JobKeeper 2.0 Extension Legislated

FAQ Business Training and Government sources

The Australian Federal Government passed the JobKeeper 2.0 Extension legislation into law 1 September 2020. Here we let you know how this will impact you and your business.

JobKeeper Business Stimulus in Australia in an effort to lessen the impact on the welfare system, the unemployment rate and to help employers retain staff for an eventual rebound post the Coronavirus Covid-19 #crisistrifecta *

You can look at prior information about the original JobKeeper here.

Please ensure all information you obtain is verified back to an original source (which is not social media, regular media or even us 🙂 ).

* THIS PAGE IS BEING UPDATED AS THINGS EVOLVE – LAST UPDATED 3 September 2020* 

JobKeeper 2.0 has been legislated as at 1 September 2020. There are two extension periods of a quarter each, the first commencing on 28th September 2020. We will add to this post key information, but in the meantime you can check to source yourself:

Legislation Coronavirus Economic Response Package (Jobkeeper Payments) Amendment Bill 2020

ATO website

Treasury update 

JobKeeper update 3 September 2020

The Bill was passed earlier this week and after wading through 97 pages of Bill and Explanatory memorandum it basically said very little!! The entire focus was JobKeeper enabling directions and agreements*.
 

Still waiting on the detail …

The only thing it did with relation to the extension of payments, tiers, turnover etc is extend the JobKeeper date to 28 March 2021!
 
Absolutely no other details … yet. So again we wait.
 
This link to the ATO (put up yesterday – reference QC63534, gives as much information as is known (including I notice a change to say 80 hours rather than an average 20 hours per week). So sorry but wait we must as it is clearly not all completely sorted!
 

JobKeeper Enabling Directions and Agreements

* The JobKeeper enabling directions allow for these to continue to be issued for the most part by qualifying employers who will still be on JobKeeper, and legacy employers who will no longer be eligible for JobKeeper from 28 Sept 2020 but who are still 10% down at least in turnover. If this applies to you let me know and I can include further information. Basically it will require a certificate to confirm you’re eligible from a specified person (eg accountant) or a small business will need to provide a statutory declaration.
 

JobKeeper changes legislated 14 August 2020 – must read for employers

Employers will be aware JobKeeper is a one in, all in model. However many are NOT aware of a change to JobKeeper which applies to August and September (from 3rd August). This may REQUIRE you to top up additional eligible JobKeeper employees.

If you have employees who were ineligible at 1 March 2020, there are some situations where they will now be eligible as at 1 July 2020 which is the new reference date. 

You may also have hired new part-time or full-time employees by 1 July 2020. They ARE in many circumstances eligible for JobKeeper from the fortnight which commenced 3rd August 2020. You must obtain their valid nominations and meet the wage condition (still $1500 per fortnight) by 31 August for the two affected fortnights. Employees can now renominate a replacement employer in some circumstances (where they left their JobKeeper business or employer before 1 July 2020 and commenced new employment with you before 1 July 2020).

1 March 2020 is preserved, so there is no need to retest eligibility of employees who have had no change in employment. You will end up paying and receiving 3 fortnights for August for these employees due to the fortnight end dates.

JobKeeper changes announced but NOT yet legislated (at 23 August 2020)

The Government has announced it intends to extend JobKeeper for two 3 month periods and introduce tiers to JobKeeper. This HAS NOT yet been legislated. Please hold on a little longer and get the facts.

JobKeeper errors in claiming (at 19 August 2020)

The ATO has commenced auditing and is finding a number of people who have over claimed or claimed incorrectly. They advise if an error was due to a genuine and honest mistake or misunderstanding, or through reliance on information from employees or the ATO itself which the business deemed to be correct, then the ATO will NOT in many cases seek a repayment of the overpaid funds.

However if the over payment was not reasonable or honest then you can be expected to repay, and if fraudulent face other penalties.  

The ATO also notes many employers are unnecessarily paying full super guarantee on the JobKeeper amount. You only need to pay super guarantee on the amount of pay for the actual hours worked if that works out less than $1500 per fortnight.

 

The following video is a Facebook Live conducted 20 August 2020 on the above issues.

2020-05-25_Key-Dates-ATO-JobKeeper-Payments

Please note in the dates table above you can add:

  • 1 July 2020 new reference date for eligible employees
  • 3 August 2020 start date for paying additionally eligible employees JobKeeper
  • 31 August 2020 JobKeeper wage condition fulfilment date for the above employees

We can not yet add in the extension dates as they have NOT been legislated (as at 23 August 2020).

There is much more to this time of crisis than JobKeeper

We’ve started a 30 part blog and video series about Coping With Crisis. Join us on the blog, on Facebook or our YouTube Channel to keep up with the new suggestions. 

*The Crisis Trifecta (#crisistrifecta)

I’m calling this a crisis trifecta hence why it’s unprecedented and causing so much havoc. It started with the health crisis of Coronavirus, quickly escalated into a financial crisis, both of which are causing a lifestyle crisis. It’s likely to end back with health, but this time mental health.
Not all three crises will affect everyone, and you may be at different stages of grief for each crisis. This all makes this crisis trifecta incredibly hard to manage. 🙁 Although most people are talking of the first two crises, the lifestyle crisis isn’t being talked about as much. Plus the health crisis is two-fold – the viral impact and mental health.

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Australian Government Coronavirus Business Stimulus Package

For information on the earlier stimulus measures revert back to our page on Coronavirus Resources and the first Facebook Live on the topic. You can check out the replay here.

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