JobKeeper extension period 1 (Stage 2) and period 2 (Stage 3)

Although you do not need to re-enrol in JobKeeper, you do need to notify the ATO of your eligible employees and what rate you are paying them as part of your normal payday reporting in October. This can easily be done through Single Touch Payroll.

For the extension period commencing from 28 September 2020, employers will need to show that their actual GST turnover has declined in the September 2020 quarter compared to the relative to a comparable period being September 2019 quarter. For many businesses registered for GST, this calculation will match the ‘total sales’ reported at G1 on your BAS minus GST payable (1A), where applicable. If you are not registered for GST, you will work out your turnover using either the GST cash or non-cash basis of accounting. This needs to be done before 31 October 2020.

Alternative tests for determining actual decline in turnover may be available in some circumstances and the ATO encourages businesses to seek guidance if necessary.

Rates of Pay

The extension period 1 will run from 28 September 2020 to 3 January 2021. Tier 1: $1,200 per fortnight (before tax) Worked over 80 hours for the 4 weeks prior to 1 March 2020. Tier 2: $750 per fortnight (before tax). Worked less than 80 hours for the 4 weeks prior to 1 March 2020.

The extension period 2 will run from 4 January 2021 to 28 March 2021. Tier 1: $1,000 per fortnight (before tax) Worked over 80 hours for the 4 weeks prior 1 March 2020. Tier 2: $650 per fortnight (before tax). Worked less than 80 hours for the 4 weeks prior to 1 March 2020.

The following are the key dates for employers to remember:

Time Steps
Now Notify employees about the JobKeeper payment they can expect to receive.
28 September 2020 Start paying eligible employees Tier 1 and Tier 2 JobKeeper rates, based on their hours worked.
From 28 September If the employer is using Single Touch Payroll to notify the ATO of eligible employees, then the employer should provide each eligible employee’s Tier as part of the normal payday reporting.
The employer must also enrol for the JobKeeper payment if it is doing so for the first time.
Between 1 and 14 October 2020 Complete the October JobKeeper monthly business declarations to receive reimbursement for the September fortnights.
Before 31 October 2020 Ensure the wage conditions for all eligible employees included in the JobKeeper scheme for the JobKeeper fortnights starting 28 September 2020 and 12 October 2020 are met.
From 1 November 2020 Complete the monthly business declaration and confirm what payment tier is claimed for each employee.

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