The Latest Changes to JobKeeper 2.0 from 28 September 2020

The New Rules

The updated rules and explanatory statement clarify a number of common issues that have been raised by accountants since the JobKeeper extension was announced, including:

  • Carrying on an entity from 1 March 2020
  • Eligibility for December if failed previous decline in turnover test periods¬†
  • Applying the two tier payment rates
  • The power of the Tax Commissioner
  • GST reporting method
  • Current GST turnover
  • Jobkeeper payment rates – alternative tests for the 80 hour requirement
  • Employees not tied to hours worked
  • Wage condition extended to 31 October 2020

Alternative tests

The long-awaited JobKeeper alternative tests have been released.

The legislative instrument confirms that the updated versions of the alternative tests should be used in determining whether an entity passes the original decline in turnover test for JobKeeper fortnights starting on or after 28 September 2020 as well as determining whether an entity passes the new additional decline in turnover tests to access the JobKeeper extension from 28 September onwards. If an entity has already passed the original decline in turnover test for a JobKeeper fortnight before 28 September 2020 then there is no need to apply the original test again.

The updated alternative tests released by the Commissioner of Taxation are broadly similar to the alternative tests that were released in connection with the original decline in turnover test.

However, there are some key differences:

  • ‘Projected’ GST turnover no longer applies
  • Timing of supplies consistent with the Commissioner’s determination¬†
  • Substantial increase in turnover test modified
  • Irregular turnover test modified
  • Changes to sole trader or small partnership test

Download the guide to learn more about each of the above points…

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The material and contents provided in this publication are informative in nature only.
It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.

 

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