NEW RULES FOR THE EXTENSION OF THE JOBKEEPER PAYMENT

The JobKeeper Payment (JKP) has been extended and covers the JobKeeper fortnights from Monday 4 January 2021 to Sunday 28 March 2021.

Businesses are required to re-assess their eligibility to remain in the scheme and must satisfy two separate decline in turnover tests, being:

  • the original projected GST decline in turnover test and
  • the new actual GST decline in turnover test

The new actual GST decline in turnover test only applies to the six-month extension of JKP (JobKeeper 2.0) and is broken up into two separate extension periods, as follows:

Extension Period 1 – applies to JobKeeper fortnights that start on or after 28 September 2020 and end on or before 3 January 2021. The additional test will be satisfied where the entity’s actual GST turnover has declined by the required percentage (either 30% or 50%) for the quarter ending 30 September 2020, relative to its September 2019 quarter.

Extension Period 2 – applies to JobKeeper fortnights that start on or after 4 January 2021 and end on or before 28 March 2021. The additional test will be satisfied where the entity’s actual GST turnover has declined by the required percentage (either 30% or 50%) for the quarter ending 31 December 2020, relative to its December 2019 quarter.

For the new additional test, the applicable rate of decline in turnover required to qualify for the JKP in the extension periods is determined using the existing rules (50% for entities with an aggregated turnover of more than $1 billion and 30% for entities with an aggregated turnover of $1 billion or less).

This should be re-assessed when applying the new additional test as it may not be the same rate that was used in applying the original decline in turnover test (e.g. where there has been a substantial change in the entity’s turnover since the original test was applied).

If you have any questions surrounding the above or believe you may now be eligible, please contact our team by clicking here or phoning 4638 5300.

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