JobKeeper has been an enormous success and extremely helpful for many small businesses. However, JobKeeper version 1 is nearing its end date, followed, thankfully, by the JobKeeper extension, set to take effect on 28 September 2020.

WHAT IS JOBKEEPER EXTENSION

There are two stages to the JobKeepr Extension, both requiring a 30% reduction in income (small businesses) and both subject to independent eligibility tests:

1. Extension 1 – 28 September 2020 to 3 January 2021; and
2. Extension 2.- 4 January 2021 until 28 March 2021.

For JobbKeeper 1, you were in the loop once you passed the eligibility test until the end (September 2020). Eligibility tests for the extensions are similar but limited to each extension’s three-month period – i.e., you will have to pass the eligibility test for Extension 1 and again for Extension 2.

JOBKEEPER EXTENSION 1

JobKeeper extension 1 was from 28 September 2020 until 3 January 2021 and tested on September 2020 Qtr income.

To pass the eligibility tests, you will need to demonstrate that your actual GST turnover has fallen in the September 2020 quarter (July, August, September) relative to a comparable period (generally the corresponding quarter in 2019).

Further, two rates apply to eligible employees/Business Participants:

1. Tier 1 rate will be $1200 per fortnight – for eligible employees/Business Participants working an average of 20 hours per week or more;
2. The tier 2 rate will be $750 per fortnight. – other eligible employees/business participants, i.e., less than 20 hours per week.

Employers and businesses will need to nominate the rate they claim for the eligible employees and/or eligible business participants.

JOBKEEPER EXTENSION 2

JobKeeper extension 2 was from 4 January 2021 until 28 March 2021 and tested on December 2020 Qtr income.

To pass the eligibility tests, you will need to demonstrate that your actual GST turnover has fallen in the December 2020 quarter (October, November, December) relative to a comparable period (generally the corresponding quarter in 2019).

Further, two rates apply to eligible employees, Business Participants:

1. Tier 1 rate will be $1000 per fortnight – for eligible employees/Business Participants working an average of 20 hours per week or more;
2. The tier 2 rate will be $650 per fortnight. – other eligible employees/business participants, i.e., less than 20 hours per week.

Employers and businesses will need to nominate the rate they claim for the eligible employees and/or eligible business participants.

Call our office on 32083888 for an appointment at our conveniently located Springwood office.