JobKeeper 2.0 Extension 1 Fortnights Update

Upcoming JobKeeper 2.0  Extension 1 Fortnights ( for eligible organisations)

JobKeeper Fortnight Period relating to each JobKeeper Fortnight Employees are paid on or before *
19 7 December – 20 December 20 December
20 21    December – 3 January 2021 4 January 2021 ( Updated  date)

*You don’t have to change your pay cycle to the same as JobKeeper fortnight – as long as you pay any JobKeeper eligible employees up to at least the appropriate Tier level before tax. This must be paid within the above JobKeeper fortnights.

If you usually pay your employees less frequently than fortnightly, the payment can be allocated between fortnights in a reasonable manner.

 

Monthly Declaration Periods

Each month you must make a declaration to the ATO in order to be reimbursed for the JobKeeper payments made to staff in the previous month. You need to do this between the 1st and 14th of the month (for example, to be reimbursed for JobKeeper payments made in September you need to complete your declaration by 14 October).

Month Monthly Declaration Period
November 1 December  – 14 December
December (Last of JK2 Ext 1) 1 January – 28 January (extended deadline)

 

JOBKEEPER 2.0 Extension 2  – Will you be Eligible ?…  NO NEED TO PANIC JUST YET

JobKeeper 2 Extension 2 start from 4 January 2021

The JobKeeper 2.0 extension 2 is for the period 4 January  to 28 March 2021.

Eligibility:

You will need to demonstrate that your actual GST turnover * has fallen in the December 2020 quarter( October, November , December 2020) relative to a comparable period ( generally the corresponding quarter in 2019 , although some alternate decline tests may apply)

Even if you were not eligible for JobKeeper 2.0 Extension 1 (28 Sept to 3 January ), but met eligibility criteria for and  were eligible for JobKeeper 1 (30 March to 27 September 2020) , you could be eligible for JobKeeper 2 extension 2 if meet the decline test. You may also be eligible even if you weren’t eligible for JobKeeper 1 & JobKeeper 2 Extension1 ( refer ato.gov.au  for more details)

To assist you track your eligibility use the below – this may help you assess if you may or may not  be eligible

 

Month

2019 Actual GST Turnover

2020 Actual GST Turnover
October
November
December
Total A: B:

 

Decline in Turnover   Turnover[ (A- B) \ A] x 100 = …..    ( if 30% or greater than  -PASSED TEST)

[(  A ……………….. – B………………………..] )\ A……….……………      ]*100    = ……………………….

You may be able to use an Alternate test if don’t PASS this test – Refer ATO                                            –

 

** The ATO has extended the dates  by which any JobKeeper 2.0 Extension 2  payments to eligible employers are made

By eligible employers for the month of January only  . You have until the 31 January to pay any topups ( if any ) for the period 4 January to 31 January 2021.

So wait until you are sure you are eligible before doing any backpay/topups .

Also Note that the Tier rates for eligible employees  from 4 January are at a reduced rate ( Tier 1 $1000 ; tier 2 $ 650)

 

Upcoming JobKeeper 2.0  Extension 2 Fortnights ( for eligible organisations)

JobKeeper Fortnight Period relating to each JobKeeper Fortnight Employees are paid on or before *
21  4 January 2021  – 17 January  2021

31 January 2021

22 18 January 2021 – 31 January 2021

 31 January 2021

 

For more information, visit the Australian Taxation Office website here.

CMSolutions Eligibility Guides for Employees and Employers for JobKeeper 2.0 Extension 2 will be updated and released in the coming weeks

 If you have any question lease contact CMSolutions on 07 3852 5177 or email support@cmsolutions.org.au.

Your trusted partner, providing the safety net in the tough times and peace of mind at all time

For more eligibility details refer to link.

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