The first tranche of JobKeeper ended on 27 September 2020. We look at the issues for those seeking to qualify for the second tranche of JobKeeper and for those no longer eligible.
If your business is no longer eligible for JobKeeper payments, there are a few things you need to do:
- Advise your employees and business participant. For anyone receiving JobKeeper payments from your business, you should advise them in writing that the business is no longer eligible, JobKeeper payments ceased on 27 September 2020, and their pay will revert to the conditions that apply under their employment agreement. This is particularly important for those who have been receiving top-up payments.
- Ensure payroll adjusts – Double check your payroll to ensure that top-up JobKeeper payments have been removed from 28 September 2020 onwards.
Make sure you keep all of your records relating to JobKeeper including your calculations and rationale for the decline in turnover test, your employee JobKeeper nomination forms, and any other records for at least five years.
What’s the 10% decline in turnover test?
The 10% decline in turnover test is a test that enables employers previously participating in JobKeeper to continue to use the JobKeeper provisions (with some modifications) under the Fair Work Act. These employers are ‘legacy employers’.
This test does not impact on your business’s eligibility to receive JobKeeper payments, it only impacts on an employer’s use of the JobKeeper provisions under the Fair Work Act.
If an employer qualifies under the 10% test, they can:
- Issue JobKeeper enabling stand down directions (with some changes)
- Issue JobKeeper enabling directions in relation to employees’ duties and locations of work
- Make agreements with employees to work on different days or at different times (with some changes).
Employers can continue to utilise the JobKeeper provisions if they:
- Previously participated in the JobKeeper scheme but no longer qualify (or choose not to participate) from 28 September 2020, and
- Can demonstrate at least a 10% decline in turnover for a relevant quarter and get a certificate from an eligible financial service provider (small business employers can make a statutory declaration).
To meet the turnover test, a legacy employer needs to demonstrate at least a 10% decline in actual GST turnover for the quarter in 2020, when compared to the same quarter in 2019. See Legacy employers on the Fair Work Ombudsman’s website.