The second extension period of “JobKeeper 2.0” began on 4 January 2021.
New eligibility criteria will apply for employers who seek to continue receiving JobKeeper payments, which will come at a reduced rate.
Employers coming off JobKeeper payment eligibility may still be eligible to continue issuing “JobKeeper-enabling directions”, such as stand-down, location or duties.
To receive JobKeeper 2.0 payments
Employers are required to reassess their eligibility, requiring a 15%, 30% or 50% decline in GST turnover in the December 2020 quarter, relevant to a comparable quarter.
If employers pass the turnover test, this information must then be submitted to the ATO using the decline in turnover form by 1 February 2021.
The ATO is now allowing employers until 31 January 2021 to ensure their employees are being paid the correct payment rates.
The new rates that must be paid, beginning 4 January 2021, are $1000 for tier 1 and $650 for tier 2, depending on the number of hours worked by the employee.
After notifying the ATO of which rates apply to their employees, employers then have seven days to notify their employees of which rate applies to them individually.
To continue issuing JobKeeper directions
Employers that do not qualify for the second extension period of payments, may still be able to qualify as a ‘legacy employer’, enabling them to re-issue any JobKeeper enabling directions previously in place prior to 4 January.
To qualify as a legacy employer, employers are required to demonstrate at least a 10% decline in GST turnover for the relevant 2020 quarter.
To demonstrate this decline, employers must either obtain a certificate from an eligible financial provider, or if the employer is a small business (less than 15 employees), make a statutory declaration.
Before issuing a JobKeeper-enabling direction, the employer must first give the employee 7 days’ written notice and consult with the employee during this notice period.
This consultation requirement involves providing information about the direction and its predicted effects, as well as discussing and considering the employees views. The employee must then be notified once a decision is made.
Given AREEA is an association member of the Australian Chamber of Commerce and Industry, members can download the Chamber’s fact sheets and employer guide materials here.
AREEA’s specialist workplace consultants are on-hand and ready to assist with any JobKeeper matters. Contact us here.
