As JobKeeper comes to a close in March, there are a few important dates that businesses and entities should be aware of for its arrangements from 4 January 2021. Here are a few key dates you should know about if you are planning to claim JobKeeper for this period:
28 January 2021
JobKeeper business monthly declarations for December must be lodged by 28 January 2021. This declaration should be used for 3 JobKeeper fortnights, which covers the period from 23 November 2020 to 3 January 2021.
31 January 2021
If you are accessing JobKeeper for the first time from 4 January 2021, you have until 31 January 2021 to enrol with the ATO and lodge your ‘check decline in turnover’ form for the December 2020 quarter.
You will also need to identify any eligible employees and eligible business participant and advise the ATO whether the higher or lower payment rate applies to these individuals. You will then have 7 days after notifying the ATO of employee details and payment rates to notify the individual of this.
All employers accessing JobKeeper for fortnights 21 (4 January 2021 – 17 January 2021) and 22 (18 January 2021 – 31 January 2021) must have met the wage condition by 31 January 2021. These payment rates and conditions are as follows: $1,000 per fortnight per employee or business participant for those who worked 80 hours or more in the relevant period, and $650 per fortnight per employee or business participant who worked less than 80 hours.
From 1 February 2021
Clients who have accessed JobKeeper before 4 January 2021 but will continue to access JobKeeper from this date onwards must submit their ‘check decline in turnover’ form with the ATO before the monthly business declaration is submitted for the month of January, which can be done from 1 February 2021.
Questions You May Have
If I did not previously qualify for JobKeeper, can I access it from 4 January 2021?
Potentially yes, you can access JobKeeper for the period between 4 January 2021 and 28 March 2021 even if your entity didn’t qualify for JobKeeper for the period between 28 September 2020 and 3 January 2021 or for the original JobKeeper scheme period that ended on 27 September 2020.
For example, a business may now meet the conditions for the “decline in turnover” test where it didn’t before the December 2020 quarter. The fact that an entity has not previously enrolled in JobKeeper or met the eligibility conditions prior to the start of the latest phase of the JobKeeper scheme should not prevent it from accessing JobKeeper from 4 January 2021.
Do employees need to complete a new nomination form for JobKeeper from 4 January 2021?
Employees do not need to provide a new enrolment form to their employer if they have already provided a valid nomination form for previous JobKeeper periods.
Employers should ensure that they have a copy of the original form on file and a copy of the notification that they sent to the employee confirming that their details were provided to the ATO and advising the employee of their applicable payment rate.
Where employees have been stood down or working reduced hours and have been working for someone else. If the original employment relationship remains intact (their employment has not been terminated) then the fact that the employee is performing some work for another entity doesn’t necessarily prevent ongoing access to JobKeeper with the original employer.
GST Turnover calculation methods
The additional decline in turnover test for JobKeeper from 4 January 2021 compares actual GST turnover in the December 2020 quarter (October 2020, November 2020 & December 2020) compared to the same period in 2019 (alternative tests are available in some instances).
Entities that are registered for GST must use the same method that is used for GST reporting purposes. For example, if the entity is registered for GST on a cash basis then a cash basis needs to be used to calculate current GST turnover for the purpose of the JobKeeper decline in turnover test for the December 2020 quarter.
Where payments to the entity have been received in advance then the entity will normally need to recognise these payments as part of the GST turnover calculation, even if the goods or services have not been provided to the customer yet. For example, if the client accounts for GST on a cash basis then they would need to recognise the payment for GST purposes as it is received and include it in their GST turnover calculation, even if the services are yet to be provided.
Entities that are part of a GST group need to calculate their GST turnover as if they were not part of the group. That is, supplies made by another group member should not be included in GST turnover for the purposes of the decline in turnover test.
Have further questions about the latest JobKeeper period?
Whether you are continuing JobKeeper or just become eligible for the first time – don’t hesitate to contact our friendly staff here at the BIS Cosgrove office with any questions or concerns you may have!
We can be contacted by phone (07 5598 3800) or email (email@example.com). All contact details can be found on our “Contact Us” page.