JobKeeper 2.0/2.1 Rules Updated

The updated rules and explanatory statement clarify a number of common issues that have been raised by accountants since the JobKeeper extension was announced, including:

  • An entity will still need to have carried on a business in Australia on 1 March 2020 to qualify for JobKeeper under the original rules or the expanded rules (the rules are a bit different for non-profit entities). An entity that commenced carrying on a business after this date will not generally be able to access JobKeeper.

  • An entity can potentially access JobKeeper for the period between 4 January 2021 and 28 March 2021 even if it didn't qualify for JobKeeper for the period between 28 September 2020 and 3 January 2021 (e.g., because it failed the decline in turnover test for the September 2020 quarter).

  • An entity can potentially access JobKeeper on or after 28 September 2020 even if it was not eligible for JobKeeper prior to this date or it chose not to enrol in JobKeeper before this date. However, these entities will need to pass the original decline in turnover test in addition to the new decline in turnover test(s), although the original decline in turnover test is modified so that it can take into account the months of September, October, November and December 2020 as well as the December 2020 quarter.

  • When working out the payment rate that applies to an employee, you will be looking at the actual hours worked by the employee during the test period plus the hours they received paid leave or there was a paid absence for public holidays. The higher payment rate should apply if the employee worked at least 80 hours in the 28 day period ending at the end of the most recent pay cycle for the employee before 1 March 2020 or 1 July 2020. Both of these reference points are applicable to all eligible employees, regardless of whether their eligibility is based on a 1 March 2020 or 1 July 2020 test date.

  • The Commissioner is given the power to set out alternative tests for determining whether the new decline in turnover test is satisfied, to set out timing rules for determining when supplies are treated as having been made, to determine that the higher payment rate applies to a class of employees and to determine alternative reference periods for testing whether the higher payment rate applies for employees. Hopefully the Commissioner will release details in these areas soon.

MORE DETAILS TO COME

SOURCE - Knowledge Shop Pty Ltd, Level 2, 115 Pitt St, Sydney, NSW 2000, 1800 800 232

Matt Dunn