Extension of the JobKeeper Payment

The JobKeeper Payment extension has now been registered for eligible businesses and not-for-profits until 28 March 2021. There would be opportunities as follows:

· Nominate employees who did not qualify under Job Keeper 1 may now be eligible including re-hiring of employees.

· Taxpayer who did not meet criteria earlier may qualify for period either of the next two quarters.

Whilst the Turnover drop % remain the same at 30% and 50% respectively, key changes include as follows:

1. Turnover measures will now be based on Actual Quarterly reports lodged with the ATO for September 2020 quarter vs September 2019 Quarters for the period 28th September 2020 to 03rd January 2021 and December 2020 quarter vs December 2019 quarter measure for period 04th January to 28th March 2021 unless alternative tests apply.

2. Payment Rates: The changes take effect from 28 September 2020 and will see the introduction of Tier 1 and Tier 2 JobKeeper Payment rates for the periods:

• Extension Period 1: 28 September 2020 to 3 January 2021
• Extension Period 2: 4 January 2021 to 28 March 2021.

JobKeeper Payment rates for employees will change based on the total hours worked during their reference period.

Extension Period 1

- Tier 1 - $1,200 per fortnight (before tax) for eligible employees who worked for 80 hours or more in the four weeks of pay periods before either 1 March 2020 or 1 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 - $750 per fortnight (before tax) any other eligible employees and eligible business participants.

Extension Period 2

- Tier 1 - $1,000 per fortnight (before tax) for eligible employees who worked for 80 hours or more in the four weeks of pay periods before either 1 March 2020 or 1 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 - $650 per fortnight (before tax) any other eligible employees and eligible business participants.

To claim JobKeeper after 28 September 2020, the business must:

• nominate the rate you are claiming for each eligible employee and business participant to the ATO and their employees within the time frame.
• demonstrate a decline in actual GST turnover relative to a comparable period.

Please feel free to contact your RCB Advisors’ team member for any further assistance.

Source: Australian Taxation Office

https://www.ato.gov.au/General/JobKeeper-Payment/JobKeeper-extension-announcement