Changes to the JobKeeper scheme come into effect next Monday (28 September 2020). Whether you’re currently receiving JobKeeper or not, the changes may affect you and your business.

Not sure what these changes will mean? We’ve summarised them below.

If you’re already participating in the JobKeeper scheme

What’s changing?

Payment Scheme Extension

The JobKeeper Payment scheme has been extended to 28 March 2021, (with the final fortnight ending on 28 March 2021)

  • The extension has been broken down into two periods, Period 1 running from 28 September 2020 – 3 January 2021 and Period 2 running from 4 January 2021 – 28 March 2020.
  • You will need to satisfy an actual decline in turnover test for each of these periods.

Payment amount

The fortnightly pay amount reduces for all eligible employees or business participants.

Tiered system

The Scheme becomes a tiered system from 28 September 2020.

  • Employees will now be paid based on a two-tiered system.
  • The higher rate will apply to employees or business participants working at least 80 hours in the four weeks before 1 March 2020 or 1 July 2020
  • The lower rate applies to employees or business participants who work less than 80 hours in the four weeks prior to 1 March 2020 or 1 July 2020.
JobKeeper Extension Periods and Rates

Reporting requirement

The way in which you report your JobKeeper figures is also changing.

  • For Extension Period 1 you will need to show that your actual GST turnover has fallen by 30% in the September 2020 quarter in comparison to GST turnover for the September 2019 quarter.
  • For Extension Period 2, you will need to demonstrate that your actual GST turnover has fallen by 30% for the December 2020 quarter in comparison to the December 2019 quarter.

What does this mean for you?

  • Reduced payment amount
  • The amount you receive through the JobKeeper subsidy will be reduced on 28 September 2020 and again on 4 January 2021
  • The rate at which it is reduced will depend on the number of hours your employees work.

‘Actual decline in turnover’ test

  • You will need to satisfy the actual decline in turnover test for the September 2020 quarter and again for the December 2020 quarter.
  • You will be required to ensure your registered employees are up to date
  • You will need to nominate employees and business participants for the higher or lower rate in your monthly reporting.

If you were previously ineligible for the JobKeeper Scheme

What’s changing?

Eligibility

If you’ve experienced a decline in turnover of at least 30% in the September 2020 quarter (July, August, September) in comparison with the September 2019 quarter you may be eligible for the JobKeeper scheme.

Similarly, if you do not meet the eligibility requirements for Extension Period 1 you may meet them for Extension Period 2 as long as you have experienced at least a 30% reduction in turnover for the December 2020 quarter in comparison to the December 2019 quarter.

If you’re eligible for Extension Periods 1 or 2 you will be receiving the reduced payments in accordance with the higher and lower rates as detailed in the JobKeeper Extension Periods and Rates above. 

What does this mean for you?

‘Actual decline in turnover’ test

  • You will need to satisfy the actual decline in turnover test, showing that your current GST turnover for the September 2020 quarter has fallen by 30% in comparison with the September 2019 quarter.
  • You will also need to satisfy the original decline in turnover test HOWEVER you will satisfy this if you have already satisfied the actual decline in turnover test. 

Employee records

  • You will need to keep a record of how many employees you wish to register for the scheme and the rate at which they will be eligible for.
  • All registered employees and business participants will need to complete the JobKeeper Employee nomination notice which you can find here

We’re here to help

There is a lot of information to process and it’s important that you don’t miss the opportunity to gain access to JobKeeper for your business and your employees.

Our team at Qubik are able to assist. We can complete your reporting requirements on your behalf at a rate of $500 per quarter.  This rate reflects the substantial increase in accounting and verification activities required to support JobKeeeper payments from 28 September. 

If you would like our support with your reporting or have any questions about JobKeeper and its impact, please contact our customer service team on 07 3205 8938, email support@qubik.com.au. or complete our contact form

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