30th September 2020
JobKeeper 2.0 starts from 28 September 2020
The first tranche of JobKeeper ends on 27 September 2020. To receive JobKeeper payments after this date will require participants to reassess their eligibility and prove an actual decline in turnover. You need to determine the following:
- Is my business eligible?
- Am I and/or my employees eligible?
- What JobKeeper rate applies?
JobKeeper payments 28 Sept to 3 January 2021
- To be eligible, your business needs to have experienced a 30% decline in actual turnover in the September 2020 quarter (July, August & September) when compared with the September 2019 quarter.
- Not-for-profits need to have experienced a 15% decline in turnover in the same time period.
- If your business commenced after 1 July 2019, and therefore you do not have a full comparison period available, you can apply the alternative tests which include:
- Calculating the average monthly turnover since the business commenced until 30 June 2020, multiplying that by 3 and comparing that with the September 2020 quarter turnover
- Calculating the actual turnover for Dec, Jan and Feb, that is, the three months immediately before 1 March 2020, and comparing that with the September 2020 quarter turnover.
Calculating GST Turnover
Business that are registered for GST must use the same method that is used for GST reporting. That is, if you are registered for GST on a cash basis then you must calculate your turnover on a cash basis. Entities that are not registered for GST can choose to calculate GST on either a cash or accruals basis but must be consistent in the method they choose.
Turnover includes both taxable and GST-free income but excludes input taxed supplies such as residential rental income, interest and dividend income. It also excludes JobKeeper payments, the ATO cash flow boost and other State-based grants.
Revised JobKeeper Payments
JobKeeper payments will be reduced to $1,200 per fortnight per person or $750 per fortnight for staff who worked less than 20 hours per week, on average, in your business in February 2020 or June 2020 if they were employed after 1 March 2020.
To be eligible, employers must have paid the eligible recipient at least the applicable JobKeeper payment for the relevant fortnight. The first fortnight for the revised JobKeeper payments starts 28 September 2020.
JobKeeper payments will remain open to new recipients provided they meet the criteria. Eligibility for one JobKeeper period does not entitle you to, or exclude you from, payments in another period. Each eligibility period is addressed separately. That is, there might be businesses that qualified for the first tranche of JobKeeper, don’t qualify for the second tranche but qualify for the third.
So what do you need to do?
- Between 1 and 14 Oct 2020 – complete the usual monthly declaration with the ATO so you can be reimbursed for the September fortnights.
- Between 1 and 31 October 2020 – check and submit the business actual decline in turnover online with the ATO.
- Between 1 and 14 November 2020 – complete a monthly declaration and advise the ATO what payment rate is being claimed for each eligible employee.
We can make the above declarations on your behalf if you like. A nominal fee will be charged.
Should you have any questions, please don’t hesitate to contact me
Jac and the Cassell & Co Team
