The Australian Government has announced to extend the JobKeeper scheme to 28 March 2021 to continuously support those businesses that are still significantly affected by COVID-19. During this unprecedented difficult time, our local CLY Tax Accountants Ringwood can assist you in conducting required turnover test and applying for the JobKeeper Extension 2 payment. This JobKeeper Extension 2 Payment covers from 4 January 2021 to 28 March 2021.
The criteria for JobKeeper Extension 2 are similar to JobKeeper Extension 1 which means you will be assessed based on your actual GST turnover reduction rather than projected GST turnover reduction to meet the turnover test. This test is met when your actual GST turnover for December 2020 quarter has fallen relative to the December 2019 quarter by a specified percentage (15%, 30% or 50% depending on the business structure and sales). If you stop to meet the actual decline in turnover test, you have to inform your employees that they will not receive JobKeeper payments any longer. When working out the GST turnover for the two periods compared, generally you need to calculate GST using the same accounting method as you reported on Business Activity Statement (BAS). This could be either the cash basis or accrual basis. There is also alternative tests that may be applied to you in special circumstances, e.g. if the business December 2019 quarter sales didn’t reflect the correct business taxable supply. The detailed rules and guidance for the turnover tests can be found on ATO’s website.
Two tiers of payment rates can be applied for your eligible employees:
- Tier 1: $1,000 per fortnight before tax withheld for employees working 80 hours or more in the four weeks before either 1 Mar 2020 or 1 July 2020
- Tier 2: $ 650 per fortnight before tax withheld for other employees.
Similar payment tiers requirement applies for self-employed people or people claiming as business participant.
If you are experiencing difficult times due to the COVID-19 and considering applying for JobKeeper Extension 2, our CLY Tax Accountants & Bookkeepers Ringwood are happy to help with our professional accounting knowledge and services. We are also available for any assistance regarding business accounting, bookkeeping and tax return Ringwood needs.
For more information or to make an appointment to discuss your situation in detail, please contact CLY Tax Accountants Ringwood. We are here to help you get through this tough time and assist you with all your tax and accounting needs in Ringwood as well as other surrounding suburbs.