Will you be entitled to JobKeeper 2.0? Here's what we know so far... — Brown Wright Stein Lawyers | Sydney Lawyers - Tax Specialist Lawyers, Corporate & Commercial Lawyers..

The JobKeeper payment measure, first announced on 30 March 2020, was due to end on 27 September 2020.

On 21 July 2020, the Commonwealth Government announced that the JobKeeper measure will be extended by a further period of 6 months. Dubbed "JobKeeper 2.0", the 2-tiered, watered-down JobKeeper extension will apply from 28 September 2020 to 28 March 2021.

While the Legislative Instrument to give effect to the announcement of JobKeeper 2.0 has not been registered yet, Treasury has published a fact sheet to provide insight into how JobKeeper 2.0 will operate.

When JobKeeper 2.0 was first announced on 21 July 2020, entities wishing to receive JobKeeper payments post 27 September 2020 would have had to be reassessed from 28 September 2020 based on their GST turnover for the June 2020 and September 2020 quarters, and be further reassessed from 4 January 2021 based on their GST turnover for the June 2020, September 2020 and December 2020 quarters.

In light of the current situation in Victoria, on 7 August 2020 the Government announced further adjustments to JobKeeper 2.0. Entities will now only be required to have a decline in GST turnover for the quarter preceding the applicable extension period.

In addition, the updated Treasury factsheet following the 7 August 2020 announcement states that from 3 August 2020, the JobKeeper wage subsidy will now be available for employees employed as of 1 July 2020, where they meet other eligibility requirements. Importantly, the factsheet states that this change will apply both to the current JobKeeper measure (i.e. the scheme that is in place until 27 September 2020) and JobKeeper 2.0.

The key aspects of JobKeeper 2.0 are:

Employers currently eligible for JobKeeper payments will have to be reassessed from 28 September 2020 and further reassessed from 4 January 2021 in order to benefit from JobKeeper 2.0.
The new decline in turnover test will now be based on actual GST turnover as opposed to the current projected GST turnover test.
For JobKeeper fortnights falling within the period of 28 September 2020 to 3 January 2021 (First Payment Extension Period), eligible employers will receive $1,200 per fortnight for all eligible employees who worked 20 hours or more, and $750 per fortnight for all eligible employees who worked less than 20 hours a week in the 4 weeks of pay periods prior to 1 March 2020.
For JobKeeper fortnights falling within the period of 4 January 2021 to 28 March 2021 (Second Payment Extension Period), eligible employers will receive $1,000 per fortnight for all eligible employees who worked 20 hours or more, and $650 for all eligible employees who worked less than 20 hours a week in the 4 weeks of pay periods prior to 1 March 2020.

Eligibility

From 28 September 2020, entities wishing to receive JobKeeper payments under JobKeeper 2.0 will have to be reassessed under a new decline in turnover test, as well as meet the other eligibility requirements for the JobKeeper payment: that is, employers must still have carried on business in Australia as at 1 March 2020, and non-profit bodies must have pursued their objectives principally in Australia as at 1 March 2020.

An entity must satisfy the new decline in turnover test based on its actual GST turnover to be eligible for JobKeeper payments between 28 September 2020 to 3 January 2021 (the First Payment Extension Period), and be further reassessed in order to be eligible for JobKeeper payments between 4 January 2021 to 28 March 2021 (the Second Payment Extension Period).

The table below summarises the new decline in turnover test to be satisfied for the First Payment Extension Period and the Second Payment Extension Period:

The prescribed percentage remains unchanged, and is:

30% for an entity with an aggregated turnover of less than $1 billion;

50% for an entity with an aggregated turnover of $1 billion or more; and
15% for an ACNC registered charity.

employee eligibility

From 3 August 2020, the JobKeeper wage subsidy will now be available for employees employed as of 1 July 2020, where they meet other eligibility requirements. Previously, it was necessary that the employees be employed at 1 March 2020. Other eligibility requirements for employees, business participants and religious practitioners remain unchanged.

The rate of JobKeeper payments for the eligible employee, business participant or a religious practitioner will be assessed on the:

higher of the average hours worked per week during the 4 weeks of pay periods prior to 1 March 2020 or 1 July 2020 (the Assessed Period) for a person that was eligible as a result of their 1 March 2020 employment; or
the average hours worked per week during the 4 weeks of pay periods prior to 1 July 2020 (the Assessed Period) for a person that was eligible as a result of their 1 July 2020 employment.

The Commissioner will be given a discretion to set alternative tests where the February or June hours were not usual, for instance where an employee was on leave, or volunteering to assist with the bushfires. However, the details of these alternative tests are not known at this stage.

Between 28 September 2020 and 3 January 2021, eligible entities will be entitled to:

$1,200 per JobKeeper fortnight for each eligible employee who worked 20 hours or more during the Assessed Period; or
$750 per fortnight for all eligible employee who worked less than 20 hours a week during the Assessed Period.

Between 4 January 2021 and 28 March 2021, eligible entities will be entitled to:

$1,000 per JobKeeper fortnight for each eligible employee who worked 20 hours or more during the Assessed Period; or
$650 per fortnight for all eligible employee who worked less than 20 hours a week during the Assessed Period.

Treasury has indicated in its factsheet that there may be alternative tests where an eligible person had unusual hours in the Assessed Period. However, the details of these alternative tests are not known at this stage.

Similar to the current JobKeeper measure, an employer must satisfy the wage condition by paying the employee an amount at least equal to the JobKeeper Payment for each fortnight in employment related remuneration (eg. salary, wages, allowances, bonuses and salary sacrificed superannuation contributions).

For further information and assistance, please contact our tax team.

The material in this article was correct at the time of publication and has been prepared for information purposes only. It should not be taken to be specific advice or be used in decision-making. All readers are advised to undertake their own research or to seek professional advice to keep abreast of any reforms and developments in the law. Brown Wright Stein Lawyers excludes all liability relating to relying on the information and ideas contained in this article.