JobKeeper 2.0 - Explainer


EXTENSION FROM 28 SEPTEMBER 2020


The JobKeeper scheme has been extended from 28 September 2020 until 28 March 2021.


There are two separate extension periods. For each extension period, an additional actual decline in turnover test applies and the rate of the JobKeeper payment is different.


The extension periods are:


  • Extension 1: from 28 September 2020 to 3 January 2021


  • Extension 2: from 4 January 2021 to 28 March 2021


THE RATES OF PAYMENT WILL CHANGE


The rate of the JobKeeper payment in each extension period will depend on the number of hours:


  • an eligible employee works, or


  • an eligible business participant is actively engaged in the business.


It will be split into two rates.



 

TIER 1 RATE


This rate applies to:


  • 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 RATE


This rate applies to:


  • any other eligible employees and eligible business participants.


 

Employers and businesses will need to nominate the rate they are claiming for each eligible employee and/or eligible business participant.


Alternative tests for determining the payment rates that apply to an eligible employee, eligible business participant. The ATO will publish more information on the alternative tests when it is available.


The rate of the JobKeeper payment is also different for each extension period.


JOBKEEPER EXTENSION 1


This extension period will run from 28 September 2020 to 3 January 2021.


You will need to show that your actual GST turnover has declined in the September 2020 quarter relative to a comparable period (generally the corresponding quarter in 2019).


See the actual decline in turnover test.


You also need to have satisfied the original decline in turnover test.


However, if you:


  • were entitled to receive JobKeeper for fortnights before 28 September, you have already satisfied the original decline in turnover test


  • are enrolling in JobKeeper for the first time from 28 September 2020, if you satisfy the actual decline in turnover test, you will also satisfy the original decline in turnover test (except for certain universities). You can enrol on that basis.


The rates of the JobKeeper payment in this extension period are:


  • Tier 1: $1,200 per fortnight (before tax)


  • Tier 2: $750 per fortnight (before tax)


JOBKEEPER EXTENSION 2


This extension period will run from 4 January 2021 to 28 March 2021.


You will need to show that your actual GST turnover has declined in the December 2020 quarter relative to a comparable period (generally the corresponding quarter in 2019).


See the actual decline in turnover test.


You also need to have satisfied the original decline in turnover test. However, if you:


  • were entitled to receive JobKeeper for fortnights before 28 September, you have already satisfied the original decline in turnover test


  • are enrolling in JobKeeper for the first time from 28 September 2020, if you satisfy the actual decline in turnover test, you will also satisfy the original decline in turnover test (except for certain universities). You can enrol on that basis.


You can be eligible for JobKeeper extension 2 even if you were not eligible for JobKeeper extension 1.


The rates of the JobKeeper payment in this extension period are:


  • Tier 1: $1,000 per fortnight (before tax)