So what’s new in JobKeeper 2.0?

The existing modified Fair Work regime for JobKeeper employers has been extended by a further 6 months to 28 March 2021.

The modified regime is available for the 2 Quarters of JobKeeper 2.0 – but you must be a JobKeeper employer and have transitioned to JobKeeper 2.0.

Otherwise unless your employers have transitioned to JobKeeper 2.0 all workplace arrangements you have previously made under the modified Fair Work regime end on 28 September or the end of the December Quarters for those not transitioning to the last Quarter.

Be prepared –  If you are not transitioning to JobKeeper 2.0 or a Legacy employer review and reorganise your workplace arrangements to comply with the general (non-JobKeeper) regime.

Employers transitioning to JobKeeper 2.0 (as per ATO preliminary guidance): 

  • Do not need to re-enrol nor reassess employee eligibility or employee re-nomination.
  • Employers must also determine if they satisfy the actual fall in the turnover test for each of the JobKeeper 2.0 Quarters before they complete the November monthly declaration.

You can be now eligible for JobKeeper 2.0 even if you were not eligible for JobKeeper 1.0.

Legacy Employers and Access to a Different Modified Fair Work Regime

Legacy employers are employers who:

  • Had previously qualified for JobKeeper 1.0 (or the first Quarter of JobKeeper 2.0)
  • Do not qualify to transition to one or both Quarters of JobKeeper 2.0
  • Wish to continue to access the JobKeeper specific modifications to the Fair Work Act
  • Continue to suffer at least a 10% decline in turnover.

Who Does This Affect?

Businesses

Businesses will now need to reassess their turnover for each of the 2 new periods:

Extension 1 (28 September 2020 to 3 January 2021) you’ll need to demonstrate that your actual GST turnover has fallen in the September 2020 quarter and compare it to the same quarter in the previous year.

Extension 2 (4 January 2021 to 28 March 2021) you’ll need to demonstrate that your actual GST turnover has fallen in the December 2020 quarter and compare to the previous year’s quarter.

Most businesses will use their BAS to assess their eligibility however as BAS deadlines are not due until one month after the end of the quarter eligibility needs to be assessed in advance of the BAS reporting deadlines.

Employees

These changes impact employees who were not previously eligible due to not being currently employed on 1 March 2020 and casuals who were ineligible due to not being employed for the 12 months leading up to 1 March 2020.

These changes do not affect those that were already qualified for JobKeeper on 1 March 2020. These employees still remain eligible for Jobkeeper until 27 September 2020.

JobKeeper can now apply for anyone who commenced fulltime or part-time work after 1 March 2020 but before 1 July 2020 or any long-term casuals who have now completed their 12 months of employment i.e. those who started between 3 March 2019 & 2 July 2019.

If you want more information, or aren’t sure check out the ATO website and speak with your accountant.
Kerry Hallett
Chamber President