Jobkeeper 2.0 FAQ’s Answered
The recent announcements concerning changes to JobKeeper has created some confusion. We answer our most frequently asked questions to provide you with clarity.
Question 1: Does JobKeeper 1 end in September?
Yes, the last fortnight ends on the 27th September.
Don’t forget to put your claim in on the 1st October for the 2 fortnights in September!!!
Question 2: My August claim is showing $4,500 per employee is there an error
This is correct. Due to the timing of the fortnights, the August period had 3 fortnightly payruns which you are entitled to claim for eligible employees.
Question 3: I have employees I have enrolled under Job Keeper 2.0 as they were eligible from the 1st July do I claim the 3 fortnights?
No, the employees who you have enrolled under Job Keeper 2.0 are only eligible for the fortnights from the 3rd August. Therefore, when claiming for August you will claim 3 fortnights ($4,500) for employees on JobKeeper 1.0 and 2 fortnights ($3,000) for those on JobKeeper 2.0.
Question 4: Will businesses currently eligible for JobKeeper need to requalify for JobKeeper 2.0?
Yes. To be eligible after 27th September, businesses will need to re-establish their eligibility. Businesses and not-for-profits seeking to claim the JobKeeper Payment will be required to demonstrate that they have suffered an ongoing significant decline in turnover using actual GST turnover (rather than projected GST turnover) for the September 2020 quarter, to be eligible for the December quarter payments.
Businesses will again need to reassess their eligibility for the March 2021 quarter. They will need to demonstrate that they have met the relevant decline in turnover test in 2020 December quarter to remain eligible for the 2021 March quarter.
Question 5: Will the JobKeeper payment rates change?
Yes, The JobKeeper payment rates will be reduced and will move to a two-tier system.
From 28 September 2020 to 3 January 2021
The new payment rate of $1,200 per fortnight will be available for employees who were working in the business or non-for-profit for 20 hours or more a week on average in the four pay periods before the above referenced period. This includes business participants who were actively engaged in the business for more than 20 hours per week during this time. The new rate of $750 will also now apply for employees working 20 hours or less on average working in the business or not-for-profit. This includes business participants who were actively engaged in the business less than 20 hours per week four weeks before the above date range.
From 4 January 2021 to 28 March 2021
Within the above date range, further changes will be made. The new payment rate will be $1,000 per fortnight for all eligible employees who were working in the business for 20 hours or more per week on average in the four pay runs prior to the above date range. This includes again business participants who were actively engaged in the business for more than 20 hours per week on average. Employees and Business participants working less than 20 hours per week in the four pay runs prior to the above dates will be eligible for the new payment rate of $650 per fortnight.
However, as with the initial JobKeeper this is still a waiting game. The Government has passed the legislation and it is now with the ATO to advise on the rules i.e.:
- What is actual turnover measured against
- What alternate tests are available for measurement?
- If an employee’s hours were not their standard hours in February what pay rate will apply
Question 6: I think I will be eligible for Jobkeeper 2.0 what do I need to do?
At present there is nothing we can do as the ATO is in the process of developing the next stage including registration.
As soon as we are aware, we will advise what needs to happen.
Question 7: My business has experienced a downturn can I access any government funding?
Yes, if you now meet the eligibility criteria for Jobkeeper you are eligible to apply. Please contact us and we can advise as to what the next steps are.