What’s new in JobKeeper 2.1?

Vania Wang • September 14, 2020

JobKeeper changes: What’s new in JobKeeper 2.1? "We can help you"

In response to the economic devastation caused by the coronavirus in Victoria, the government has decided to revise the second phase of the JobKeeper programme that was announced on 21 July 2020.

The programme was originally scheduled to complete on 27 September 2020.

JobKeeper 2.1 – The changes

On July 21 2020, the government decided to extend the scheme until 28 March 2021 owing to the ongoing pandemic. On 14 August 2020, the Treasurer announced several updates to the JobKeeper 2.0 programme.

The extension will run for an additional six months, from 28 September 2020 until March 2021. This is further divided into two phases: the first phase is comprised of 7 fortnights and the second phase of 6 fortnights.

Here’s a look at the important changes:

For the fortnight that commenced on 3 August 2020, the employment date will move from 1 March to 1 July. This new date could be in addition to the 1 March date, which would surely expand eligibility. However, if an employee previously nominated another employer (although no longer employed with them), they will become ineligible. Perhaps this was created to avoid double-dipping, however, this would need further clarification.
To be eligible for the first extension period, only the September quarter must have suffered a turnover decline of 30% or more.
To be eligible for the second extension period, only the December quarter must have suffered a turnover decline of 30% or more.
The two payment rates remain unchanged. However, the higher rate will apply when an employee worked for an average of 20 or more hours in the four weeks of pay periods either before 1 March 2020 or 1 July 2020.

A business may qualify for the first extension period and not the second if the December 2020 quarter turnover didn’t actually decline by 30% or more).

In the same way, if a business did not qualify for the current JobKeeper programme, but is expected to suffer a turnover decline of 30% or more, it can apply for JobKeeper 2.1 if they show an actual decline of 30% or more in the September quarter.

Applying for JobKeeper 2.1

Here’s a look at all the steps you need to take to apply for this business incentive programme:

Registration – The first step is to register your interest in the scheme. This lets the government know of your intention to participate.
Employee information – You must provide information about your employees, the number of employees on payroll as of the eligibility date.
Employee payments – Your employees will receive $1,500 each fortnight under this scheme, which will be subject to PAYG withholding. If an employee’s normal wage is lower than $1,500 a fortnight, it will be “Topped Up” to the sum of $1,500. We’ll help by adding a new payment line in your Quickbooks or Xero accounts to show the top-up amount for the duration of the scheme.
Employee notification – You must notify all eligible employees that you’ve included them in this scheme.
Inform the ATO – You must inform the Tax Office on a monthly basis.

We can help

The JobKeeper 2.1 scheme can be a lifesaver in these tough times. However, if applying for this scheme or keeping books becomes cumbersome, we are here to help. The experienced team of professionals at THN & Samios Partner can help maintain your books whilst you are on the JobKeeper 2.1 programme. Contact us today for more information.

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