Key points:

All employers claiming JobKeeper payments from 4th January 2021 will need to reassess their eligibility again and prove that their turnover has declined based on actual figures.
Some businesses that did not qualify previously for JobKeeper payments may find that they now qualify for the new JobKeeper payments.
The final instalment of JobKeeper runs for the period 4 January 2021 to 28 March 2021.

Businesses claiming JobKeeper will need to reassess their eligibility

You will need to demonstrate that your ACTUAL GST turnover (as reported on your Business Activity Statement) for the December 2020 quarter has decreased by the relevant amount when compared to the corresponding December 2019 quarter.

The decline in turnover test remains the same as the existing rules, being:

Entities with turnover greater than $1 billion – 50%.
Entities with turnover less than $1 billion – 30%.
ACNC registered charities (excluding schools and universities) – 15%.

Please note the ATO have released alternative tests that can be applied should you not pass the initial eligibility criteria.

Payment rates

The rate of the JobKeeper V2 payment in each extension 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 2 rates:

Tier 1 Rate

Applies to:

eligible employees who worked 80 hours or more in the 4 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 2020 and provide a declaration to that effect

The rate is:

$1,000 per fortnight: 4 Jan 2021 to 28 Mar 2021

Tier 2 Rate

Applies to:

any other eligible employees and eligible business participants

The rate is:

$650 per fortnight: 4 Jan 2021 to 28 Mar 2021

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

Eligible employees

The existing employee eligibility requirements have not changed EXCEPT for the eligibility date of 1 July 2020 (previously 1 March 2020), and are as follows:

currently employed and were employed by the employer at 1 July 2020;
full time, part time, or long term casuals;
at least 18 years of age or aged 16 to 17 years and independent or not undertaking full time study;
an Australian resident; and
not in receipt of a JobKeeper payment from another employer.

Eligible business participants

Sole traders and some other entities (such as partnerships, trusts or companies) may be entitled to the JobKeeper Payment scheme under the business participation entitlement. A limit applies of one JobKeeper payment per fortnight for one eligible business participant. Sole traders, one partner in a partnership, one beneficiary of a trust, and one director or shareholder of a company may be regarded as an eligible business participant.

What hasn’t changed

To claim for fortnights in the JobKeeper extension 1 or 2:

You don’t need to re-enrol for the JobKeeper extension if you are already enrolled for JobKeeper for fortnights before 28 September 2020.
You don’t need to reassess employee eligibility or ask employees to agree to be nominated by you as their eligible employer if you are already claiming for them before 28 September 2020.
You don’t need to meet any further requirements if you are claiming for an eligible business participant, other than those that applied from the start of JobKeeper relating to:
- holding an ABN, and
- declaring assessable income and supplies.

Obligations and risks for claiming JobKeeper

If a wrong claim is made or if the ATO in the future decides that you were ineligible to be claiming JobKeeper payment, the ATO will require you to repay them any JobKeeper payments that you have received plus penalties and interest.

The key risks to you as the employer include:

The employer certifies the facts provided to the ATO and the JobKeeper claim made.
The employer receives significant JobKeeper payments over a 6 month period.
If the employer makes a mistake and is found to be ineligible by the ATO (for example, its turnover is not down by 30%), then they may have to repay all amounts received back to the ATO.
An employee ceases to be eligible if they cease employment during the life of this JobKeeper scheme.

Also, the ATO requires you to keep all records in relation to your JobKeeper claim for a 5 year period.

Further help:

If you have any questions about claiming JobKeeper, feel free to contact Marsh & Partners. You can reach us on (07) 3023 4800 or at mail@marshpartners.com.au.

You can find out more about working with Marsh & Partners here. As your Absolute.Account.Ability partner we’re on a mission to make your business life better. We’ll help you set goals for your business, devise an Action Plan to make them happen and meet with you regularly to ensure you stay on track.

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