On 21 July 2020, the Government announced that the JobKeeper Payment (JKP) would extend until 28 March 2021, providing an additional six months.

The ATO has now provided guidance on the JobKeeper extension, which will now be made over two separate periods. The first period covers seven new JobKeeper fortnights that commence on 28 September 2020 and end on 3 January 2021 and; the second period covers six new JobKeeper fortnights commencing on 4 January 2021 and ending on 28 March 2020.

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.

 

Enrolment

The ATO noted businesses that are currently enrolled in Jobkeeper will not need to re-enrol for the new Jobkeeper scheme, nor will they need to provide an employee nomination notice. However if the business is already enrolled and you have additional employees that become eligible on or after 3 August 2020 using the 1 July test, the business must provide your newly eligible employees with a nomination notice.

 

The onus is on the employer to ensure their employees now eligible to receive JKP as a result of the 1 July test are given the opportunity to be included.

 

1 July test – Employee eligibility

On 7 August 2020 the Government announced adjustments to the Jobkeeper 2.0 to expand the eligibility criteria for JKP (now referred to as Jobkeeper 3.0).

 

The new 1 July test is to determine the businesses employee eligibility and is aimed at increasing the number of new employes, including those who;

  • Were hired after 1 March 2020 (and are still employed on 1 July 2020),
  • Have now satisfied the 12-month employment requirement in the definition of a ‘long-term’ casual employee, for JobKeeper purposes by 1 July 2020 (as opposed to 1 March 2020), or;
  • Did not qualify on 1 March 2020 due to their age or visa status but have since qualified by 1 July 2020 (eg they have obtained the necessary visa)

 

Decline in turnover test

Business will need to satisfy the decline in turnover test for the September quarter, and subsequently the December quarter. With the ATO stating it will soon provide further information on how to undertake the calculations.

The new decline in turnover test is based on the businesses actual  GST turnover as opposed to the businesses projected turnover. Businesses will now only need to demonstrate that their actual GST turnover has significantly decreased in the previous quarter under the Jobkeeper 3.0 scheme.

Business can commence claiming the JobKeeper reimbursement for the new eligible employees from 1 September 2020 when they lodge their August monthly declaration claim (which much be lodged no later than 14 September 2020)