The JobKeeper scheme has been extended from 28 September 2020 until 28 March 2021.
There are two separate extension periods. For each extension period, an additional actual decline in turnover test applies and the rate of the JobKeeper payment is different.
If your business is currently receiving this subsidy, your payments will continue as is, until 27 September. However, the current development of a ‘second wave’ of coronavirus infections creates insecurity across the recovering economy that affects some businesses, but not others. Therefore, from 28 September JobKeeper will evolve to prioritise support to those businesses and not-for-profits (NFP) who continue to be significantly impacted by COVID-19. Here’s how JobKeeper will adapt over the coming months.
Rules regarding decline in turnover test
For JobKeeper fortnights from 28 September 2020 you will need to meet an actual decline in turnover test. The actual decline in turnover test is similar to the original decline in turnover test. However:
- it must be done for a specific quarter only, being the September 2020 quarter for JobKeeper Extension 1
- you must use actual sales made in the relevant quarter, not projected sales, when working out your GST turnover
- you must allocate sales to the relevant quarter in the same way you would report those sales to a particular business activity statement if you were registered for GST
- if you are registered on a cash basis, your GST turnover for the test will be on a cash basis.
The actual decline in turnover test is satisfied for when your current GST turnover for the quarter ending 30 September 2020 (the months of July, August and September) has declined by the specified shortfall percentage in comparison to your actual GST turnover for the quarter ending 30 September 2019.
Business eligibility
To be eligible, businesses must have experienced:
- 50% decline for those with an aggregated turnover of more than $1 billion
- 30% decline for those with an aggregated turnover of $1 billion or less
- 15% decline for Australian Charities and Not-for-profits Commission-registered charities (excluding schools and universities).
This will be based off turnover during the September 2020 quarter (July, August, September), relative to the comparable period in 2019.
Businesses will need to assess their eligibility for JobKeeper in advance of the BAS deadline as the deadline to lodge a BAS for the September quarter or month is in late October, and the December quarter (or month) BAS deadline is in late January for monthly lodgers or late February for quarterly lodgers.
Be ready to lodge a BAS with us.
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