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COVID19 Stimulus 2021 Update: the latest on what you need to know

Date: 1 February 2021

JobKeeper extension 2  

https://www.ato.gov.au/general/jobkeeper-payment/

Period: From 4 January 2021 to 28 March 2021

Eligibility: Must meet actual decline in turnover test for December 2020 quarter (30% reduction relative to December 2019 quarter) as well as satisfying original decline in turnover test.

Exceptions

  • If you were already receiving JobKeeper prior to 28 September you have already satisfied original decline in turnover test.
  • If enrolling for first time, you will need to satisfy both original and actual decline in turnover tests to be eligible.

In summary, you may be eligible for JobKeeper extension 2 even if you were not eligible for extension 1.

Rates

  • Tier 1 (T1): $1,000 per fortnight (before tax)
  • Tier 2 (T2): $650 per fortnight (before tax)

You need to:

  • Determine if Tier 1 or 2 rate applies to each eligible employee and/or eligible business participant.
  • Notify ATO what rate applies to all eligible recipients.
  • Ensure eligible employees are paid at least $1,000 per fortnight if T1 or $650 per fortnight if under T2.

What doesn’t change:

  • If you have already enrolled in JobKeeper before 28 September you don’t need to re-enrol for the extension.
  • You don’t need to reassess employee eligibility if you were already claiming before 28 September

JobMaker Hiring Credit

https://www.ato.gov.au/General/New-legislation/The-Australian-Government-s-economic-response-to-coronavirus/JobMaker-Hiring-Credit/

What does it mean? You can potentially receive payments for new eligible employees you hire between 7 October 2020 and 6 October 2021.

Eligible Employers:

  • Will be able to register for JobMaker Hiring Credit from 6 December 2020
  • Can claim payments in arrears from 1 February 2021
  • Can claim up to 12 months of payments for each additional eligible employee from their start date
  • Cannot claim JobKeeper and JobMaker at the same time

Eligible employees:

  • Must be ages 16 – 35 years
  • Start employment on or after 7 October 2020 and before 7 October 2021
  • Must increase total employee head count and payroll
  • Worked an average of 20 hours per week during JobMaker period
  • Have received one of the following payments for at least 2 fortnights in the 6 fortnights prior to employment: JobSeeker, Parenting Payment, and Youth Allowance (unless they were undertaking full time study or apprenticeship)

Where to start:

  • Check that your business is eligible
  • Check that new employees are eligible
  • Register using ATO online services

Start today

To discuss with one of our estate planning experts. Start by emailing us at enquiries@rm.net.au

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