This extension period will run from 28 September 2020 to 3 January 2021.
You will need to demonstrate that your actual GST turnover has fallen in the September 2020 quarter (July, August, September) relative to a comparable period (generally the corresponding quarter in 2019).
If you believe you are eligible based off the above, your next step is to assess employee tiers.
Business and NFP
From 28 September 2020, you must do all of the following:
Work out if the Tier 1 or Tier 2 rate applies to each of your eligible employees and/or eligible business participants and/or eligible religious practitioners.
Notify the Commissioner and your eligible employees and/or eligible business participants and/or eligible religious practitioners what payment rate applies to them; and
During JobKeeper Extension 1, ensure your eligible employees are paid at least,
$1,200 per fortnight for Tier 1 employees $750 per fortnight for Tier 2 employees
During JobKeeper Extension 2, ensure your eligible employees are paid at least
Eligible employees who worked for 80 hours or more in the four weeks of pay periods before either 1 March 2020 or 1 July 2020, and
Any other eligible employees and eligible business participants.
Eligible business participants who were actively engaged in the business for 80 hours or more in February and provide a declaration to that effect.
Decline in turnover test
JobKeeper Extension 1
The actual decline in turnover test is satisfied for JobKeeper extension 1 when your current GST turnover for the quarter ending 30 September 2020 (July, August and September) has declined by the specified shortfall percentage (30%, 50% or 15%) in comparison to your current GST turnover for the quarter ending 30 September 2019.
What is different?
How to work it out
Unlike when you calculated the original decline in turnover test, you do not use your projected GST turnover for the relevant quarter being tested. You use your current GST turnover.
To work out which supplies you have made in the turnover test period, you must use the accounting basis you used for GST reporting purposes. Depending on your circumstances, you could use a cash basis or a non-cash basis.
A GST accounting basis will apply to allocate supplies to a test period regardless of whether:
o the supply was a taxable supply
o you report GST on a monthly or quarterly basis, or
For many businesses registered for GST, this calculation will match the ‘total sales’ reported at G1 on your BAS minus GST payable (1A), where applicable.
If you are not registered for GST, you will work out your turnover using either the GST cash or non-cash basis of accounting.
You can provide additional turnover information to demonstrate that you satisfy the actual decline in turnover test for the September quarter from the start of October onwards. You must provide it before you complete your November monthly declaration.
Alternative tests for determining actual decline in turnover may be available in some circumstances. These will apply in a similar way to the alternative tests for the original decline in turnover test. However, they must be applied on the basis that the turnover test period is a quarter.
There are different options for the 28-day reference period
There are different options for the 28-day reference period that you must use to test whether your employee satisfies the 80-hour threshold.
Your 28-day reference period or periods are based on when your pay cycle ends and therefore won’t be the same for all employers or employees.
o the pre-March period which is the 28 days which finish on the last day of the last pay cycle that ended before 1 March 2020, or
o the pre-July period which is the 28 days which finish on the last day of the last pay cycle that ended before 1 July 2020.
Your pay cycle for an employee may not be the same as the period between the dates you actually pay them. For example, the amount you pay an employee each Friday may be for the hours they worked in a week ended on the previous Wednesday. In this case your employee's pay cycle is the week ended on Wednesday.
Your employee only needs to satisfy the 80-hour threshold in one of the 28-day reference periods. If they satisfy it in one reference period, you do not need to determine if they satisfy it in other reference periods.
If your pay cycle is longer than 28-days for your employees (for example monthly), you will need to perform a pro-rata calculation.
If you have a monthly pay cycle for your employees, your employees will meet the 80-hour threshold if their hours worked, hours of paid leave and hours of paid absence on public holidays. Click the link for more details.
Alternative reference period
There may be circumstances where the pre-March or the pre-July reference periods are not suitable for some of your eligible employees.If your employee does not satisfy the 80-hour threshold in the standard pre-March or pre-July reference periods, you should consider whether they satisfy it using an alternative reference period.