Jobkeeper 2.1 Key facts and recommendations

The first tranche of JobKeeper ends on 27 September 2020. Read the ATO Jobkeeper 2.0 Extension announcement here.

We will work with you as soon as possible to know your eligibility status and plan for the future. This Jobkeeper period has shown us all how important it is to know and understand your financials and keep them as up to date as possible.

Please click to read our detailed summary of the Jobkeeper 2.1 rules in our 16 Page Client Summary

To receive JobKeeper from 28 September 2020, eligible employers need to assess their decline in turnover with reference to actual GST turnover for the September 2020 quarter (for JobKeeper payments between 28 September to 3 January 2021), and again for the December 2020 quarter (for payments between 4 January 2021 to 28 March 2021). From 28 September 2020, the JobKeeper payment rate will reduce and split into a higher and lower rate based on the number of hours the employee worked in a specific 28 day period prior to 1 March 2020 or 1 July 2020.

To access JobKeeper payments from 28 September 2020, there are three questions that need to be assessed:

1. Is my business eligible?
2. Am I and/or my employees eligible? and
3. What JobKeeper rate applies?

Our guide answers all of these questions and more. We also love this infographic from the Tax Institute which we emailed to you all in our last JobKeeper update on 17th August.
Your most pressing query will no doubt be Question 1, how will I know if my business is eligible?

The decline in turnover test

You will need to show that your actual GST turnover has declined in the September 2020 quarter relative to a comparable period (generally the corresponding quarter in 2019). See the actual decline in turnover test.

You also need to have satisfied the original decline in turnover test. However, if you:

  • were entitled to receive JobKeeper for fortnights before 28 September, you have already satisfied the original decline in turnover test
  • are enrolling in JobKeeper for the first time from 28 September 2020, if you satisfy the actual decline in turnover test, you will also satisfy the original decline in turnover test (except for certain universities). You can enrol on that basis.

Our Recommendation to you

Get your cloud file up to date and reconciled for income purposes as soon as possible after the month of September closes.
We need to enrol you again by the 14th October at the latest, and you will have payment obligations to comply with for your eligible employees.

Invite us into your cloud file if we are not already connected, and send us an email when your file is ready. We can run trading reports and profit and loss reports to track your eligibility based upon your YTD Turnover.
To know where you stand now, reconcile your income as at today and send us the reports to discuss. We can compare to the prior compatible period for analysis.

We can then discuss what happens in these two critical scenarios:
A) What happens next now that I am eligible again?
B) What do I do if I was eligible for JobKeeper before but my trading has improved, how will I manage my Cashflow?

We have invested substantial resources into supporting real-time financial and Single Touch Payroll reporting, including opening a Bookkeeping Division known as Keep My Books Online led by Natasha Clifton.
If managing compliance and financial reporting has been difficult to maintain during this period, we can now offer additional services to support your business.

Want to attend an Online Question and Answer session with us? 
Alexander will be hosting an Open Zoom Session on Friday 25th September at 1pm. The session will be a Q & A on JobKeeper 2.0 with members of the LMS Team. You are welcome to join us for our discussions and add any questions of your own.

Please contact us if you’d like to participate in the session and we will provide the details.Our LMS Advisory Covid-19 Resource website is constantly being updated with the latest details provided to us by the Government and we will continue to focus on keeping you well informed.

https://www.lmsadvisory.com.au/resources/coronavirus-resources-and-support/
https://www.lmsadvisory.com.au/resources/coronavirus-resources-and-support/jobkeeper/

Alexander Laureti is the Principal and Managing Director of LMS Advisory. He holds a Bachelor’s degree in Accounting and Law, and he is a Fellow of the CPA (Certified Practising Accountants) and a Chartered Tax Advisor. Alexander has over 17 years of experience as an accountant in Public Practice.
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