The Federal Government announced on the 21 July 2020, that it is extending the JobKeeper program for eligible businesses and not-for profit charities by a further 6 months to 28 March 2021.
- Paid at a reduced payment rate over two JobKeeper extension periods, 28 September 2020 to 3 January 2021 and 4 January 2021 to 28 March 2021.
- Payment rate will depend on the number of hours worked by the eligible employee or hours actively engaged by the small business participant.
- Payment rate will depend on which extension period applied.
- Decline in turnover will be based on actual GST turnover not projected GST turnover.
- Need to satisfy decline in turnover over both Business Activity Statement (BAS) quarters relative to the comparative quarters in 2019.
To be eligible, businesses and not-for-profit charities will still need to satisfy the following decline in turnover tests. However, you will need to show you suffered a decline in turnover using your actual GST turnover rather than projected GST turnover.
The BAS‘s lodged will be used as the assessment for eligibility in decline in turnover.
If your business or not-for profit charity does not meet the decline in turnover for the extension period, this does not affect your eligibility for the program prior to 28 September 2020.
Other eligibility requirements remain unchanged.
1 April 2020 - 27 September 2020 (Original JobKeeper period)
28 September 2020 - 3 January 2021 (First JobKeeper Extension period)
4 January 2021 - 28 March 2021 (Second JobKeeper Extension period)
JobKeeper Payment Dates
The payment rate is reduced from 28 September 2020 and a further on 4 January 2021.
First JobKeeper Extension Period - 28 September 2020 - 3 January 2021
Note: You will need to satisfy decline in turnover in both the June and September 2020 quarters in comparison to the June and September 2019 quarters.
Second JobKeeper Extension Period - 4 January 2021 - 28 March 2021
Note: You will need to satisfy decline in turnover in each of the June, September and December 2020 quarters relative to the June, September and December 2019 quarters.
The Commissioner of Taxation will have the discretion to set out alternative tests in specific circumstances where it is not appropriate to compare actual turnovers in 2020 with actual turnover.
The JobKeeper payment will continue to remain open to new recipients, provided they meet existing eligibility requirements and the addition turnover tests during the extension period.
The ATO have advised there will be further guidance materials issues, we will of course keep you updates.
If you have any questions or require assistance with this or any of the Government support packages, please contact your knp advisor or call our knp BusinessKeeper Hotline: 1 300 567 765 (1 300 knp pnk).