With JobKeeper 2.0 passing in parliament last week there are a few changes that business owners and their employees need to be aware of in the coming month.
The bill extends the current JobKeeper by an extra six months until 28 March 2021. The amounts will be reduced to a two tier rate dependant on each employees circumstances. This will take effect from 28 September.
The rate of payment is categorised into a tier 1 or a tier 2 rate.
Employees who worked less than 20 hours per week on average in the 4 weeks prior to either 1 March or 1 July will generally receive the tier 2 rate.
There are some exceptions to this rule if someone was on leave etc.
For the period 28 September 2020 – 3 January 2021 the tier 2 rate will reduce to $750 per fortnight and will reduce to $650 a fortnight from 4 January 2021 – 28 March 2021.
Employees who commenced employment between 1 March and 1 July will now be eligible for JobKeeper payments provided they are either full time, part time or casual for 12 months.
The tier 1 rate will apply to employees who worked more than 20 hours per week on average in the above mentioned period. Business participants need to have been actively engaged in the busines during this time to receive the tier 1 rate.
For the period 28 September 2020 – 3 January 2021 the tier 1 rate will reduce to $1200 per fortnight and will further reduce to $1000 a fortnight from 4 January 2021 – 28 March 2021. See below JobKeeper 2.0 at a glance
Eligibility will need to be re-tested at two key dates for extension 1 and extension 2. And businesses will need to demonstrate that they have had a decline in GST turnover as per the below rates:
30% for an aggregated turnover of $1 billion or less
50% for an aggregated turnover of $1 billion or more
If you need any clarification or are unsure of you eligibility contact the team at Tier Accounting for a free chat.
Tier Accounting is a Chartered Accounting firm servicing Bayside, Mornington Peninsula and greater Melbourne across accounting, bookkeeping, business partnering, cloud set up and support and marketing.