The existing JobKeeper scheme comes to an end on 27 September. The next phase of the scheme runs from 28 September to 28 March 2021. Our previous outline of the next phase was based on announcements made.
On the 15th September (effective from 16th September), the Legislative Rules for the next phase were registered, providing further clarity on areas that were lacking clarity. If you have already enrolled in the program, there is no need to re-enrol for the next phase. If you qualify for the next phase, all your eligible employees will simply carry over.
Legacy Employers
Employers will be required to re-assess their eligibility for the JobKeeper scheme, they must satisfy a new and modified version of the decline in turnover test. Some employers who previously qualified for the scheme may no longer be eligible after 27 September 2020 (original end date of the scheme), also known as ‘legacy employers.
Recent amendments have extended revised flexibility to legacy employers under the Fair Work Act 2009 (FWA) who are still experiencing at least a 10% decline in turnover. Importantly, legacy employers will generally only be eligible for the FWA concession if they have a ‘10% decline in turnover certificate’ issued by a registered tax agent, BAS agent or a qualified accountant.
Decline in turnover test
Additional testing must be satisfied for each period, the new actual decline in turnover test must be satisfied separately for Extension Period 1 and Extension Period 2. It should be noted that an entity is not automatically excluded from qualifying from the JobKeeper Payment in Extension Period 2 simply because it did not qualify for Extension Period 1.
A business can qualify for the next phase if they experience the requisite decline in actual GST turnover for the September 2020 quarter, they do not have to have qualified for the first phase of the scheme. If the businesses had not previously participated in the scheme, it will need to consider satisfying the original projected GST turnover test (as modified) as well as all the other eligibility criteria (e.g., business was being carried on in Australia on 1 March 2020).
The first monthly declaration for the next phase will be for October, incorporating the first two fortnights, ending 11 October and 25 October. Below is a summary of the next JobKeeper phase
*required decline is either 50% or 30% depending on the group-wide turnover.
Businesses should re-check which decline in threshold applied, 50% or 30% and determine the turnover for the September 2020 quarter as soon as possible after the end of the quarter. Ensure any outstanding BAS for September and December 2019 have been lodged.
Payment rates for employees
From 28 September 2020, a two tiered payment system will apply for the JobKeeper payments.
For the first extension period, employees who have worked for 80 hours or more in the four weeks’ pay period before either 1 March 2020 or 1 July 2020 will receive $1,200 per fortnight, while all other employees will receive $750.
For the second extension period, the rate will drop to $1,000 per fortnight and $650 per fortnight respectively.
It is important to note, the onus lies with the entities and business participants to reasonably demonstrate the basis in which they determined the business participant was actively engaged in the business for the required number of hours in the month of February 2020.
If you have any queries or need assistance call the team at Holden Accountants.
