ATOFinance

JobKeeper 2.0

On 21 July 2020 the Australian Government announced that there would be an extension of JobKeeper for a further six months, in a somewhat restricted form – known as JobKeeper 2.0. 

SPECIAL NOTE: The current JobKeeper is continuing as is until its completion on 27 September 2020. There is nothing a church needs to do to continue receiving the current JobKeeper payments.

JobKeeper 2.0 payments come into effect from 28 September 2020. It is not quite the same as the original JobKeeper in several ways, but it may be that your church continues to be eligible.  Here’s what we know so far:

  • The threshold reduction of 15% of turnover still applies to churches registered with ACNC .
  • The income reduction will not be based on anticipated turnover as optioned in the first version, but on actual figures based on the June, September and December quarters as per your lodged BAS Return. You cannot use monthly P&L figures or income projections to demonstrate eligibility any more.
  • With JobKeeper 2.0, the church will need to:
    • Re-prove its eligibility for the extension based on BAS Returns to the end of June and September to be eligible for JobKeeper payments from October to December.
    • And again re-prove its eligibility based on BAS Returns to the end of June, September and December to be eligible for payments from January to March.
  • Staff eligibility for JobKeeper remains the same.
  • Payments for staff will be lower depending on hours worked.
    • For staff working 20 hours or more per week up to 1st March this year, the $1500 per fortnight per employee now will reduce to $1200 per fortnight for October to December, and $1000 per fortnight for January to March.
    • For staff working less than 20 hours per week up to 1st March this year, the figures will be lower – $750 per fortnight reducing to $650 per fortnight.
  • Employees who earn less than these amounts need to be paid at least the amount paid by the scheme, but not the $1500 per fortnight they will be receiving through to 28 September 2020.

JobKeeper has been an invaluable help to our churches, but we cannot assume that the payments will automatically continue.  This will need to be reviewed church by church, and will depend on financial performance in the months to come.

For more information on this extension and an FAQ with some useful examples, visit the Treasury website.

For the latest information on the current JobKeeper system, visit the ATO website.


Photo by Markus Winkler on Unsplash