JobKeeper 2.0 took effect yesterday (28 September) which extends the JobKeeper payments and temporary workplace flexibilities through to 28 March 2021.
There are a number of changes under the extended scheme including the reduced JobKeeper payment rates, the secondary turnover test and legacy employers ongoing access to temporary provisions in the Fair Work Act.
Last week Australian Taxation Office provided an outline of key dates for employers to assist them to prepare for the next phase of JobKeeper payments.
“There are some key dates to keep in mind, and simple steps employers can take now, so they are ready for the changes, but please remember that not everything needs to be done from next week” said Deputy Commissioner James O’Halloran.
“From Monday 28 September, 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,” said Mr O’Halloran.
Employers will need to let their eligible employees know which JobKeeper payment rate they will receive. This will then be the amount that the ATO pays to employers.
The ATO has clarified that employers do not need to re-enrol to claim JobKeeper payments in the first extension if they are already enrolled. Employers will need to check their continuing eligibility and submit that information to the ATO from 1 October 2020.
Employers will need to notify the ATO about eligible employees, including new employees who become eligible, and what rate they are being paid as part of the normal payday reporting in October which can be done through Single Touch Payroll.
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 relative to a comparable period. This needs to be done before 31 October 2020.
More information about the extended JobKeeper scheme and the actual decline in turnover test can be found on the ATO website.
Contact AREEA’s workplace consulting team for advice and support on JobKeeper.
Key dates to remember
- 28 September 2020: start paying your eligible employees Tier 1 and Tier 2 JobKeeper rates based on their hours worked.
- From 28 September: if using Single Touch Payroll to notify us of your eligible employees, provide each eligible employee’s Tier as part of your normal payday reporting. Enrol for the JobKeeper payment if you’re 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.
Government extends pandemic leave payment to WA workers
The Australian Government’s Pandemic Leave Disaster Payment has been extended to include eligible workers in Western Australia. Eligible employees who cannot earn an income because they must self-isolate, quarantine or care for someone with COVID-19 could receive the $1500 payment.
Western Australia joins Victoria and Tasmania in introducing the pandemic leave payment following agreement between the Australian Government and the Western Australian Government. The Commonwealth-funded payment is now available to West Australians who are not receiving an income, salary maintenance, JobKeeper payments or other forms of Government income support.
The pandemic leave disaster payment arrangements are being administered by Services Australia and can be claimed over the phone by contacting 180 22 66.
As of 16 September, more than $13.3 million in Pandemic Leave Disaster Payments has been paid for some 9,000 granted claims since 6 August.
