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.
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.