The NEW JobKeeper Extension Changes

The rules have changed again! Find out here how you might qualify for JobKeeper post-September.

When the Government initially announced the JobKeeper 2.0 rules – for extension of JobKeeper after the initial phase was due to end in September – it was planned to be much more restrictive with respect to which businesses could qualify. Specifically, a small business had to have an actual reduction in revenue of 30% or more in both the June and September 2020 quarters. This is no longer the case.

Furthermore, more employees are now eligible.

So, here are the new rules:

New turnover rule for JobKeeper between October and December (Extension 1)

In the first week of October you need to check if:

• Your actual GST turnover in the September 2020 quarter (July, August and September 2020) had declined by 30% or more compared to the September 2019 quarter.

If so, then you should qualify for JobKeeper over the months of October, November and December.*

The January to March new turnover rule (Extension 2)

In the first week of January you need to check if:

• Your actual GST turnover in the December 2020 quarter (October, November and December 2020) had declined by 30% or more compared to the December 2019 quarter.

If so, then you should qualify for JobKeeper over the months of January, February and March.*

* This is provided that you meet all the other conditions, such as paying employees the minimum required fortnightly payment.

Very importantly, these new rule changes mean that:

• Businesses which did not receive JobKeeper in phase one, might be able to receive JobKeeper in Extension 1 and/or Extension 2.
• Businesses which do not qualify for JobKeeper in Extension 1, might be able to receive JobKeeper Extension 2. So, in the first week of January it is important for almost all businesses to assess their turnover performance for JobKeeper Extension 2 eligibility.

Similar to JobKeeper 1.0 eligibility, there will be alternative tests for some businesses which cannot satisfy the above-mentioned ordinary turnover tests. For JobKeeper 1.0, the types of businesses subject to alternative tests were:

• The business commenced after the comparison period.
• The entity acquired or disposed of a business after the comparison period.
• The entity restructured after the comparison period.
• The entity experienced rapid revenue growth after the comparison period.
• The entity was affected by drought or other declared natural disaster during the comparison period.
• The entity has large irregular variances in revenue which are not cyclical or seasonal.
• A sole trader or a partner in a qualifying small partnership experienced sickness, injury or leave in the comparison period which impacted turnover.

The ATO will announce the alternative tests for JobKeeper 2.0 in due course.

What new employees qualify?

In addition to the turnover test changes, the Government has announced that the test time for employees has changed from 1 March 2020 to 1 July 2020.

This means that for JobKeeper Extension 1 and Extension 2, eligible employees must meet the following conditions:

1. They are currently employed by you (includes stood down or re-hired employees).
2. They were employed by you on 1 July 2020 and either:
   • A full-time employee;
   • A part-time employee; or
   • A casual employee who has been actively working for you since before 1 July 2019 (and not a full-time or part-time employee of another employer).
3. They are at least 16 years of age (at 1 July 2020).
   • If 16 or 17 years of age, then they must either be financially independent or not undertaking full-time study.
4. They are an Australian citizen or holder of a permanent visa living in Australia, or holder of a Special Category (subclass 444) Visa and a tax resident of Australia.
5. You are the only employer receiving the JobKeeper payment in respect to them and they have nominated you by way of an approved form.
6. They are not in receipt of any of these payments during a JobKeeper fortnight:
   • Parental Leave or Dad and Partner Pay from Services Australia; or
   • Workers compensation whilst the employee is not working.

What to do if you need help with JobKeeper.

The JobKeeper rules can be quite complex and in some cases you may need to rely upon the ATO’s discretion to access JobKeeper. To obtain professional assistance from the accountants that brought you the Complete Guide to the JobKeeper Subsidy, contact us on (08) 94275200 or digital@munros.com.au or submit an enquiry here.