The economic impact from the situation in Victoria has prompted the government to revise the second phase of the JobKeeper program announced a couple of weeks ago. The revamp is estimated to add a further $15 billion to the cost of the program.
The current JobKeeper program will still continue unchanged until its completion on 27 September.
The extension is still for an additional six-months, from 28 September 2020 to 28 March 2021, divided into two periods; the 1st extension period of seven fortnights, and the 2nd extension period of six fortnights. The turnover decline thresholds also remain. For simplicity, we will refer to the 30% threshold.
The main changes are:
Here's a summary of the revamped JobKeeper 2.1:
*For eligible employees whom both periods apply, use the period with the higher number of hours.
A business might qualify for the 1st extension period, but not the 2nd (because December 2020 quarter turnover did not actually decline by 30% or more). Similarly, a business might not have qualified for the current JobKeeper program up to now, but is now predicted to suffer the 30%+ turnover decline in the September quarter. That business can enrol in the current JobKeeper program for the current fortnight onwards, and for JobKeeper 2.1 if the September quarter’s turnover shows an actual decline of 30%+.
For an Eligible Business Participant, the higher of lower rate is based on weekly average number of hours “actively engaged” in the business back in February. That presents issues for supporting the number of hours, as there are no payroll records.
The Commissioner will have a discretion to set out alternative tests to measure an employee’s working hours in that February or June period where they were out of the ordinary (eg, the employee was on leave, commenced employment during that period, etc).
There will be details to clarify upon the JobKeeper Rules being amended by the Treasurer to reflect JobKeeper 2.1 - revamped. But for now, to get a preliminary idea of whether your business will qualify for the 1st extension period of JobKeeper 2.1, you’ll need to compile the following information:
The first fortnight for JobKeeper 2.1 ends on Sunday, 11 October. Between now and then, with the above information, and a few details ironed out in due course, you will be able to determine the following:
Talk to Grantley Stevens or your trusted Nexia Edwards Marshall Advisor about how we can help you determine whether you qualify for the 1st extension period of JobKeeper 2.1, and what you need to do.
The material contained in this publication is for general information purposes only and does not constitute professional advice or recommendation from Nexia Edwards Marshall. Regarding any situation or circumstance, specific professional advice should be sought on any particular matter by contacting your Nexia Edwards Marshall Adviser.