September 2020– Jobkeeper 2.0

• Jobkeeper rates
• Extension Period 1 (28 September to 3 January 2021) (EP1)
• Extension Period 2 (4 January to 28 March 2021) (EP2)

Jobkeeper 2 different rates

• Full rate
• Reduced rate

An employer will be paid at the full rate if in the 4 weeks of pay periods before 1 March 2020 the employee was working in the business for 20hours or more a week oln average.

A Sole Trader or EBP will also be paid at the full rate in the EBP was actively engaged in the business for 20 hours or more per week on average in the month of February 2020

If the employee or EBP did not achieve the 20 hour average the JKP will be made at the reduced rate

EP 1 Full rate $1,200         Reduced rate  $750

EP 2 Full rate $1,000         Reduced rate $650

Jobkeeper 2.0

Importantly – unlike the existing Jobkeeper scheme the decline in turnover calculations above are based on ACTUAL turnover

All turnover comparisons are made on a quarterly basis – no monthly comparisons under Jobkeeper 2.0

Extension Period 1 –Re-satisfying the decline in turnover test -Unlike the previous Jobkeeper rule  – the decline in turnover test must be satisfied

That is your business turnover for EP 1 your turnover for the June quarter must be at least 30% less that its turnover for the June 2019 quarter; and

Actual turnover for the September 2020 quarter must be at least 30% less that its GST turnover for September 2019 quarter

Extension Period 2 –

Actual GST turnover for the June 2020 quarter must be at least 30% less than its GST turnover for the June 2019 quarter

Actual GST turnover for the September 2020 quarter must be at least 30% less than its GST turnover for the September 2019 quarter

Actual GST turnover for the December 2020 quarter must be at least 30% less than its GST turnover for the December 2019 quarter

Entitlement to claim for Extension Period 1 does not automatically give entitlement to Extension Period 2

If your business does not meet the decline in turnover test for EP1 it is automatically ineligible to claim Jobkeeper for EP2.

An employer or Sole Trade or eligible business participant that did not make a claim under the existing Jobkeeper scheme is NOT prevented from making a claim under Jobkeeper 2.0 (assuming the relevant decline in turnover tests are satisfied)

(For those not registered for GST the rules are the same – just ignore references to GST)

It is clear that there is a requirement for ongoing close monitoring of your businesses financial status in order to ensure entitlement to Jobkeeper2.0 – and make ongoing applications declarations etc.

Way back in March when this all started I charged a modest fee ‘to manage your Jobkeeper claims from month to month to ensure ongoing payments’ not really expecting that this situation would go beyond Sept/Oct 2020

Jobkeeper 2.0 will require ongoing additional activities and monitoring to ensure compliance beyond the scope of that originally planned for.

It is my hope the you feel that you have benefited from the flat fee of $275 and appreciate the value this offered.

Moving forward – if your business is eligible for EP1 and / or EP 2 will  require an ongoing plan to review and assess quarterly turnover, prepare relevant declarations for authorisation and lodging the declarations direct with ATO on your behalf.

As is typical of bennetts tax & bas service– I hope to provide good value–in anticipation that assessing quarterly entitlement, making application and declarations etc will occur quarterly – not monthly.The fee will be $180 -alternatively you may choose to be invoiced for time taken each quarter.

If you have any queries regarding the fee or any other matter in this newsletter, please contact me via phone or email to discuss.

As always, stay COVID safe!