1. Extension of the JKP to 28 March 2021
  2. Decline in the turnover test the new actual GST decline in the turnover test
  3. Wage condition for employees
    • ‘Reference periods’ for employees
    • Commissioner’s power to determine higher rate applies
  4. Eligible business participants
  5. Notification requirements

On 21 July 2020, the Government announced that the JobKeeper Payment (‘JKP’) would be extended by a further six months to 28 March 2021 on a scaled-back basis, with businesses being required to re- assess their eligibility to remain in the scheme.

The Coronavirus Economic Response Package (JobKeeper Payments) Amendment Bill 2020 (which received Royal Assent on 3 September 2020) gave effect to the extension of the scheme to 28 March 2021 and also made some adjustments to the existing Fair Work Act 2009 (‘FWA’) concessions that were put in place when the JKP scheme was originally implemented.

TAX TIP – Changes to the FWA concessions for ‘legacy employers’

As employers will be required to re-assess their eligibility for the JobKeeper scheme whereby they must satisfy a new and modified version of the decline in turnover test, some employers who previously qualified for the scheme may no longer qualify after 27 September 2020 (i.e., the original end date of the scheme). These employers are referred to as ‘legacy employers’.

Recent amendments have extended modified flexibilities under the FWA to legacy employers who are still experiencing at least a 10% decline in turnover. Importantly, these legacy employers will generally only be eligible for the FWA concessions where they have a ‘10% decline in turnover certificate’ issued by a registered tax agent, a BAS agent or a qualified accountant. Refer to NTAA COVID-19 update – Legacy employer certificate released on 15 September 2020 for more details.

Importantly, these Amending Rules do not replace the existing JKP rules, rather, they are an amendment to the existing rules to incorporate the previously announced dual payment rate system, the adjustments to employee eligibility relating to the relevant dates of employment (i.e., including both 1 March 2020 and 1 July 2020) and the new modified decline in turnover test.

This document does not consider the implications for ACNC-registered charities or religious practitioners.