fbpx

Updates & Articles For your Business

Connolly and Associates support businesses to grow strategically and be well informed.

Jobkeeper 2 update

JobKeeper 2.0 Update

As Phase One of JobKeeper ends on 27 September, with final payments in October, JobKeeper 2.0 will be rolling out for eligible employers.

To be eligible for JobKeeper 2.0, businesses must satisfy a 30% decline in Turnover ( if Turnover < $1 billion), when comparing the July-September 2020 results to July-September 2019.

This is based on Actual turnover, not projected turnover, as it was in JobKeeper 1.0.

Payments will be reduced to $1,200/ fortnight ($750/fortnight if the employee works less than 20 hours per week), and the program will last until 3 January 2021.

From 4 January 2021, businesses will need to reassess their turnover. If they are down 30% when comparing October-December 2020 to October-December 2019.

If this criterion is met, the business will be eligible for the final phase of JobKeeper, in effect from 4 January to 28 March.
Payments in this final phase of JobKeeper will be reduced to $1,000/fortnight for employees ($650/fortnight if the employee works less than 20 hours per week).

Fair Work

Fortunately, most WA businesses will NOT be eligible for Job Keeper 2, however, there is an important HR concession worth noting.

Businesses that qualified for the first phase of JobKeeper, but not eligible for the second phase, will STILL be able to access Fair Work Act concessions until 28 March 2021 providing that they are experiencing at least a 10% decline in turnover.

The Fair Work Act concessions include:

  • The ability to reduce employees ordinary hours by 40% compared to their hours Pre-COVID
  • Directing them regarding work locations and duties of work

An Accountant must provide a certificate to the employer, declaring that the business’s turnover is down by 10%.

Critically, businesses with less than 15 employees, do not need the accountant’s declaration because they can make their own declaration.

If you need assistance or require certification let Connolly & Associates Accountants know or direct any queries to the Fair Work Ombudsman on 13 13 94 for more information on the Fairwork Concessions.

Please support and share...

BOOK A FREE TAX & ACCOUNTING CONSULTATION

There is no better way to experience how Connolly and Associates chartered accountants can help grow your business and financial success than booking a FREE, no obligation consultation.

OUR PARTNERS