On 15 September 2020, Treasury registered the amended  rules that will govern JobKeeper 2.0. These rules are based on the original rules.

We will be contacting all our clients again, to assess eligibility to JobKeeper 2.0.  If you think you may qualify, and don’t have the support of a qualified accountant or bookkeeper, please reach out on enquiries@aspire-ca.com.au.  Below is a summary of the key points regarding JobKeeper 2.0:

Extension of the JobKeeper payment to 28 March 2021:

JobKeeper will be extended to the following periods:

• Extension Period 1: This covers the period from 28 September 2020 – 3 January 2021.
• Extension Period 2: This covers the period from 4 January 2021 – 28 March 2021 

Employer Eligibility – Extension Period 1: 

To qualify for the JK2.0 payment for extension period 1, 2 tests must be satisfied by the employer:

• Test 1: The Original Projected GST decline in turnover test:  showing a decline in any of the calendar months or quarters from March 2020 to December 2020; and

• Test 2: The New actual GST decline in turnover test: where the actual GST turnover has declined by the required percentage (30% or 50% as per JK1.0) for the quarter ended 30 September 2020 vs the quarter ended 30 September 2019.

If you are a Legacy Employer (qualified for JK1.0) then you will not need to work through test 1 as you have already qualified using this test.Employer Eligibility – Extension Period 2: 

To qualify for the JobKeeper payment for extension period 2, the same 2 tests must be satisfied by the employer:

• Test 1: The Original Projected GST decline in turnover test:  showing a decline in any of the calendar months or quarters from March 2020 to December 2020; and

• Test 2: The New actual GST decline in turnover test: where the actual GST turnover has declined by the required percentage (30% or 50% for Charities) for the quarter ended 31 December 2020 vs the quarter ended 31 December 2019.

If you are a Legacy Employer (qualified for JK1.0 or Extension period 1) then you will not need to work through test 1 as you have already qualified using this test. 

New Actual Decline in turnover test:

This test can be satisfied using a basic or alternate test.  An alternate test should only be used where there is not an appropriate comparison period (i.e. a business operating for less than a year).

• In calculating an entity’s current GST turnover, a supply is treated as being made at a time in the test period to the extent the GST payable on that supply would be attributed to that test period. Broadly this means the basis upon which you are registered for GST.

• The definition of GST turnover for is different for JK2.0, and includes turnover such as sales of capital assets, which were previously excluded under JK1.0. The JK2.0 definition is far broader.
• Your eligibility for the extension periods is not contingent on having qualified for any, or all, of the earlier periods.

Payment rates for JobKeeper 2.0:

A two-tiered payment system will apply to JK2.0 (before tax):

	Extension Period 1	Extension Period 2
Higher Rate	$1,200 per fortnight	$1,000 per fortnight
Lower Rate	$750 per fortnight	$650 per fortnight

The wage condition will be based on the above applicable rates.

Who gets paid the higher rate?

The higher rate applies to employees who worked for 80 hours or more over an applicable reference period, or eligible participants who were actively engaged in the business for 80 hours or more in February 2020 and provide a declaration to that effect.

Who gets paid the lower rate?

The lower rate applied to remaining eligible employee’s and eligible business participants whose total hours are less than 80 hours for the employer over an applicable reference period.

The Commission has the power to determine by legislative instrument, a method for identifying if employees qualify for the higher rate, where the total hours are not readily available.

What is the reference period?

Following are the options that relate to the 28-day reference period, to be used in assessing hours worked:

• 1 March 2020: being the 28 days which finish on the last day of the last pay cycle that ended before 1 March 2020; or
• 1 July 2020: being the 28 days which finish on the last day of the last pay cycle that ended before 1 July 2020.

The employer must apply the reference period that results in the higher rate applying, including any alternate reference periods determined by the Commissioner.

The commissioner has issued guidance where the above 28-day reference periods are not considered suitable.

How do I calculate the 80-hour threshold?

The following count toward the 80-hour threshold:

• Actual hours worked
• Hours paid whilst on paid leave
• Hours paid for public holidays

Eligible business participants must be able to reasonably demonstrate the basis on which they have determined the number of hours they were actively engaged in the business for the month of February 2020 and provide a declaration.

Notification Requirements: 

We are still awaiting ATO guidance on notification requirements and appropriate forms.  What we do know:

Employer Nomination:

• If you are in receipt of JK1.0, you will not need to re-enrol for JK 2.0.
• Monthly declarations will still apply, due by the 14^th of each month.

Employees:

• Even if you qualified for JK1.0, you will need to notify the Commissioner of eligible employees and the applicable rate for JK2.0.
• You don’t need to reassess employee eligibility or ask employees to agree to be nominated by you as their employer if you are already claiming for them before 28 September.
• The ATO has not yet confirmed the process or deadline for notifying.
• If you also qualify for extension period 2, you will not need to notify the Commissioner a second time of the applicable rate, as there is no further testing of hours. The reduced rate will automatically apply.
• Employees must be notified within 7 days of advising the Commissioner.

Eligible Business Participants:

• Entities must notify the Commissioner (in the approved form) about whether the higher or lower rate will apply.
• Where applicable, the entity must also notify the EBP within 7 days of notifying the Commissioner.