Less employers, less employees, lower rates and two different tiers.
And Fair Work JobKeeper discretions continue (for some).
If the business currently receiving JK experiences an ongoing decline in actual GST Turnover of 30% (50% large, 15% NFP).
A business is allowed to enter JK if they meet all eligibility requirements including decline in turnover.
Noting it continues to include Eligible Business Participants (EBPs) specifically including the self-employed.
“Ongoing actual decline in turnover”
An assessment of the decline in actual GST Turnover results for the quarter ended 30th September 2020 will mean an employer is eligible for JK for October to December, and a decline in turnover for the quarter ended 31st December 2020 will mean eligibility for JK for January to March 2021.
“Actual GST Turnover” is the GST exclusive taxable value of supplies made during the period (GST & FRE but not Input Taxed). We do not yet have confirmation of cash vs accrual or whether it is the same method as you report JK now. Note: JK 2.0 does not require you to be GST registered and JK does not require you to lodge BAS or lodge BAS quarterly. Currently the sale of assets is included in the GST turnover calculation.
Alternative tests may be allowed by the ATO. Refer to the existing alternate tests.
Timing issue: Employers may have to pay staff immediately after 28th September before being able to assess the decline in actual turnover for the quarter ended 30th September.
Impact: Employers who did not decline 30% in their ACTUAL GST turnover for the September quarter will cease JK as from 28th September.
It is a QUARTERLY test of actual turnover this year compared to same quarter last year.
How Much JobKeeper?
Employees who work 20 hours or more per week. In the four weeks of pay periods before 1st March 2020 (the time period is still in discussion).
Employees working for 20 hours or more per week on average and EBPs actively engaged in the business for 20 hours or more per week on average during February:
Employees who work less than 20 hours per week in the 4 weeks before 1st March 2020:
Employers will nominate which payment rate they are claiming for each employee or EBP.
There will be “alternate tests” to assess hours where hours worked in February 2020 were not “usual”.
Actual GST Turnover
Fair Work JobKeeper Directions
The proposed law is before Parliament as of 31st August 2020 - it is not final yet!
Then the rules will need to be issued by the Treasurer, and the Fair Work Ombudsman (FWO) will need to issue their guidance.
The proposal is: To extend the Fair Work JobKeeper Directions until 28th March 2021
Legacy employers have modified provisions, including:
IntroductionEmployers need to satisfy record keeping requirements to be entitled to JobKeeper payments. These include:
The ATO states:
“If you've made a claim and made genuine mistakes, we'll help you resolve them. We want to give you the support you need, without the worry of accruing a debt, repaying money or getting penalised for genuine mistakes.
We know that most Australians are honest and do the right thing. However, there are a handful of people who try to take advantage and exploit the system for their own financial gain.
We will not tolerate anyone engaging in illegal behaviour or developing contrived schemes designed to take advantage of the COVID-19 stimulus packages. Where people deliberately exploit the system, we will take action. We've already seen some examples of people doing the wrong thing, and we've acted quickly and decisively.”
Documented JobKeeper Compliance IssuesSome behaviours that are attracting ATO attention include: