Job Keeper 2.0

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Job Keeper 2.0
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• Many Australian small businesses say JobKeeper
  has been a lifesaver in these difficult times, so
  its a relief to hear JobKeeper has been
  extended, with some notable changes. Weve tried
  to capture whats new with the wage-subsidy
  program below.
• There are some complexities, so we recommend you
  speak with your iKeep bookkeeper or accountant
  for the fullest picture, as well as visit the
  ATOs JobKeeper extension page.

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• Chill Until September
• If you want the JobKeeper changes summarised in
  15 words, the Institute of Certified Bookkeepers
  has captured them nicely Nothing changes before
  end-September. Then some employers become
  ineligible, and some receive less.
• You may remember that in your original
  application for JobKeeper, you had to document a
  one-time drop in business revenue of at least
  30. It only applied to eligible employees who
  were with you before 1 March 2020.

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• After end-September 2020, youll need to document
  an ongoing actual decline of 30 or more. And the
  decline must be quarterly, whereas at JobKeepers
  launch, you had more flexibility in choosing a
  period. It will still apply only to eligible
  employees who were with you before 1 March.
• What does this change look like in practice?
• For employers to be eligible for JobKeeper
  payments from 28 September 2020 to 3 January
  2021, they must have recorded an actual decline
  in turnover of 30 or more in both

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• the quarter ended 30 June 2020 (compared with the
  same quarter in 2019)
• the quarter ended 30 September 2020 (compared
  with the same quarter in 2019)
• In the new year, the same pattern holds. To be
  eligible for JobKeeper payments from 4 January to
  28 March 2021, you must have also had an actual
  decline in turnover of 30 or more in the quarter
  ending 31 December 2020 compared with the same
  period in 2019.

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• Now more than ever, it will be important to have
  your Xero records up to date so that we can
  quickly assess your business eligibility at the
  end of a quarter.
• Smaller subsidy
• If you remain eligible for JobKeeper payments
  after September, youll find that the wage
  subsidy is less generous. The 1,500 flat payment
  per employee, per fortnight, could drop by more
  than half. There are no changes to employee
  eligibility requirements. The changes are as
  follows.

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• For eligible employees who work 20 hours or more
  per week
• 1,500 per fortnight payment continues until the
  fortnight ended 27 September
• 1,200 per fortnight until 3 January 2021
• 1,000 per fortnight until 28 March 2021
• It remains to be seen whether JobKeeper will
  extend past March 2021.

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• For eligible employees who work less than 20
  hours per week
• 1,500 per fortnight payment continues until the
  fortnight ended 27 September
• 750 per fortnight until 3 January 2021
• 650 per fortnight until 28 March 2021
• Remember that as an employer, you must pay your
  staff before claiming the reimbursement from
  JobKeeper. So youll want to take a close look at
  your revenue, your payroll and determine how
  these changes will affect your cash flow.

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• Again, its advisable to speak with an accountant
  or iKeep Bookkeeper to ensure youre factoring in
  everything.