KDC Accounting

JobKeeper 2.0

JobKeeper 2.0

Please see our updated information on JobKeeper 2.0

JobKeeper from 28 Sept with Alternative Tests

This has been mailed to most clients likely to be considering their eligibility to JobKeeper 2.0.   If you have not received our email, the contents are below  and we kindly request that you notify the office so we can check your email address and other details are correct:

Good morning everyone,

Most of you will have received our newsletter yesterday with our JobKeeper 2.0 brochure.  We have updated it now to include the Alternative Tests for those that would not be eligible under a straight comparison between September 2019 and September 2020 Quarters due to unusual circumstances.  They are not a lot different to the previous rules.

With more time available for drafting legislation, the Federal Government has been able to overcome a lot of the shortcomings of JobKeeper 1, improved the clarity, and to target the funds where best needed.  This does mean that a lot of businesses that were eligible for JobKeeper 1 will no longer be eligible for JobKeeper 2.0.   Funnily enough, the original draft said that if you didn’t get JobKeeper 1 then you can’t get JobKeeper 2, but the second wave in Melbourne saw them change this criteria.  So you may be eligible even if not eligible previously.

One of the significant differences for JobKeeper 2.0 is the tiered approach to payments based on the hours worked.  Anyone working less than 80 hours in the 28 days prior to the end of the last pay day before 31st March (read that closely – the days relevant for assessment will vary depending on the frequency and dates of pay days in February) will be entitled to a lower amount of JobKeeper.

What do you need to do next?

  • Employers need to notify the Tax Office of the Tiers at which each employee will be eligible.  You do this through your STP software and advise through an allowance that relates to each tier / eligibility criteria.
  • EBPs in companies, trusts, and partnerships will have a new declaration to fill in to confirm still eligible and at what tier,
  • Sole trader EBPs will have to notify the ATO of their ongoing eligibility – we are waiting for the forms to become available so watch the business portal
  • You will need to pay the correct amounts to staff but there is an extension of the deadline to late October to be sure that you are eligible before you have to make the payments.

As you can appreciate, we cannot proactively manage everyone’s eligibility and processing of the  STP payroll lodgements.  This one needs to be reactive so please get in touch and let us know that you require assistance.  The best way is to email admin@KDCaccounting.com.au (or reply to this email) and say JK2 help needed.

Stay well, stay sane, and stay in touch