JobKeeper extension 1
The basics about the JobKeeper Extension 1
Well here we are, at the end of the Phase 1 of Jobkeeper – it’s hard to believe that almost 6 months on and the world is still under the grips of Covid-19. Hopefully things will start to regain some normality soon.
I am sure you are aware that the Extension 1 of the JobKeeper scheme starts from October onwards. This is an upgraded JobKeeper scheme with some significant changes.
This is the first of the extensions, and covers the period of 1st October to 31st December 2020. A second extension is also in place for the period of 1st January to 31st March 2021, but at a further reduced rate.
In summary, these key changes include:
To be eligible for the next phase, your business must show an actual decline in turnover of 30% or more by comparing the September 2019 BAS with the September 2020 BAS.
The method in which we report this decline is based upon the accounting method used on the lodgement of your BAS.
Projected income cannot be used as a method of showing the turnover decline.
There is an option to compare turnover by using the alternate test. I would advise asking your accountant to assist in the calculations using this method.
Any proceeds of sales of assets are now to be included in the turnover test.
Employees now fall into 2 tiers of payment, and we must show these different wage brackets via new STP wage codes.
Employees who worked 80 hours or more in 4 weeks prior to the 1st March or the 4 weeks prior to the 1st July will receive $1200.00 per fortnight.
Employees who worked 80 hours or less in 4 weeks prior to the 1st March or the 4 weeks prior to the 1st July will receive $750.00 per fortnight.
You will still need to report on a monthly basis turnover figures as part of the registration. I will go through the second extension at a later date – who knows what changes may be made to that before we get there.
An updated blog about Jobkeeper in early December.