Reply To: JobKeeper Eligibility Questions

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#228905

Answered by Hood Sweeney:

1. There will be more START and FINISH codes to report to the ATO when an employee is going onto or coming off of the JK regime for 2.0. Your STP software should update to include the further codes for the fortnights that employees are starting and finishing from.

2. There are a few different rates, depending on the type of business and the aggregated turnover of the business. Most businesses will be captured in the 30% reduction rate. Therefore to be eligible for JobKeeper 2.0 you must compare the September 2019 quarter income reported on your BAS, with the September 2020 quarter income to be reported on your BAS and determine the reduction in income. If this reduction is 30% or more, then you will be eligible for JobKeeper 2.0.

The rates of decline in turnover are as follows:
• 50 per cent for those with an aggregated turnover of more than $1 billion;
• 30 per cent for those with an aggregated turnover of $1 billion or less; or
• 15 per cent for Australian Charities and Not-for-profits Commission-registered charities (excluding schools and universities).

3. The turnover to base the calculations on will depend on how you report turnover on your BAS. Therefore, if you include the forward bookings received on your BAS, then you will need to include the income in the calculation. You may want to look at how you are treating these deposits for GST purposes, as they may not be required to be included in your GST turnover on your BAS until either the deposit is forfeited by the customer, or applied as consideration for a supply. You can contact me on Peter.radovanovic@hoodsweeney.com.au or 1300 764 200 to discuss this in more detail.

4. Yes, you must re-apply for 2.0 using the new decline in turnover test for the September 2020 quarter. You must re-apply for 2.0 but you do not need to re-apply before the end of September. If you calculate that your business meets the decline in turnover test, then we assume that you will be able to enrol in the extension similar to how you currently enrol, which is within 14 days from the end of the month. i.e. to enrol and declare by 14th of November 2020 for the October 2020 month. Note: the minimum wages must still be paid to employees by the end of each fortnight. Employees or business participants that are already in JobKeeper 1.0 do not need to complete new nomination forms.

5. Yes, your employee must be an Australian resident under the Social Security Act 1991, which requires they reside in Australia, AND are one of: an Australian citizen, the holder of a permanent visa, or a Protected Special Category Visa Holder.

6. It is not a requirement that the employee works. So yes, they would still qualify if they continue to be employed by you.

7. You can do an additional payment out of cycle to top them up to the $1,500 per fortnight. IMPORTANT: For FN 10 and FN 11, the top-up must be paid to the employee by 31 August 2020.

8. Yes, you can still include employees that have been stood down under the Fair Work Act 2009. Therefore you can re-test them at 1 July and possibly now include them in JobKeeper 1.0 FN10, FN11, FN12 & FN13 and possibly JobKeeper 2.0 if you are eligible. Note: Payments to employees for FN 10 and FN 11 are due by 31 August 2020.

9. It will still be based on the full quarter turnover. You will need to add the three BASs together for 2019 and compare the turnover for the three BASs in 2020.

10. Yes, the average hours are calculated on the 4 weeks immediately prior to 1 March or 1 July. If your employee has been eligible since 1 March, you can use either testing period. But if your employee only became eligible from 1 July then you must use the 4 weeks immediately prior to 1 July to calculate the average. If for some reason that 4 weeks is not a true representation on hours worked, then you can apply to the Commissioner to use a different period to calculate the average.