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COVID-19 JobKeeper Extension | Phase 2

From 4 January 2021, businesses and not-for-profits should reassess their turnover to be eligible for the JobKeeper Payment.

This extension period will run from 4 January 2021 to 28 March 2021.

To be eligible, businesses and not-for-profits will be required to demonstrate that their actual GST turnover has significantly fallen (using the relevant existing decline in turnover tests) in the December 2020 quarter relative to the corresponding quarter in 2019.

The JobKeeper Payment will continue to remain open to new recipients, provided they meet the eligibility requirements and the turnover tests that apply during the relevant JobKeeper Payment period.

Eligible employers will need to complete a new Decline in Turnover form (available through the Business Portal or Online Services) to determine whether they are eligible to participate in the second JobKeeper Payment extension period.

Existing eligible employers must complete the new Decline in Turnover form before they can complete their business monthly declarations from 1 February 2021.

Employers that are new to JobKeeper, and would like to claim for fortnights ending 17 and 31 January, must enrol and submit the Decline in Turnover form by 31 January 2021.

The rates of the JobKeeper Payment in this extension period are:

  • Tier 1: $1,000 per fortnight (before tax)
  • Tier 2: $650 per fortnight (before tax)

Broadly, the JobKeeper Payment eligibility rules are summarised below:

Entity Eligibility Employee Eligibility
Turnover Decline  Turnover test  Date of employment   Payments
From 4 January 2021 to 28 March 2021 30% for businesses with turnover less than $1b
50% for business with turnover more than $1b
15% for charities
Actual turnover for the quarter ended 31 December 2020 Must be employed by the business by 1 July 2020 – other eligibility requirements remain unchanged $1,000 per fortnight to employees working more than 20 hours on average per week

$650 per fortnight for all other eligible employees

The rules and other guidance are summarised on the Treasury Website which can be accessed via the following links:

JobKeeper Payment Extension

JobKeeper Payment

We will continue to keep you updated with further information as it becomes available.

For further updates, visit TNR’s COVID-19 Resource Centreto help you and your business in this challenging time.

Please contact TNR if you have any queries related to Phase 2 of JobKeeper.

Important: The information contained in this post / article is not advice. Readers should not act solely on the basis of material contained in this post. Items herein are general comments only and do not constitute or convey advice per se. We recommend that our formal advice be sought before acting on anything contained in this post.