figures (not projected GST turnover). Furthermore, you must now use the same method that is used for GST reporting purposes.
The employer must have paid the eligible employee at least the applicable JobKeeper payment for the relevant fortnight.
Am I and/or my employees eligible?
The eligibility for employees has remained largely the same. The key change being the date at which you assess whether an employee is eligible.
This date has now been brought forward to 1 July 2020, meaning that employees who may not have qualified previously may now qualify.
What JobKeeper rate applies?
From 28 September 2020, the payment rate for JobKeeper will taper from the flat rate of $1,500 and split into a higher and lower rate.
What is a reference period?