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JobKeeper 2.0 is here!

Jobkeeper 2.0 Update – Important Changes

 
As of the 28th September 2020, the Australian Government has implemented the second phase of its Jobkeeper Scheme, which includes new rules. Following on from the original scheme, Jobkeeper 2.0 will run for two consecutive extension periods, until 28 March 2021. Extension period 1 will run from 28 September 2020 to 3 January 2021 and Extension period 2 will run from 4 January 2021 to 28 March 2021.
 

New decline in turnover test

  • From 28 September 2020 new and previously enrolled employers will need to retest their eligibility based on their actual GST turnover for the comparative period.
  • Decline in Actual GST Turnover in the September 2020 quarter by at least 30% for most SME businesses compared to the same period in 2019.
  • Entities registered for GST must use the same method as their BAS reporting to calculate their current GST turnover. The ATO advises that for most businesses registered for GST, the actual GST turnover will be equal to G1 minus 1A.
See for more info ATO - Basic Test
 

New payment rates

  • All previous and newly eligible employees will be categorised as Tier 1 or Tier 2 depending on the average hours worked during the reference period. Business participants are required to measure their active engagement in the business.
  • An alternative reference period may be used if the 28-day period does not reflect the employee’s typical hours or they started the work during the reference period.
  • Employers must also notify their employees in writing within seven days after notifying tax office the relevant rate applicable for each employee.
  • The ATO is allowing employers until 31 October 2020 to meet the minimum eligible payments for the fortnights starting 28 September 2020 and 12 October 2020.

Tier 1 - Pay rate of $1200 per fortnight
80+ hours worked during employee reference period or business participant reference period*

Tier 2 - Pay rate of $750 per fortnight
< 80 hours worked during employee reference period or business participant reference period*

* Employee Reference Period: 28 days prior to 1 March 2020 or 1 July 2020
   Business Participant Reference Period: Month of February 2020

See for more info ATO - Payment Rates
 

Alternate Tests


If your business does not satisfy the Basic Test, please contact us to find out if you are eligible to apply an Alternative Test to be eligible for Jobkeeper 2.0.

See for more info ATO Alternative Test
Open JobKeeper fact sheet to download, print or share

  If you have any further questions or require assistance, please contact your trusted Ashfords advisor on 03 9551 2822.

Please note: the information contained in our articles is general in nature and does not address the circumstances of any particular individual or entity. We endeavor to provide accurate and timely information, however cannot guarantee that it will continue to be accurate in the future. Always obtain appropriate professional advice for your circumstances . For more information or tailored advice, please contact your Ashfords advisor.


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