Legislation to extend JobKeeper has passed both houses and received royal assent, and just registered yesterday afternoon is the legislative instrument Coronavirus Economic Response Package (Payments and Benefits) Amendment Rules (No. 8) 2020.
The instrument sets out the decline in turnover test for the extension of JobKeeper to 28 March 2021, and the new two-tiered payment rates.
Further guidance from the ATO is expected very soon, which may allow the Commissioner to set alternative references for applying the now alternative rates of payment.
So whilst we wait for the alternative references and ATO Guidance the legislation sets out the following:
Please note when reading the below paragraphs I have not replicated the legislation but tried to bring to the front some of the key items in the legislation. The information is thus not complete and should not be relied upon without professional advice. The Mobile Accountant Steven Sherrah can help in this instance on 0419 854 982. There are certain steps to be taken to qualify for Jobkeeper 2.0
Decline Test
To satisfy the decline in turnover test for the extension to 3 January 2021 you will need to compare the September 2019 quarter actual GST Turnover figures with the September 2020 quarter actual GST Turnover figures.
To satisfy the decline in turnover test for the extension of 4 January 2021 to 28 March 2021 you will need to compare the December 2019 quarter actual GST Turnover figures with the December 2020 quarter actual GST Turnover figures.
The decline percentages have remained the same as Jobkeeper 1:
30% fall in turnover (for an aggregated turnover of $1 billion or less)
15% fall in turnover (for ACNC-registered charities other than universities and schools)
Rate of Jobkeeper
The amount of an entity’s jobkeeper payment for an individual for a fortnight is:
(a) for a fortnight beginning before 28 September 2020—$1,500; or
(b) for a fortnight beginning on or after 28 September 2020—the amount determined under the following table.
If the fortnight begins before 4 January 2021
The amount of a jobkeeper payment for an individual is:
(a) if the higher rate applies to the individual—$1,200; or
(b) if the lower rate applies to the individual—$750
If the fortnight begins on or after 4 January 2021
(a) if the higher rate applies to the individual—$1,000; or
(b) if the lower rate applies to the individual—$650
Higher Rate or Lower Rate
The general rule is did the employee or business participant work at least 80 hours in the 28 day period prior to March 2021 or July 2021; if so they get the higher rate - if not they get the lower rate.
Please note that this information is Factual in nature and not complete we are still awaiting ATO Guidance on this legislation; it is neither General or Specific advice relevant to your specific circumstances and should not be relied upon without Professional Advice.
If you need assistance contact Steven Sherrah Mobile Accountant 0419854982
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