Last updated 07 October 2020

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Government fact sheet with example

Detailed guide with examples

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The following info-graph has been shared with permission.

Please note that some details on the info-graph are out of date.

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Key Changes

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1. Reduced payments

• Payments will reduce on 28th September 2020 (phase 1 begins)
  • Tier 1: $1,200
  • Tier 2: $750
• Then reduce again on 04 January 2021 (phase 2 begins)
  • Tier 1: $1,000
  • Tier 2: $650
• Payments finish on 28 March 2021

2. Two tiers of payments

• Employees who satisfied the 80 hour test during either of the reference periods will receive the tier 1 rate of payment.
• Employees who did not satisfy the 80 hour test during either of the reference periods will receive the tier 2 rate of payment.

• • • Reference periods: the 28 days finishing on the last day of the last pay period that ended before either:
      • 01 March 2020
      • 01 July 2020

3. Eligibility

• Phase 1 of JobKeeper 2.0
  • Your business must show the relevant decline in turnover (usually 30%) for the September 2020 quarter compared to the September 2019 quarter.
  • Phase 1 Eligibility Spreadsheet for download
• Phase 2 for JobKeeper 2.0
  • Your business must show the relevant decline in turnover (usually 30%) for the December 2020 quarter compared to the December 2019 quarter.
  • Eligibility for phase 2 is not affected by eligibility for phase 1. Eligibility for each phase is determined separately. 

• Employee eligibility
  • Employees will now also be eligible for JobKeeper if they were employed by you at 01 July 2020 (previously only 01 March 2020).
    • This is not applicable to eligible business participants. They must be actively engaged in their business at 01 March 2020.

• Using the 80 hour test to determine which tier an employee is eligible for
  • For employees who worked for you at 01 March 2020, calculate how many hours they worked during both reference periods, then use whichever period is higher.
  • For employees who only worked for you at 01 July 2020, calculate how many hours they worked during the July 2020 reference period only.

• • • Examples for calculating hours can be found here.
    • Hours should include hours worked, paid leave, & paid public holidays.

• • • If an employee is only eligible for tier 2, then you must assess whether their hours in the reference periods were typical hours. You may need to use an alternative 28 day reference period particularly if they took unpaid leave or commenced employment during the reference period/s. Further details here.

• • • You must tell your employees which tier you are claiming for them for transparency purposes. This must be done within 7 days of notifying the ATO.

• Eligible business participants
  • Eligible business participants may only use their hours worked in the month of February 2020 (the whole 29 days). Eligible business participants will now either receive the higher or lower rate of payment depending on whether they worked more or less than 80 hours during February 2020 (previously eligible business participants working less than 80 hours would not receive any JobKeeper 2.0 payments).
  • If February was not a typical 29 days of work for the eligible business participant, then they should use the prior most recent typical 29 days (contained within one calendar month). Examples here

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Other Notes

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Wage Condition

JobKeeper 2.0 is still a reimbursement system. You must still pay each employee their minimum fortnightly payment (by the relevant fortnight date) in order to claim a JobKeeper reimbursement from the ATO.

The first two fortnights (14 & 15) will have a grace period up to the 31st of October 2020 to allow businesses time to determine their eligibility for JobKeeper 2.0. This means that you do NOT need to pay any JobKeeper top ups until the 31 October 2020 if you are unsure of your eligibility.

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Monthly Reporting

You will still be required to complete step 3 each month. This will now include a feature to select which tier the employees and eligible business participant are eligible for. Bookkeeping software such as Xero or MYOB may have features which will automatically send this information the ATO.

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JobKeeper 2.0 FAQs

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For original JobKeeper FAQs, please see here

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Can my business participate in JobKeeper 2.0 if it didn’t participate in the original JobKeeper Scheme?

Yes, your business may participate in any phase of JobKeeper even if it was not eligible for other phases of JobKeeper.

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Do I need to re-enroll for JobKeeper 2.0 if I was already enrolled for the original JobKeeper?

Not entirely. You will need to submit your turnover figures to prove your eligibility for JobKeeper 2.0. This is done in the same place that you report your monthly turnover.

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How do I calculate actual turnover?

Essentially your actual turnover is the income that you would report on your September and December 2020 BAS. JobKeeper 2.0 no longer allows businesses to estimate their projected turnover for eligibility purposes.

Please note, the following should be EXCLUDED from your actual turnover.

• JobKeeper payments received
• ATO Cash Flow Boost Payments received
• Apprenticeship payments received for COVID19
• State grants received for COVID19
  • and other grants received which are not consideration for a supply
• GST on sales
• Sales not connected to Australia
• Interest, dividends, & residential rent
• A full list of excluded income can be found here

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Will JobKeeper 2.0 have alternative tests for decline in turnover?

Yes, the ATO explanations of the alternative tests can be found here.

This Phase 1 Eligibility Spreadsheet for download also includes several of the alternative tests.

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Can we choose either the cash or accrual method to calculate our decline in turnover?

No, you need to use the same method used for lodging your BAS.

However, businesses that are not registered for GST may choose whether they use the cash or accrual method.

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Can a newly established business enroll for JobKeeper 2.0?

An entity must be carrying on a business at 01 March 2020 to be eligible for JobKeeper. Businesses that have commenced after that date will generally not be eligible.

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Can someone receive JobSeeker and JobKeeper 2.0 payments at the same time?

Yes, the reduced JobKeeper payments mean that you may be eligible for JobSeeker as well.

While receiving JobSeeker, you need to report other income including JobKeeper. Hence you may still be eligible for JobSeeker if your other income is low enough.