In this sponsored post, chartered accountant GAIL FREEMAN has some useful advice about the changes, and future changes, to JobKeeper.
YANG’S business has been receiving JobKeeper since March, but takings are still down.
“It would be helpful if I could continue to receive it until we are back to normal. Am I eligible to receive JobKeeper after September?” he asked,
I confirmed that the federal government had announced JobKeeper 2.0 and then JobKeeper 3.0 and told Yang that all my comments related to JobKeeper 3.0, which supersedes JobKeeper 2.0.
“The most important thing to tell you is that the legislation has not gone through parliament yet,” I said.
“The next sitting of parliament is on August 24 so we should have the new legislation by early September. So everything I tell you is based on the announcements and not actual legislation which could be slightly different.
“To find out if you can continue to receive JobKeeper you need to compare your actual GST turnover for the September 2020 quarter against the actual GST turnover for the September 2019 quarter.
“If your GST turnover has gone down by 30 per cent you are eligible to continue to receive it as your business turnover is less than $1 billion.
“However, the amount of the JobKeeper fortnightly payment also reduces from $1500 to $1200 per fortnight for eligible employees who worked an average of more than 20 hours per week in the four weeks before March 1, 2020.
“For those employees who worked less than 20 hours a week on average in that four-week period then the payment reduces to $750 per fortnight.
“Similarly, in January 2021 there is another extension to JobKeeper. To be eligible for this you compare your actual GST turnover for the December 2020 quarter against the actual GST turnover for the December 2019 quarter and if your turnover has gone down by 30 per cent then you are eligible for JobKeeper for the next three months. Again this is at the reduced fortnightly rate of $1000 for eligible employees who worked an average of more than 20 hours per week. For those who worked less than 20 hours per week the fortnightly rate reduces to $650 per fortnight.”
Yang said he was sure his business would continue to be eligible based on the business turnover since March.
“There are a few other things I need to tell you,” I told him.
“If you have any employees who were not eligible for JobKeeper 1.0 they may now be eligible. If you have new employees who were employed by July 1, they may be eligible if they satisfy the other criteria that are required to receive JobKeeper.
“Casuals who did not have 12 months of employment at the original date of March 1, may now have accumulated 12 months continuous service so they may be eligible for JobKeeper from July 1.
“I should also remind you that the cash flow boost will cease at the end of September and that will not be extended. So your last cash flow boost payment will be received by you in October.”
Yang said: “Thank you so much, Gail. I am happy that I should be able to claim JobKeeper after September and I will come back to see you to assist me with the claim.”
If you need help with your JobKeeper eligibility or any other tax or accounting matter, contact the friendly team at Gail Freeman & Co Pty Ltd on 6295 2844 or visit gailfreeman.com.au
Disclaimer: This column contains general advice, please do not rely on it. If you require specific advice on this topic please contact Gail Freeman or your professional adviser.