COVID-19 - Jobkeeper Extension Update 2

Aegis Business Services is here to support you!

The Government is continuing to support businesses who are still impacted by COVID-19. 

We are still waiting for some of the finer details to be released from the ATO, however the broad rules have been released.  As always please feel free to contact us if you would like any clarity around your current situation.

JobKeeper is split into Extension periods

Extension One Details:

• To qualify you need to demonstrate that your actual GST turnover has fallen in the September 2020 quarter (July, August, September) relative to a comparable period in 2019 by 30%.

• This extension runs from fortnight starting 28^th September 2020 and finished on the fortnight period ending 3^rd January 2021.

• Payments are tiered:

   Tier 1 for employees & eligible business participants who work 80 hours or more in a four week pay period up to 1^st March or 1^st July will receive $1,200 per fortnight (before tax).

   Tier 2 for employees & eligible business participants who work less than 80 hours in a four week pay period up to 1^st March or 1^st July will receive $750 per fortnight (before tax).

Extension Two Details:

• To qualify you need to demonstrate that your actual GST turnover has fallen in the December 2020 quarter (October, November, December) relative to a comparable period in 2019 by 30%.

• This extension runs from fortnight starting 4^th January 2021 and finished on the fortnight period ending 28^th March 2021.

• Payments are tiered:

   Tier 1 for employees & eligible business participants who work 80 hours or more in a four week pay period will receive $1,000 per fortnight (before tax).

   Tier 2 for employees & eligible business participants who work less than 80 hours or more in a four week pay period will receive $650 per fortnight (before tax).

What to do now:

From 28 September 2020, you must do all of the following:

• work out if the Tier 1 or Tier 2 rate applies to each of your eligible employees and/or eligible business participants and/or eligible religious practitioners

• notify the Commissioner and your eligible employees and/or eligible business participants and/or eligible religious practitioners what payment rate applies to them; and

• during JobKeeper Extension 1, ensure your eligible employees are paid at least:

   $1,200 per fortnight for Tier 1 employees

   $750 per fortnight for Tier 2 employees

• during JobKeeper Extension 2, ensure your eligible employees are paid at least:

   $1,000 per fortnight for Tier 1 employees

   $650 per fortnight for Tier 2 employees.

Some Important Information to Note:

• You do not need to re-enrol for JobKeeper extensions if you are already enrolled for JobKeeper for the fortnights before 28 September 2020.

• As an eligible business participant you need to “actively engage in the business for 80 hours or more in February and provide a declaration to that effect” to be eligible for Tier 1.

At Aegis Business Services we are here to help you in all areas of your business and are dedicated to assisting you & your business.  We look forward to speaking with you soon.