JobKeeper Payment Extension 2 – Extra Time for Lodgement

Phew! We can all take a break over Christmas and New Year after all. The ATO has extended the deadlines for both the December monthly declaration and the second extension period.

December declarations are due by 28 January 2021.

The wage condition for payments made between 21 December and 3 January has been extended to 4 January 2021.

From 4 January, the second JobKeeper extension period begins. The decline in turnover forms must be submitted by 31 January 2021, and the same date applies to meet the wage condition for fortnights starting on 4 January and 18 January.

JobKeeper Payment Extension 2

The rates of payment will change from 4 January and drop to $1,000 per fortnight for Tier 1 employees or business participants, and $650 per fortnight for Tier 2.

Businesses may be eligible for JobKeeper extension 2 even if they were not eligible for extension 1.

BAS Agents Next Steps
  • Review clients who were on the original JobKeeper scheme, even if they did not qualify for extension 1.
  • Schedule time now to assess the actual turnover of the December quarter and compare to December 2019.
  • Note all clients that may require an alternative test.
  • Liaise with business owners to check hours worked for all employees – classify into tier 1 or tier 2 payment.
  • Finalise monthly/quarterly accounts as soon as possible after end of December to assess eligibility for extension 2 from 4 January to 28 March 2021.
  • Remember to keep all records to verify hours worked by employees and business participants and also to keep workpapers to prove decline in turnover.
Reread the AAT October newsletter for more details on the alternative turnover test and employer obligations.

JobMaker Hiring Credit Information for Tax and BAS Agents

The ATO has published a handy fact sheet for business owners that informs them of all the information required by a tax or BAS agent.

Give this fact sheet to your clients to let them know what you require.