JobKeeper 2.0 – Actions Required and Key Dates

JobKeeper 2.0 – Actions Required and Key Dates

With the original JobKeeper program ending on Sunday 27 September, specific actions are required by employers and eligible business participants / religious practitioners to continue to receive the payment between 28 September 2020 and 3 January 2021.

Key Dates

Immediately:Employers must notify their eligible employees about the JobKeeper payment they can expect to receive from 28 September 2020 to 3 January 2021.
28 September 2020: Employers commence paying eligible employees the applicable Tier 1 or Tier 2 JobKeeper rates
1– 4 October 2020: Employers must complete their October JobKeeper monthly business declarations in order to receive reimbursement for the September fortnights.
Between 1–31 October 2020: Employers must prepare and submit their business’s actual decline in turnover to the ATO.
Before 31 October 2020: Employers must ensure they pay their eligible employees included in the JobKeeper scheme the applicable rates for the JobKeeper fortnights starting 28 September 2020 and 12 October 2020.
From 1 November 2020: Employers must complete their monthly business declaration and confirm what payment tier they are claiming for each employee.

New Eligibility Requirements

In addition to the original eligibility criteria for the JobKeeper program, effective 28 September 2020 employers will need to demonstrate that their actual GST turnover has fallen against a comparable period by the specified shortfall percentage (generally 30%). In most cases this will mean comparing the actual GST turnover figures for the September 2019 and September 2020 quarters.

Alternative tests are available in certain circumstances, such as the business commenced operation after September 2019 but before March 2020. For more information on alternative tests, please contact us to discuss your situation.

JobKeeper Payment Rates

Effective 28 September 2020 there are two payment rates for the JobKeeper program – a tier 1 (higher) rate and a tier 2 (lower) rate.

JobKeeper FortnightsTier 1 RateTier 2 Rate
28 September 2020 – 3 January 2021$1,200.00$750.00

The payment rates will then decrease again effective 4 January 2021.

Which “tier rate” is my eligible employee / business participant entitled to?

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In order to receive the Tier 1 rate, employees must have worked a minimum 80 hours in the 28 days prior to the last day of the pay cycle that ended on or before either:

  • 1 March 2020
  • 1 July 2020.

Where your employee did not work at least 80 hours over the relevant 28 days, they will be entitled to the Tier 2 rate of pay.

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In order to receive the Tier 1 rate, eligible business participants / religious practitioners must have worked a minimum 80 hours in the month of February 2020.

Where the eligible business participant did not work at least 80 hours in February 2020, they will be entitled to the Tier 2 rate of pay.

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Alternative Reference Periods

In some circumstances, an alternative reference period for the hours an eligible employee, business participant or religious practitioner worked can be used.

The alternative reference period can only be applied if the standard reference period is not suitable, for example the person worked reduced hours due to sickness, injury or leave.

For more information about alternative reference periods, please contact us to discuss your circumstances.