wage Archives - dmca advisory

Launch of JobKeeper 2.0

JobKeeper 2.0 is set to begin on September 28 and will run until March 28, 2021. Many businesses will still be eligible for payments, but others may find the new criteria makes them ineligible to continue in the program. Although the finer details are still being worked out by the ATO, here are the main points:

Extended access to the program

Good news. If you employed a permanent staff member before 1 July, they may now be eligible for JobKeeper. In addition, if you have casuals who have been employed with you for 12 months on or before 1 July 2020, they may also be able to participate in the program. (Please call our office for details of how to register new staff members if your business will still qualify for JobKeeper.)

Eligibility

To be eligible for JobKeeper 2.0 payments, businesses must show an actual fall in turnover of at least 30 per cent for the September 2020 quarter, including calculations of GST for the September 2019 comparison quarter. (Entities will now be required to demonstrate that their actual GST turnover has declined by the required percentage, rather than projected GST turnover under the first phase of the wage subsidy scheme.)

Assessment

While many of the details are still to be finalised, it is likely business activity statements will play a large role in eligibility for the scheme. For those who are ineligible in September for the new JobKeeper 2.0, it is important to remember that you can still apply if circumstances change.

Payment levels

JobKeeper 2.0 will now examine how many hours are worked by staff in any month, and there will be two tiers of payments, to be paid on a fortnightly basis.

From 28 September until 3 January 2021, all eligible employees who worked 80 hours or more in the four weekly pay periods before either March 1 or July 1 will receive the tier one rate, worth $1,200 per fortnight before tax. All other eligible staff that do not meet this threshold will be paid under the second tier, worth $750 a fortnight.
From 4 January 2021 to 28 March 2021, the payment rate will drop back to $1,000 per fortnight for all eligible employees and $650 per fortnight for employees who were working for less than 20 hours a week on average. Once again, participants will need to prove their reduced income for the December quarter compared with the same quarter in 2019

Sole traders

Sole traders will need to provide declarations about their involvement in their businesses during February. Eligible business participants must have been actively engaged in their business for 80 hours or more in February to claim the higher tier of payments, worth $1,200 per fortnight. (They will also need to prove the relevant drop in turnover for the September quarter.)

Further information about how to qualify for the new scheme will be released by the ATO shortly, until then this is an excellent summary: https://www.accountantsdaily.com.au/tax-compliance/14835-ato-guidance-imminent-as-jobkeeper-rules-land.

For assistance with any questions about JobKeeper 2.0, please contact our office and our advisers and we will be happy to assist.