Extension Period 2 will run from 4 January 2021 to 28 March 2021.
To qualify for extension 2, you will need to show that your actual GST turnover has declined 30% in the December 2020 quarter relative to the corresponding quarter ending 31 December 2019, this is best assessed through your BAS. You can be eligible for JobKeeper extension 2 even if you were not eligible for JobKeeper extension 1.
In order to qualify for the extension we must reassess your eligibility and report this to the ATO, you cannot receive the ongoing payment without reporting your 2020 December quarter BAS figure to the ATO.
The easiest way to assess your eligibility is to complete and lodge your 2020 December quarter BAS or have us do this for you. We will then compare this to your 2019 December quarter BAS figure to assess decline for eligibility purposes.
The rates of payment will change
For JobKeeper fortnights 21 and 22 only (from 4 January 2021 and 18 January respectively), the ATO are allowing employers until 31 January 2021 to meet the wage condition.
The following rates apply for JobKeeper Extension period 2 from 4 January 2021 to 28 March 2021, :
Tier 1 rate: $1,000 per fortnight (before tax)
This rate applies to:
- Eligible employees who worked for 80 hours or more in the reference period
- 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: $650 per fortnight (before tax)
This rate applies to:
- any other eligible employees and eligible business participants who worked less than 80 hours in the reference period
The reference period for employees is the four weeks of pay periods that finished immediately before either 1 March 2020 or 1 July 2020. Employees must meet all previous eligibility criteria.
The hours include actual hours worked, and any hours for which the employee received paid leave, including annual, long service, sick, carers and other forms of paid leave, or paid absence for public holidays.
What do Businesses need to do?
- Complete and lodge your 2020 December quarter BAS
- Advise Hooper Accountants if you would like us to reassess your eligibility
- In order to qualify for the extension we must reassess your eligibility
- If you are a newly eligible business, or think you may be, you will need to enrol (we can assist with this).
- If you are currently claiming JobKeeper, keep paying your eligible employees
- Confirm if the tier 1 or tier 2 rate applies to each of your eligible employees and/or eligible business participants
- Notify us (if we manage your JobKeeper application) or the ATO and your eligible employees and/or eligible business participants what payment rate applies to them
- During JobKeeper extension 2 – ensure your eligible employees are paid at least:
$1,000 per fortnight for tier 1 employees
$650 per fortnight for tier 2 employees
- Complete your monthly declarations, which we lodge on your behalf
Important Note: If you are registered for GST and have outstanding BAS statements, you should lodge your BAS for the December 2019 quarter as soon as possible (or for equivalent months, if you report monthly). Un-lodged BAS statements may hold up your application for JobKeeper Payments under the JobKeeper extension.
What Doesn’t Change?
To claim for fortnights in the JobKeeper Extension 2:
- You don’t need to re-enrol for the JobKeeper extension if you are already enrolled for JobKeeper for fortnights before 28 September.
- 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
- 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.
New JobKeeper participants
The JobKeeper scheme will remain open to new participants, provided they meet the eligibility requirements for the relevant period.
If you have any questions relating to the JobKeeper extension, contact our team of JobKeeper specialists today.