Thanks to the Federal Government, our Australian community has the benefits of the COVID stimulus packages extended into 2021, called JobKeeper 2. This is the much anticipated continuation of the JobKeeper package operating since March 2020.

The JobKeeper changes can be summarised in 14 words courtesy of the Institute of Certified Bookkeepers: “Nothing changes before end-September. Then some employers become ineligible, and some receive less.”

This blog includes:

    • details of the JobKeeper package as it applies to churches and NFPs
    • a diagram in the Blog to help explain the timing and application of JobKeeper 2 as a visual summary
    • action items for you to help you get started now

NOTE: The values and percentages in this article are relevant only for churches and NFPs.


 

The JobKeeper package from September 2020 through March 2021

Overview in 3 points:

1. The employer organisation must document an ongoing actual minimum decline of GST Turnover of 15%
    AND the decline must be quarterly, AND

2. Only for eligible employees who were with you before 1 March with new eligibility criteria

3. The JobKeeper subsidy is reduced and the amount will depend on the
   number of hours worked by the employee in February 2020.


Here are the details of how JobKeeper 2 will apply, for Employers and Employees


 

PERIOD 1: September 28 through January 3

1. Employer Eligibility is retested each quarter:

The Turnover test must show an actual decline in GST Turnover of 15%, in BOTH:

  • quarter ended 30 Jun, 2020 compared with quarter ended 30 Jun, 2019, AND
  • quarter ended 30 Sept, 2020 compared with quarter ended 30 Sept, 2019

2. Employee eligibility will be split into 2 tiers:

a. Tier 1 – Employees who have actively worked for the organisation during the 4 weeks before 1st March, 2020 for 20 or more hours average, per week
b. Tier 2 – Employees who have worked less than 20 hours average in the 4 weeks before 1st March, 2020

3. JobKeeper 2 subsidies September 28 through January 3:

Subsidies are reduced per fortnight to:

    • Tier 1 = $1200 for employees who worked 20 hours average or more during Feb 2020
    • Tier 2 = $750 for employees who worked less than 20 hours average during Feb 2020

 

PERIOD 2: 4th Jan, 2021 through 28 Mar, 2021

1. Employer Eligibility is retested each quarter:
The Turnover test must show an actual decline in GST Turnover of 15%, in BOTH:

    • quarter ended September 30, 2020 compared with quarter ended September 30, 2019, AND
    • quarter ended December 31, 2020 compared with quarter ended December 31, 2019

2. Employee eligibility will again be split into 2 tiers:

a. Tier 1 – Employees who have actively worked for the organisation during the 4 weeks before 1st March, 2020 for 20 or more hours average, per week.
b. Tier 2 – Employees who have worked less than 20 hours average in the 4 weeks before 1st March, 2020

3. JobKeeper 2 subsidies 4th Jan, 2021 through 28 Mar, 2021:

Subsidies are reduced per fortnight to:

  • Tier 1 = $1000 for employees who worked 20 hours average or more during Feb 2020
  • Tier 2 = $650 for employees who worked less than 20 hours average during Feb 2020

 

Extra notes about the Turnover notes

    • The periods are fixed regardless of which month or quarter was used for the JobKeeper 1 decline calculation
    • The same Calculation basis is to be used, Cash or Accrual, as in JobKeeper 1.
    • Yes both/all Quarters must experience the 15% decline to be eligible
    • GST Turnover is to be calculated the same way as JobKeeper 1.

Benkorp’s ongoing bookkeeping & accounting clients – please note that we will be also communicating with you in more detail about your particular organisation situation soon.


 

ACTION ITEMS – What you need to do: 

Now

    • Assess the Church’s Actual GST Turnover for June Quarter 2020, and
    • Assess the Actual GST Turnover for June Quarter 2019
    • Measure the difference and assess if the Decline in Turnover is 15% or more

If the difference is not 15% or more then the JobKeeper 2 will not be applicable

 

1-14 October or before you pay any top-up in October

    • Assess the Church’s Actual GST Turnover for Sept Quarter 2020, and
    • Assess the Actual GST Turnover for Sept Quarter 2019
    • Measure the difference and assess if the Decline in Turnover is 15% or more

If the difference is not 15% or more then the JobKeeper 2 will not be applicable

 

1-14 January or before you pay any top-up in January.

    • Assess the Church’s Actual GST Turnover for December Quarter 2020, and
    • Assess the Actual GST Turnover for December Quarter 2019
    • Measure the difference and assess if the Decline in Turnover is 15% or more

If the difference is not 15% or more then the JobKeeper 2 will not be applicable

Anyone with questions or seeking assistance please contact us directly:

JobKeeper Questions