Skip to main content

JobKeeper 2.0 fact sheet 2 - eligibility

JobKeeper 2.0 will provide eligible employers with a wage subsidy to eligible employees from 28 September to 28 March 2021. JobKeeper 2.0 is an extension of the original JobKeeper Payment (JobKeeper 1.0) which will end on 27 September.

JobKeeper 2.0 has made changes to the amount of the wage subsidy and the turnover test:

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.

Both employers and employees must be eligible and eligible employers will be required to pass payments directly onto eligible employees as wages or as a subsidy to their wage.

Q. Who is an eligible employer for JobKeeper 2.0?

Under JobKeeper 2.0 a business will be eligible for the subsidy if you have a GST turnover of less than $1 billion and you can demonstrate that your actual GST turnover has declined by 30 percent in one or both of the two relevant quarters.

This differs from JobKeeper 1.0 under which eligibility was based on whether GST turnover has or will be reduced by more than 30 percent relative to a comparable period a year ago (of at least a month) at any time between 30 March 2020 and 27 September 2020.

Any business wishing to become eligible for JobKeeper 2.0 must assess their turnover to ensure it meets the new requirements set out below. This applies even if you are already receiving JobKeeper 1.0.

To be an eligible employer for payments from 28 September 2020 to 3 January 2021:

  • You must be able to demonstrate a decline is actual GST turnover of at least 30 percent in the September 2020 quarter (July, August, and September) compared to the same period in 2019.

To be eligible for payments from 4 January 2021 to 28 March 2021 you must reassess your turnover:

  • You must be able to demonstrate a decline is actual GST turnover of at least 30 percent in the December 2020 quarter (October, November and December) compared to the same period in 2019.

Employers with a turnover of $1 billion or more are also eligible if your actual GST turnover will be reduced by more than 50 per cent relative to a comparable quarters a year ago.

Q. Are business owners eligible?

Yes. People who are self-employed are eligible for the subsidy if they were carrying on a business on 1 March 2020 and at the time of applying for JobKeeper 2.0:

  • their turnover has fallen by at least 30 percent ;
  • had an ABN on or before 12 March 2020, and either:
    - had an amount included in its assessable income for the 2018-19 year and it was included in their income tax return lodged on or before 12 March 2020 (or such later time as allowed by the Commissioner), or
    - made a supply during the period 1 July 2018 to 12 March 2020 and provided this information to the Commissioner on or before 12 March 2020 (or such later time as allowed by the Commissioner);
  • are actively engaged in the operation and activities of the business, meaning you:
    - perform or manage the performance of services the business provides;
    - sell or manage the sale of goods of the business;
    - perform other activities associated with managing the business; or
    - exercise control of activities related to business strategy and growth.
  • have a particular role within the business:
    - sole trader - the individual must be the entity;
    - partnership - the individual must be a partner in the partnership;
    - trust - the individual must be an adult beneficiary of the trust; and
    - company - either a director or shareholder in the company.
  • are not entitled to another JobKeeper Payment;
  • are not a permanent employee of any other employer;
  • were aged at least 18 years of age as at 1 March 2020; and
  • are an Australian citizen, or a resident for income tax purposes and the of a Special Category (Subclass 444) Visa Holder.

Businesses that are in liquidation are ineligible.

Partnerships

In a partnership only one person can be nominated (as the entrepreneur) to receive the JobKeeper allowance, along with any eligible employees, noting a partner cannot be an employee.

The other partner may be entitled to some other form of income support from Services Australia (e.g. JobSeeker allowance).

Trusts

Trusts can receive the JobKeeper Payments for any eligible employees.

Where beneficiaries of a trust only receive distributions, rather than being paid salary and wages for work done, only one individual adult beneficiary (that is, not a corporate beneficiary) can be nominated to receive the JobKeeper Payment.

A beneficiary who receives the payment cannot also receive the payment as an employee.

Company directors

If company directors receive directors’ fees then an eligible business can nominate one director (in a director capacity) to receive the payment, as well as any eligible employees.

A director who receives the payment cannot also receive the payment as an employee.

Shareholders

An eligible business that pays shareholders that provide labour in the form of dividends can nominate only one shareholder to receive the JobKeeper Payment.

A shareholder who receives the payment cannot also receive the payment as an employee.

Q. Who is an eligible employee for the JobKeeper Payment?

Once a business is considered an eligible employer, your employee’s eligibility will be determined by whether or not they were eligible under Job Keeper 1.0 and when they were employed.

  1. Ongoing eligible employees

    Employees that were in receipt of JobKeeper 1.0, will be eligible for JobKeeper 2.0 of the continue to meet the criteria under JobKeeper 1.0 and are employed by the same employer.

  2. Employees eligible between 1 March and 2 August 2020 (criteria under JobKeeper 1.0) include those:
    • that are currently employed and were employed on or before 1 March 2020 (including those stood down or re-hired);
    • are full-time, part-time, or long-term casuals (a casual employed on a regular basis for longer than 12 months as at 1 March 2020);
    • were at least 18 years old on 1 March 2020;
    • were 16 or 17 on 1 March 2020 and are independent or not undertaking full time study;
    • are an Australian citizen, the holder of a permanent visa, a protected category visa who has been residing continually in Australia for 10 years or more;
    • were an Australian resident for tax purposes on 1 March 2020; and
    • are not in receipt of a JobKeeper Payment from another employer.
  3. New employees may be eligible for payments from 3 August 2020 if:
    • that are currently employed and were employed on or before 1 July 2020 (including those stood down or re-hired);
    • are full-time, part-time, or long-term casuals (a casual employed on a regular basis for longer than 12 months as at 1 July 2020);
    • were at least 18 years old on 1 July 2020;
    • were 16 or 17 on 1 July and are independent or not undertaking full time study
    • were either:

      - an Australian citizen, the holder of a permanent visa, a special category visa holder or who has been residing continually in Australia for 10 years or more; or
      - an Australian resident for tax purposes on 1 March 2020; and

    • are not in receipt of a JobKeeper Payment from another employer.

Q. How does a business establish a decline in turnover?

To demonstrate that you have faced the relevant fall in turnover, you will be expected to establish that your turnover has actually declined by 30 percent in the relevant quarter (relative to your turnover in the corresponding quarter a year earlier).

Turnover is calculated as it is for GST purposes, and is reported on Business Activity Statements. It includes all taxable supplies and all GST free supplies but not input taxed supplies.

If you were not in business a year earlier, or your turnover a year earlier is not representative of your usual or average turnover, the ATO will have discretion to consider additional information that the business can provide to establish that you have been adversely affected by the impacts of the Coronavirus. For example because you were scaling up or you turnover is typically highly variable.

Q. What is Current GST turnover?

Turnover is calculated as it is for GST purposes and reported on Business Activity Statements. It includes all taxable supplies and all GST free supplies but not input taxed supplies.

Q. Are there any obligations on employees?

Yes your employee/s must:

  • Notify their principal employer if they have multiple employers.
  • If not an Australian citizen notify you of their visa status to allow you to determine if they are an eligible employee.
  • Notify Services Australia if they are currently in receipt of an income support payment.

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:

#1 JobKeeper 2.0 - Overview

#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: NFSIRE1364

 

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