Job Keeper – Extension 2
4th January 2021 – 28 March 2021
The JobKeeper scheme has been extended from 28 September 2020 until 28 March 2021.
There are two separate extension periods. For each extension period, an additional actual decline in turnover test applies and the rate of the JobKeeper payment is different.
The extension periods are:
- Extension 1: from 28 September 2020 to 3 January 2021
- Extension 2: from 4 January 2021 to 28 March 2021
JobKeeper extension 2
This extension period will run from 4 January 2021 to 28 March 2021.
You will need to show that your actual GST turnover has declined in the December 2020 quarter relative to a comparable period (generally the corresponding quarter in 2019). See the actual decline in turnover test.
You also need to have satisfied the original decline in turnover test. However, if you:
- were entitled to receive JobKeeper for fortnights before 28 September, you have already satisfied the original decline in turnover test
- are enrolling in JobKeeper for the first time from 28 September 2020, if you satisfy the actual decline in turnover test, you will also satisfy the original decline in turnover test (except for certain universities). You can enrol on that basis.
You can be eligible for JobKeeper extension 2 even if you were not eligible for JobKeeper extension 1.
The rates of the JobKeeper payment in this extension period are:
- Tier 1: $1,000 per fortnight (before tax)
- Tier 2: $650 per fortnight (before tax).
Decline in turnover test – Extension 2
The actual decline in turnover test is satisfied for extension 2 when your current GST turnover for the quarter ending 31 December 2020 (the months of October, November and December) has declined by the specified shortfall percentage (15%, 30% or 50%) in comparison to your current GST turnover for the quarter ending 31 December 2019.
If the quarter ending 31 December 2019 is not an appropriate comparison period, you may be able to use an alternative test.
What you need to do
From 28 September 2020, you must do all of the following:
- work out if the tier 1 or tier 2 rate applies to each of your eligible employees and/or eligible business participants and/or eligible religious practitioners
- notify the ATO of your eligible employees and/or eligible business participants and/or eligible religious practitioners what payment rate applies to them
- during JobKeeper extension 2 – ensure your eligible employees are paid at least
- $1,000 per fortnight for tier 1 employees
- $650 per fortnight for tier 2 employees.
For your eligible religious practitioners, you must provide certain benefits to them in the fortnight.
If you are registered for GST and have outstanding BAS statements, you should lodge your BAS for the September 2019 and December 2019 quarters as soon as possible (or for equivalent months, if you report monthly). Un-lodged BAS statements may hold up your application for JobKeeper Payments under the JobKeeper extension.
For further detailed information of the Job Keeper Extension 2 please see the ATO website here.
Our team at Gerard Wilkes & Associates are here to help. If you have any questions or would like to discuss this article further, please contact us at https://www.wilkes.com.au/contact-us/ or call our office 07 5532 1733.
Article sourced from: www.ato.gov.au