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JobKeeper 2.0 fact sheet 1 - overview

On 21 July the Australian Government announced an extension of the JobKeeper Scheme for a further six months to March 2021.

The original JobKeeper Payment (JobKeeper 1.0) will continue until 27 September. JobKeeper 2.0 will run from 28 September to 28 March 2021.

The intention of the JobKeeper Scheme is to support employers maintain a connection with their employees, enabling businesses to reactivate their operation quickly, without having to rehire staff, when the crisis is over.

The JobKeeper Scheme also provides eligible employers with a range of options to temporarily provide greater flexibility around hours of work for retained staff unable to carry out their usual duties called JobKeeper enabling directions.

Key changes

The extension of the JobKeeper Scheme will cover the following periods:

  • 28 September 2020 to 3 January 2021.
  • 4 January 2021 to 28 March 2021.

For each period that you wish to become eligible for JobKeeper 2.0 you will need to:

  • Satisfy the new GST turnover test; and
  • Pay a minimum of the applicable new wage subsidy amount.

The Turnover Test

For each period that you wish to become eligible for JobKeeper 2.0 you must demonstrate an actual decline in GST turnover of more than 30 percent for the relevant quarter, being either one or both of the September and December quarter, compared to the same quarter in 2019.

The amount of the JobKeeper Payment under JobKeeper 2.0

The amount of the JobKeeper Payment has been reduced, and will be further reduced during the extension of JobKeeper. The amount of the wage subsidy will depend on the number of hours worked, on average, by an eligible employee either before 1 March or 1 July 2020 (if employed during both periods, the period with the higher number of hours should be used).

Summary of the new turnover test and wage subsidy amounts:

JobKeeper 1.0 JobKeeper 2.0
Eligible employees average hours worked in 28 days before 1 March 2020 or 1 July 2020 30 Mar 2020 - 27 Sept 2020 28 Sept 2020 - 3 Jan 2021 4 Jan 2021 - 28 Mar 2021
More than 20 hours $1,500 per fortnight
$1,200 per fortnight $1,000 per fortnight
Less than 20 hours $750 per fortnight $650 per fortnight
Turnover Test GST turnover has or will be reduced by more than 30 % relative to a comparable period a year ago. Must demonstrate a 30% decline in actual GST turnover during the relevant quarter.
Turnover Test Period A month or quarter, compared to the same month or quarter in 2019 (March 2019 compared to March 2020 or quarter starting on 1 July 2020 compared to the same quarter in 2019). September quarter 2020 (July, August, and September) compared to the same quarter in 2019. December quarter 2020 (October, November and December) compared to the same quarter in 2019.

What should I do next?

From 28 September:

  • If you are not already receiving the JobKeeper Payment you will need to enrol. If you qualified under JobKeeper 1.0 you do not need to re-enrol.

Between 1 and 31 October you will need to:

  • Show that your actual GST turnover has declined by 30 percent in the September 2020 quarter (July, August and September) relative to a comparable period (the corresponding quarter in 2019). You’ll need to check your eligibility from 1 October 2020. Once confirmed, you must submit this information to the ATO.
  • Pay your eligible employees at least the JobKeeper amount that applies to them each JobKeeper fortnight. For the period 28 September 2020 to 3 January 2021 this will be either $1,200 or $750.

Between 1 and 14 November you will need to:

  • Complete a monthly business declaration.
  • Advise the ATO whether the higher or lower payment rate applies to each eligible employee (including sole traders, partners in a partnership and directors of a company).

You must also tell your eligible employees, which payment rate applies to them within 7 days of notifying the ATO of their payment rate.

Further information

This fact sheet is part of a series on the JobKeeper Payment aimed at assisting members understand the requirements. More information is set out in:

#2 JobKeeper 2.0 - Eligibility

#3 JobKeeper 2.0 - Applying

#4 JobKeeper 2.0 – Receiving the Payment

#5 JobKeeper 2.0 – JobKeeper enabling directions

#6 JobKeeper 2.0 – Record Keeping and Reporting Requirements

The Federal Government and ATO has released the following information to assist businesses understand the scheme:

Contact a HIA Workplace Adviser

1300 650 620

or email enquiry@hia.com.au

Current at: 25 September 2020
HIA ref no: NFSIRE1363

 

Fact sheet 1 | Fact sheet 2 | Fact sheet 3 | Fact sheet 4 | Fact sheet 5 | Fact sheet 6