From Monday 28 September 2020, employers will need to pay their eligible employees a different rate of JobKeeper, with the rate dependent on the number of hours they work. These rates will change again from Monday 4 January 2021.
For extension 1 period (28 September 2020 to 3 January 2021), the rates of the JobKeeper payment are Tier 1: $1,200 per fortnight and Tier 2: $750 per fortnight. For extension 2 period (4 January 2021 to 28 March 2021), the rates of the JobKeeper payment are Tier 1: $1,000 per fortnight and Tier 2: $650 per fortnight.
It is important for employers to let their eligible employees know now what rate of JobKeeper payment they will receive. This will then be the amount that the Australian Taxation Office (ATO) pays to employers.
Although you do not need to re-enrol in JobKeeper, you do need to notify the ATO of your eligible employees and what rate you are paying them as part of your normal payday reporting in October 2020. This can be done through Single Touch Payroll (STP). Employers will also need to nominate any new employees if they are applying for a JobKeeper payment for them for the first time.
For the extension period commencing 28 September 2020, employers will need to show that their actual GST turnover has declined in the September 2020 quarter (July, August, September) relative to a comparable period (generally July, August, September 2019). This needs to be done before 31 October 2020. See the Actual decline in turnover test for more information. Alternative tests for determining actual decline in turnover may be available in some circumstances and the ATO encourages businesses to seek guidance if required on their dedicated help line 13 28 66.
KEY DATES TO REMEMBER
- Now: notify your employees about the JobKeeper payment they can expect to receive.
- 28 September 2020: start paying your eligible employees Tier 1 and Tier 2 JobKeeper rates based on their hours worked.
- From 28 September 2020: if using Single Touch Payroll (STP) to notify the ATO of your eligible employees, provide each eligible employee’s Tier as part of your normal payday reporting. Enrol for the JobKeeper payment if you are doing so for the first time.
- Between 1 – 14 October 2020: complete your October JobKeeper monthly business declarations to receive your reimbursement for the September fortnights.
- Between 1 – 31 October 2020: prepare and submit your businesses actual decline in turnover to the ATO.
- Before 31 October 2020: ensure you meet the wage condition for all eligible employees included in the JobKeeper scheme for the JobKeeper fortnights starting 28 September 2020 and 12 October 2020.
- From 1 November 2020: complete your monthly business declaration and confirm what payment tier you are claiming for each employee.
Extension of the JobKeeper Payment Factsheet is available at Extension of the JobKeeper Payment Factsheet.
Rates of the JobKeeper payment is available at ato.gov.au/JobkeeperExtension.
Current JobKeeper support and assistance available from the ATO and information about the JobKeeper extension go to ato.gov.au/JobKeeper.