JobKeeper Extension Frequently Asked Questions | Matthews Steer
Matthews Steer answers frequently asked questions about the Australian Government's JobKeeper program extension.
If I am already enrolled in JobKeeper, do I need to retest my eligibility?
Yes, there is an extended decline in turnover test to satisfy based on actual GST turnover however you do not need to re-enrol or complete employee nomination forms for your employees who were already part of JobKeeper 1.0.
How do I satisfy the decline in turnover test?
- Extension 1 (period between 28th September 2020 & 3rd January 2021)
- If registered for GST:
- turnover is based on what is reported at Label G1 on the September 2020 BAS compared to the amount reported in Label G1 on the September 2019 BAS,
- The decline still needs to be at least 30% (less than $1 billion in aggregated turnover) between the two periods to be eligible.
- If registered for GST:
- For entities not registered for GST:
- you can choose whether to calculate GST turnover using cash or accruals basis, however it needs to be consistent.
- Extension 2 (period between 4th January & 28th March 2021)
- The method of determining turnover is the same as Extension 1 however the comparative periods are the December 2020 quarter and December 2019 quarter.
Are there any other alternative decline in turnover test(s)?
At the time of preparing this document the ATO has not released information regarding any alternative tests. However, we believe that alternative tests will be available to businesses with different circumstances (i.e. new businesses, businesses with substantial growth, businesses effect by drought or fire), similar to the alternative tests that were available under JobKeeper 1.0.
Do I still need to meet the wage condition for my employees?
Yes, since the due date for the September 2020 BAS is not until the end of October, the eligibility will need to be assessed in advance of lodging the September 2020 BAS to meet the wage condition for eligible employees.
However, the ATO is allowing employers until 31 October to pay employees for the fortnights starting 28 September and 12 October after determining eligibility.
Can I still enrol in the JobKeeper scheme from the 28th September?
Yes, as long as you meet the basic eligibility test & the new decline in turnover test for the relevant period you are applying for.
What is the Tier 1 & Tier 2 payment system?
Previously, there was a set amount of $1,500 per fortnight for eligible employees. However, from the 28th September the payment system will be based on how many hours each eligible employee worked.
- Extension 1:
- Tier 1: $1,200 per fortnight (before tax) applies:
- if the employee worked more than 80 hours in the four weeks of pay periods before either 1 March 2020 or 1 July 2020.
- for eligible business participants, they need to be actively engaged in the business for 80 hours or more in February and provide a declaration to confirm this.
- Tier 1: $1,200 per fortnight (before tax) applies:
- Tier 2: $750 per fortnight (before tax) applies:
- for all other eligible employees and business participants.
- Extension 2:
- Tier 1: $1,000 per fortnight (before tax)
- Tier 2: $650 per fortnight (before tax)
- The business will need to nominate the relevant rate they are claiming for each eligible employee and business participant.
Do I still need to withhold tax and pay super?
Yes, this requirement remains unchanged from JobKeeper 1.0.
Would I be eligible for JobKeeper Extension 2, if I don’t meet the requirement for JobKeeper Extension 1?
Yes, given both extensions have different testing periods for assessing decline in turnover. You could be eligible for either or both extensions as they are assessed separately.