Jobkeeper Extension (v 2.0)
JobKeeper Extension begins today, 28th September, 2020.
This extended version of Jobkeeper has often been referred to as Jobkeeper 2.0, but its formal name is Jobkeeper Extension.
It picks up right where the first round of JobKeeper left off, on 27th September 2020. The JobKeeper Extension comes into play on 28th September.
Overview
To receive payments under JobKeeper Extension you need to re-apply (or complete a new enrolment).
PLEASE NOTE – IT IS NOT AN AUTOMATIC ROLLOVER OF EXISTING JOBKEEPER ARRANGEMENTS – THERE IS MORE YOU NEED TO DO!
You will also have to prove that turnover for the Sept quarter 2020 was at least 30% less than the Sept quarter last year (2019).
You then need to make a Declaration to the ATO.
If the quarter ending 30 September 2019 is not an appropriate comparison period you may be able to use an alternative test, from the ATO.
Below is an overview of the revised JobKeeper rules. We can help you review your eligibility and make the necessary declarations to the ATO on your behalf.
Are you eligible?
How does your turnover for the 2020 September quarter compare with the 2019 September quarter - is it down by 30%?
If turnover is not down by 30% or more you will not be eligible for JobKeeper payments for pay periods commencing 28 September onwards.
You will need to advise the ATO that you are no longer claiming JobKeeper. This is done via your payroll software. If you’re not sure how to do this please let us know and we will help you update your software and advise the ATO.
If your turnover is down by 30% or more you will need to answer the following questions:
Is my business eligible? Essentially this is about the fall in turnover test, though there are some other factors to consider.
Are my employees eligible? (Am I eligible?) If you and / or your employees are currently receiving JobKeeper you will most likely still be eligible. However, it’s still important to re-check eligibility.
What JobKeeper rate applies?
The JobKeeper payment rate will depend on the number of hours worked by you and your employees over specific weeks in March and June.
The two rates are $1,200 per fortnight and $750 per fortnight.
We can assist you to assess your eligibility and the relevant Jobkeeper rate. Our fee for this is $125 + gst.
Please let us know if you would like our assistance with this.
Increased ATO Compliance Checking
Please also be aware that the criteria for receiving JobKeeper has been tightened, so it’s important to have evidence to back up your ongoing claim.
This includes:
Evidence of your decline in turnover supported by your BAS.
Evidence of hours worked by you/your employees to support the amount of Jobkeeper payments you are claiming.
For Sole Traders and Eligible Business Participants, if the tier 1 rate applies to you as an eligible business participant, you must keep records. These records will show how you made your assessment of the hours that you were actively engaged in your business. These records might include business diaries, appointment books, hours billed, invoices issued, records prepared for other business or statutory purposes.
This does not mean you shouldn’t claim, just that you need to be sure you have evidence to support your claim.
Note: There are penalties for making a false or misleading declaration.
As you can see, there is a lot to this.
Let me know if you need a hand.
Peter
