The new legislation to extend the JobKeeper scheme has now passed in both houses and received royal assent. With the treasurer releasing a legislative instrument that can be accessed here.
In summary, the instrument sets out the decline in turnover test for the extension of Jobkeeper. There are now also two tiered payment rates.
The legislation also contains provisions for businesses that have changed hands, business participants and religious practitioners.
Jobkeeper Extension 1.
- This extension will run from 28th of September 2020 to the 3rd of January 2021.
- You will need to show your actual turnover has declined in the September 2020 quarter, compared to the September 2019 quarter.
- You will need to have satisfied the original decline in turnover test.
- The rates for this extension period are:
Tier 1: $1,200 per fortnight (before tax)
Tier 2: $750 per fortnight (before tax).
Jobkeeper Extension 2.
- This extension will run from 4th of January 2021 to 28th March 2021
- You will need to show your actual turnover has declined in the December 2020 quarter, compared to the December 2019 quarter.
- You will need to have satisfied the original decline in turnover test.
- You can be eligible for the 2nd extension even if you were not eligible for the 1st extension.
- The rates for this extension period are:
Tier 1: $1,000 per fortnight (before tax)
Tier 2: $650 per fortnight (before tax).
Tiers
Tier 1: eligible employees who worked for 80 hours or more in the four weeks of pay periods before 1st March 2020 or 1st July 2020 and eligible business participants who were actively engaged in the business for 80 hours or more in February and provide a declaration to that effect.
Tier 2: any other eligible employees and eligible business participants.
Decline in Turnover
The actual decline by the specified shortfall (15%, 30% or 50%) compared to last year’s quarter. This is different to the original test, where you used your projected GST Turnover.
What doesn't change
- You don’t need to re-enrol if you have already enrolled in the original jobkeeper.
- You don’t need to re-asses eligibility if they are already being claimed.
Alternative Eligibility Test
- Not yet released, however it will be available in some circumstances, and will be similar to the original alternative decline in turnover test.