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JobKeeper Extension 2 Update

Dec 22, 2020 | Accounting & Tax, Coronavirus, News

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With the first round of JobKeeper Extension now ended in December 2020, the ATO has released updated information on the JobKeeper Extensions 2 for January to March 2021

December Monthly Declaration

The ATO has extended reporting dates for below fortnights:

  • Fortnight 18 (23 November 2020 – 6 December 2020): due 28 January 2021
  • Fortnight 19 (7 December 2020 – 20 December 2020): due 28 January 2021
  • Fortnight 20 (21 December 2020 – 3 January 2021): due 28 January 2021

What’s stayed the same?

  • Employers will still need to meet a 30% decline in the turnover test (further information below)
  • For employees to be eligible, they will need to meet the same criteria found here
  • Business Participants will also continue to be eligible and more information on who can be considered a business participant can be found here.

What’s changed?

The basic test will now be based on fixed periods being:

  • Extension Two: 30% decline in turnover from December 2019 quarter to December 2020 quarter.
  • The alternative test will only be available in limited circumstances found here.
  • Payments will be tiered depending on the average number of hours worked by the employee:
Dated Amount (if 20 or over hours worked per week) Amount (if under 20 hours worked per week)
Extension Two 4 January – 28 March 2021 $1,000 $650
    • Business Participant payments will also be tiered dependant on the number of hours the individual actively engaged in the business:
    Dated Amount (if 80 or more hours worked in months of February or June 2020) Amount (if less than 80 hours worked in months of February or June 2020)
    Extension Two 4 January – 28 March 2021 $1,000 $650

    What you need to do:

    • If you are eligible for JobKeeper Extension 2, you will need to complete a new Decline in Turnover Test by Sunday 31 January 2021.
    • If you are new to JobKeeper, and you have a decline of 30% in turnover from the December 2019 quarter to the December 2020 quarter, you can enrol in the program to participate in the remaining fortnights.
    • Work out which tier rate applies to your eligible employees and/or Business Participants. Ensure your eligible employees are paid the minimum amounts as set out in the above tables. The ATO has allowed until Sunday 31 January 2021 to meet the above criteria for eligibility in Extension Two of JobKeeper.
    • Notify your eligible employees, Business Participant and the ATO of the relevant tiers for each individual.
    • For our clients already on JobKeeper, we will contact you separately on the next steps.

    Date Published: December 22, 2020 | Last Modified: January 20, 2021