ATO announces JobKeeper 2.0 rules

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The ATO have today released their guidance on processing JobKeeper 2.0 which has been extended from 28 September 2020 until 28 March 2021.

 If you are an existing BPI client, and you would like us to manage your JobKeeper 2.0 process, please see our fees detailed below.

Job Keeper 2 – Initial Review and Application Scope: $400 + GST (will cover both Extension 1 & 2)

Job Keeper 2 – Payroll Processing Scope: $150 + GST Recurring (Monthly)

Please email jessica@bpi.com.au to receive an Engagement Letter. 

WHATS CHANGED

There are two separate extension periods. For each extension period, an additional actual decline in turnover test applies and the rate of the JobKeeper payment is different.

The extension periods are:

Extension 1 – from 28 September 2020

Extension 2 – from 4th January 2021

To qualify for the first extension period, entities will need to satisfy the new actual decline in turnover test for the quarter ending 30 September.

To qualify for the second extension period between 4 January 2021 and 28 March 2021, the actual decline in turnover test will need to be applied for the quarter ending 31 December 2020.

The rules stipulate that entities are allowed to qualify for JobKeeper for each extension period if they satisfy the actual decline in turnover test for that quarter, even if they did not previously qualify for JobKeeper 1.0.

The payment amount has changed and it will now be split into two tiered rates.  The rate of the JobKeeper payment in each extension period will depend on the number of hours:

  • an eligible employee works, or
  • an eligible business participant is actively engaged in the business.

THE NEW TWO-TIERED PAYMENT RATES.  

For the first extension period running from 28 September 2020 to 3 January 2021, Tier 1 employees or an eligible business participant who worked for 80 hours or more in the 28 day period before either 1 March 2020 or 1 July 2020 will receive $1,200 per fortnight, while Tier 2 employees or eligible business participant (those who work less that 80 hours over four weeks of pay periods) will receive $750 per fortnight.

Employers will need to ensure eligible employees are paid AT LEAST these amounts and will need to nominate the rate they are claiming for each eligible employee and /or eligible business participant.

For the second period running from 4 January 2021 to 28 March 2021, the rate will drop to $1,000 per fortnight for Tier 1 employees and eligible business participant, and $650 per fortnight, for Tier 2 employees and eligible business participant respectively.

 (AccountantsDaily)

WHEN JOBKEEPER 2.0 STARTS…

Some employers will no longer be eligible. There is NO Need to “un-enroll”.  You will simply stop lodging your monthly declarations.

Employers who become eligible (subject to the actual decline in turnover test for September 2020 quarter) will need to enroll with the ATO Online, obtain Employee Nomination Forms, and enroll their employees with STP start codes confirming whether they are Tier 1 or Tier 2.

If you are continuing on from JobKeeper 1.0 to JobKeeper 2.0

  • You will NOT need to re-enroll, however you will need to give the ATO more information relating to your Actual decline in Turnover test in your monthly declaration.
  • You will not need to restart existing employees and you do not need to obtain new Nomination Forms for existing employees.
  • You will need to add any new employees with a STP Start code and obtain Employee Nomination Forms. 
  • You will need to advise the ATO your Tier 1 and Tier 2 employees

NOT AN EXISTING CLIENT?

Lets get you on board and help you increase efficiency, streamline the way you manage your business and become part of the BPI team.

Stay safe and best regards.

The Team at BPI

Our articles are issued as a helpful guide to clients and for their private information. The information provided are general comments and do not constitute or convey advice for personal circumstances. As the situation remains fluid we are committed to providing you with the best support possible

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