The JobKeeper program Extension 1 comes to an end on 3rd January 2021. Businesses who require further JobKeeper wage support after this date will need to reassess their eligibility in January/February 2021.
Eligibility for Extension 2 will be assessed by using an actual decline in turnover test. Generally this will be current GST Turnover for the quarter ending 31st December 2020 (October, November & December) having declined by 30% or more in comparison to the GST turnover for the quarter ended 31st December 2019 (the prior year). If the December quarter 2019 is not an appropriate comparison period there are alternative tests available.
The employee payment tiers will continue to apply, with employees who worked for 80 hours or more in the four weeks of pay periods before either 1st March or 1st July being classified as Tier 1. Any other eligible employees will fall under Tier 2.
JobKeeper payment rates reduce in the Extension 2 period to:
Tier 1 Employees: $1,000 per fortnight (before tax)
Tier 2 Employees: $650 per fortnight (before tax)
What to do from 4th January:
- If you are currently enrolled in JobKeeper Extension 1 you now have until 28th January to lodge the December declaration (originally due 14th January). This encompasses JobKeeper fortnights 18, 19 & 20 spanning 23rd November – 3rd January.
- Assess your December quarter turnover for eligibility to JobKeeper Extension 2.
- If eligible, complete the new Decline in Turnover form available on the ATO portal from 4th January onwards until 14th February. The January JobKeeper submission will then be available to lodge from 1st February – 14th February.
- Ensure minimum wage conditions of Tier 1 $1,000 & Tier 2 $650 are met for employees. You have extra time to 31st January to meet these minimum payments.
If you don’t meet the December turnover test and are ineligible for Extension 2 you drop out of the program, there is no need to un-enroll. However, if you report wages via STP (Single Touch Payroll) you will need to enter a finish fortnight for employees of FN-21 to submit via your payroll software.
If you have any questions or require our assistance with turnover figures or submissions please contact our office during the January/ February period.
To assist you further general information regarding JobKeeper can be found at www.ato.gov.au/General/JobKeeper-Payment.
Additional Support Grants for Victorian Businesses
Please also note that the Victorian Government is continuing to provide support for Victorian businesses with programs & support grants. We encourage you to review the Business Victoria website periodically at www.business.vic.gov.au to stay up to date with programs. Current programs include:
- Sole Trader Support Fund, closes 30th December www.business.vic.gov.au/support-for-your-business/grants-and-assistance/business-resilience-package/sole-trader-support-fund.
- Small Business Digital Adaption Program, closes 28th February www.business.vic.gov.au/support-for-your-business/grants-and-assistance/business-resilience-package/Small-Business-Digital-Adaptation-Program.
- Business recovery & resilience mentoring sessions www.business.vic.gov.au/support-for-your-business/grants-and-assistance/business-support-package/business-recovery-and-resilience-mentoring.
- Mental Health Wellbeing helpline www.business.vic.gov.au/support-for-your-business/grants-and-assistance/business-support-package/wellbeing-and-mental-health-support-for-victorian-small-businesses.
Please do not hesitate to contact our office if you have any questions, or if we can assist you in any way.