The JobKeeper extension 1 runs from 28 September 2020 to 3 January 2021, with JobKeeper extension 2 running from 4 January 2021 to 28 March 2021.
The rate of payment in each extension period will depend on the numbers of hours an eligible employee or business participant works or is actively engaged in the business and is different for each extension period.
For Jobkeeper 1, you will need to demonstrate actual decline in turnover when your current GST turnover for the quarter ending 30 September 2020 (July, August and September) has declined by the specified shortfall percentage (30%, 50% or 15%) in comparison to your current GST turnover for the quarter ending 30 September 2019.
The rates of the JobKeeper payment in this extension period are:
- Tier 1: $1,200 per fortnight (before tax)
- Tier 2: $750 per fortnight (before tax).
For JobKeeper 2, you will need to demonstrate actual decline in turnover when your current GST turnover for the quarter ending 31 December 2020 (October, November and December ) has declined by the specified shortfall percentage (30%, 50% or 15%) in comparison to your current GST turnover for the quarter ending 31 December 2019.
- Tier 1: $1,000 per fortnight (before tax)
- Tier 2: $650 per fortnight (before tax).
What is different, is that now you are being asked to use your current GST not projected. In the first test you could elect cash or accrual, in the second test, income is more complex.
JobKeeper 2 is not as simple and is harder to pass, but still, many small businesses will qualify. I would urge you to register for it, as many didn’t register for Jobkeeper 1 or were late doing so. The onus is on you.
Disclaimer - I have covered just the basics here and not all of the rules. This is a complex area and I would urge you to seek advice personal to you.
Contact your local TaxAssist Accountant who would be happy to help.
Written by Terry Murphy
Date published 22 Sep 2020 | Last updated 22 Sep 2020This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.
Sign up for our newsletter
Receive important tax news suitable for business owners and self-employed professionals.
Choose the right accounting firm for you
Running your own business can be challenging so why not let TaxAssist Accountants manage your tax, accounting, bookkeeping and payroll needs? If you are not receiving the service you deserve from your accountant, then perhaps it’s time to make the switch?
We specialise in supporting independent businesses and work with over 2,500 clients. Each TaxAssist Accountant runs their own business, and are passionate about supporting you.
We enjoy talking to business owners and self-employed professionals who are looking to get the most out of their accountant. You can visit us at any of our locations, meet with us online through video call software, or talk to us by telephone.
Changing accountants is easier than you might think. There are no tax implications and you can switch at any time in the year and our team will guide you through the process for a smooth transition.