Will JobKeeper 2.0 Keep You Afloat? - Tina Zawila
Will JobKeeper 2.0 keep you afloat?
By Tina Zawila
Current as of writing 5/08/2020
On 21st July 2020, the Government communicated it’s much anticipated review of the JobKeeper stimulus measures, and announced “JobKeeper 2.0”. JobKeeper 1.0 remains unchanged and in place until its original end date of 27 September 2020. Then JobKeeper 2.0 kicks in and applies until 28 March 2021.
Under JobKeeper 2.0 there are two distinct time periods; 28 September 2020 to 3 January 2021 and 4 January 2021 to 28 March 2021.
Amount of JobKeeper 2.0:
Under the new regime, the amount received reduces from the current $1,500 per fortnight for all eligible employees, to lower amounts based on an hours worked test, and a further reduction between the two time periods mentioned above.
JobKeeper 2.0 is essentially a two-tiered system based on the hours worked by the eligible employee under a “look back” arrangement dating back to the hours worked by the employee in February 2020. As if things aren’t complicated enough, employers will need to review the hours worked by their eligible employees during the four weeks prior to 1st March 2020 to determine if they worked 20 hours or more per week on average. Based on this assessment, the employer will nominate the JobKeeper payment rate for each employee.
If employees worked more than 20 hours per week, they will be eligible to receive the full rate of $1,200 per fortnight from 28 September 2020. Other employees (those who worked less than 20 hours per week) will be entitled to $750 per fortnight (a partial rate).
Then from 4th January 2021, these rates reduce to $1,000 per fortnight (full rate) and $650 per fortnight (partial rate).
Employers must continue to pay eligible employees these minimum rates each pay period.
Eligible Business Participants (owner operators) must determine the hours they were “actively engaged” in the business back in February 2020 to determine if they can claim the full or partial rate of JobKeeper 2.0.
Eligibility for JobKeeper 2.0:
The percentages that applied to the basic test for a decline in turnover of either 50%, 30% or 15% depending on the size and nature of the business under JobKeeper 1.0, still apply.
However, unlike the current JobKeeper rules which require businesses to only satisfy the decline in turnover test once between March and September 2020, the new rules will require businesses to meet modified decline in turnover tests from September 2020 to March 2021.
For the first time period, actual GST Turnover must decline in both the June and September 2020 quarters compared to the corresponding quarters in 2019.
For the second time period, actual GST Turnover must decline in the June, September and December 2020 quarters compared to the corresponding quarters in 2019.
As you can see, JobKeeper 2.0 is more complicated and stringent than its original counterpart. Due to the timing of the pay periods and the ongoing decline in turnover required to be eligible, business owners will need accurate and up-to-date financial and payroll information in order to be able to determine their eligibility. Your record-keeping has never been more important!
If you need assistance or advice in navigating JobKeeper 2.0 or keeping reliable and accessible financial records, please call the professional team at UHY Haines Norton on
+61 7 4972 1300.