COVID19 Stimulus 2021 Update: the latest on what you need to know

JobKeeper extension 2  

https://www.ato.gov.au/general/jobkeeper-payment/

Period: From 4 January 2021 to 28 March 2021

Eligibility: Must meet actual decline in turnover test for December 2020 quarter (30% reduction relative to December 2019 quarter) as well as satisfying original decline in turnover test.

Exceptions

  • If you were already receiving JobKeeper prior to 28 September you have already satisfied original decline in turnover test.
  • If enrolling for first time, you will need to satisfy both original and actual decline in turnover tests to be eligible.

In summary, you may be eligible for JobKeeper extension 2 even if you were not eligible for extension 1.

Rates

  • Tier 1 (T1): $1,000 per fortnight (before tax)
  • Tier 2 (T2): $650 per fortnight (before tax)

You need to:

  • Determine if Tier 1 or 2 rate applies to each eligible employee and/or eligible business participant.
  • Notify ATO what rate applies to all eligible recipients.
  • Ensure eligible employees are paid at least $1,000 per fortnight if T1 or $650 per fortnight if under T2.

What doesn’t change:

  • If you have already enrolled in JobKeeper before 28 September you don’t need to re-enrol for the extension.
  • You don’t need to reassess employee eligibility if you were already claiming before 28 September

JobMaker Hiring Credit

https://www.ato.gov.au/General/New-legislation/The-Australian-Government-s-economic-response-to-coronavirus/JobMaker-Hiring-Credit/

What does it mean? You can potentially receive payments for new eligible employees you hire between 7 October 2020 and 6 October 2021.

Eligible Employers:

  • Will be able to register for JobMaker Hiring Credit from 6 December 2020
  • Can claim payments in arrears from 1 February 2021
  • Can claim up to 12 months of payments for each additional eligible employee from their start date
  • Cannot claim JobKeeper and JobMaker at the same time

Eligible employees:

  • Must be ages 16 – 35 years
  • Start employment on or after 7 October 2020 and before 7 October 2021
  • Must increase total employee head count and payroll
  • Worked an average of 20 hours per week during JobMaker period
  • Have received one of the following payments for at least 2 fortnights in the 6 fortnights prior to employment: JobSeeker, Parenting Payment, and Youth Allowance (unless they were undertaking full time study or apprenticeship)

Where to start:

  • Check that your business is eligible
  • Check that new employees are eligible
  • Register using ATO online services

Recent Articles

Changes for MYOB subscription holders

18th May 2022

There have been some important changes to MYOB subscription payments. Up until this point, Roberts & Morrow have managed your subscription (practice... Read More

Merger Date & Location Announced

13th May 2022

We would like to provide a further update to clients on our plans in relation to the proposed merger... Read More

All the Winners from the Fleece to Fashion Gala Awards 2022

12th May 2022

The Fleece to Fashion Awards was held at the Deeargee Woolshed on Monday and attracted fashion design entries from... Read More

COVID-related support for SMSFs

27th April 2022

Because of the financial impacts of COVID-19, you (in your role as trustee of an SMSF), or a related... Read More