JOBKEEPER 2.0 PAYMENTS FROM 28 SEPT ONWARDS - XERO JOBKEEPER 2 - TODAYS WEBINAR -FAIR WORK -JOBKEEPER 2 PAYMENT TO EMPLOYEES
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9/21/20
Xero JobKeeper 2 10am 21 Sept.
JobKeeper 2.0
Payments from 28 Sept onwards
1
Todays § JobKeeper 2.0
Webinar - Fair Work 10% Decline
- ATO wage Subsidy 30% decline
-Fair Work
-JobKeeper 2
Payment to
employees
Sept and
beyond
2
1
9/21/20
Your Presenters
Leanne Berry
Matthew Addison
Technical Resources
Executive Director
and Support
3
1 minute
background
Where we come from
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2
9/21/20
JobKeeper 1
§ Employment as of 1 March
§ 30% Decline in Projected Turnover
§ Monthly Declaration
§ $1500 for all employees – one in all in
§ Ends 27 September
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JobKeeper 1.1
As from 3rd August
§ Retest for employee eligibility as of 1 July
- New Employees who started
- Casuals re-assess 12 months anniversary
- Turned 18 (or financially independent students turned 16)
§ Can swap employers for JK (if employment ceased)
§ No new entities – Employer test is still 1 March
https://treasury.gov.au/sites/default/files/2020-08/Fact_sheet-JobKeeper_Payment_extension.pdf
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3
9/21/20
Jobkeeper 2.0
§ Fair Work
§ Wage Subsidy - Payments
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8
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9/21/20
Jobkeeper 2.0
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What the changes were
§ Extend JK system until 28 March 2021
§ Allow ATO to share JK protected information with other
Government Agencies
§ Extend temporary JK provisions of Part 6-4C of the Fair
Work Act until 28 March 2021
- Except for the Annual Leave provisions (still expire as of
28 September 2020)
- JK “Qualifiying” employers access full provisions
- “Legacy” employers modified provisions
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9/21/20
Extension to
JobKeeper Fair
Work Directions
Part of JobKeeper 2.0
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The intent of the extension
§ Legislative amendment is the only way to deliver rapid,
temporary changes across the entirety of the national
system to facilitate job-saving workplace arrangements for
employers who qualify for the JobKeeper scheme or have
previously qualified for the JobKeeper scheme and remain in
distress.
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69/21/20
JK 2.0 changes
§ Qualifying employers – provisions continue
§ Legacy employers
- Days and times of work: cannot result in the employee
working less than 2 consecutive hours in a day
- stand down directions but only to reduce that employee’s
ordinary hours to a minimum of 60% of the employee’s
ordinary hours as they were at 1 March 2020
- 7 days notification periods
§ Annual Leave provisions expire as of 28 September
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Expiring Annual leave provisions
§ Before 28 September
- Employers can request employees agree to take annual
leave so long as two weeks remain, &
- Employers and employees can agree to take annual leave
at half pay
§ No extension of the Annual Leave Provisions for anyone
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79/21/20
Fair Work JK enabling Directions
– eligible employers
§ If an employer continues to be eligible for JK payments (ie
30% decline and receiving subsidy from ATO) then they
“Qualify” and can continue to use the JK enabling directions
§ If not on JK, but they did receive one or more JK payments
and still have a 10% decline then they are a “legacy”
employer and can use modified JK enabling directions
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Minimum Hours – Legacy employers
§ cannot reduce an employee’s hours to zero (qualifying
employers can)
§ can only reduce an employee’s hours to a minimum of 60%
of the employee’s ordinary hours of work, as assessed on 1
March 2020
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89/21/20
JK Enabling Directions from 28 Sept. 2020
All
§ Notification period of 3 days
§ Consultation requirements
§ Comply with payment obligations to employees
§ Right for employees to request to engage in reasonable
secondary employment or undertake training or PD.
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“Legacy” Employers modified Directions
§ Longer notification period (7 days, it was 3)
§ Expanded consultation requirements
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99/21/20
10% Decline
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10% decline means what
§ They are a “Legacy” employer
§ If employer did receive one or more JK payments in the
March to September period &
§ Based on actual GST Turnover for the quarter
§ Same basis of calculation as for JK 2.0 Eligibility
§ Decline of 10% in actual GST turnover
- Declared by employer or Advisor
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109/21/20
Definitions
§ Definitions for the purpose of calculation of the 10% decline
in turnover are the same as for JK Employer eligibility
§ Set in the JK payment rules
§ Eligible financial service provider:
- A registered tax agent or BAS agent; or
- A qualified accountant
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Timing
Testing periods
§ Quarter ended 30 June 2020 -> for times before 28 October 2020
§ Quarter ended 30 Sept. 2020 -> for times 28 October to 27 Feb. 2021
§ Quarter ended 31 Dec. 2020 -> for times after 28 February 2021
§ Compare 2020 Quarter to the 2019 Quarter
§ Retest each quarter
§ Question the month of October if I didn’t decline in June but did in Sept?
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119/21/20
10% decline is NOT about payments
§ Please Note: The 10% decline is about the Fair Work
Act and the JobKeeper Directions
§ It has nothing to do with the ATO administered JK
Payments to employees and the subsidy
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The Certificate
789GCD 10% decline in turnover certificate
(1) An eligible financial service provider may issue a written
certificate that:
(a) relates to a specified employer; and
(b) confirms that the employer satisfied the 10% decline in
turnover test for the designated quarter applicable to a
specified time.
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129/21/20
Who can issue the Certificate
§ Employers with less than 15 employees (headcount)
- Self assess
- Self issue through a Statutory Declaration.
§ Other employers
- “eligible financial service provider”
- Includes BAS Agents / Tax Agents
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Who cannot issue certificate
(a) a director or employee of the employer; or
(b) an associated entity of the employer; or
(c) a director or employee of an associated entity of the
employer.
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139/21/20
Must obtain the certificate in time
§ If not obtained
- Directions cease (28/10 or 28/2)
- No new directions unless new certificate obtained and all
processes followed to issue new directions
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Implication of signing the certificate
§ This requires the eligible financial service provider to
§ confirm that the test has been met based on the
information provided, and
§ does not constitute an audit or assurance engagement.
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Employers Information
(3) An employer must not give information to an eligible financial service provider if:
(a) the information is given in connection with the issue of a 10% decline in
turnover certificate that covers the employer for the designated quarter
applicable to a particular time; and
(b) the information:
(i) is false or misleading; or
(ii) omits any matter or thing without which the information is
misleading;
and
(c) the employer knows that the information:
(i) is false or misleading; or
(ii) omits any matter or thing without which the information is misleading.
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Small Business Employer
Fewer than 15 employees (headcount)
Statutory Declaration
§ Replaces the external financial service provider requirement
§ Made by an individual who
- Is authorised by the employer &
- Has knowledge of the financial affairs
May still obtain certificate from “financial service provider”
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159/21/20
False Stat Decs
§ A person must not make a false statement in a statutory
declaration covered by subsection 789GCD(3) if the person
knows that the statement is false.
§ Note: This subsection is a civil remedy provision (see
Part 4-1).
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https://coronavirus.fairwork.gov.au/coronavirus-and-australian-workplace-laws/pay-and-leave-during-
coronavirus/jobkeeper-wage-subsidy-scheme/legacy-employers/information-for-eligible-financial-service-
providers
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169/21/20
https://coronavirus.fairwork.gov.au/coronavirus-and-australian-workplace-laws/pay-and-leave-during-coronavirus/jobkeeper-wage-subsidy-scheme/legacy-
employers/information-for-eligible-financial-service-providers
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ICB Templates
§ Includes the Employers Declaration to the Agent
§ Updated shortly to work with the FWO Template
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179/21/20
Issuing the Certificate
§ Do not FALSIFY any part of this calculation or certificate
§ Obtain full information from the employer and
§ Obtain the declaration from the employer about the
information and the calculation
§ Apply all standards of ICB & TPB Code of Conduct
- Reasonable Care, Competence, True and Correct
- (Rationale, Realistic, Reasonable, Professional)
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BAS Agents PI Insurance
§ The JK law permits BAS Agents to provide this certificate.
§ That does not make it a BAS Agent Service within the TASA.
§ The TPB does not have jurisdiction over the performance of
the BAS Agent under the Fair Work Act. The Fair Work
Commission does.
§ However; the TPB could challenge a BAS Agents
registration for failing to be a fit and proper person or he
honest and integrity provisions, if you did not act
appropriately.
§ Does you PII cover you for this work?
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189/21/20
JobKeeper 2.0
Payments
(ATO)
Explaining the Rules & ATO guidance
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Status – 18th Sept.
§ We have the Law that extends JK Payments until 28 march
2021
§ We have Royal Assent
§ We have the amending Rules from Treasury (nothing new)
§ We have the Legislative Instruments from the ATO
§ We have the ATO guidance on their website
§ We don’t have the ATO Online Services to notify the Tier 1
or 2 yet – not needed till October.
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199/21/20
ATO have published guidance
– What’s Different -
As of 17th Sept
§ “Actual” Decline in Current GST Turnover
- Same basis as BAS is prepared
- Same Alternative Tests
- Sale of Assets is included in “GST Turnover”
§ There are alternative tests for calculating the 80 Hours
§ Payments for FNs 14 & 15 can be late i.e. by 31 October
https://www.ato.gov.au/General/JobKeeper-Payment/In-detail/JobKeeper---timeline-of-content-updates/
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ATO Guidance
https://www.ato.gov.au/General/JobKeeper-Payment/In-
detail/JobKeeper---timeline-of-content-updates/
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209/21/20
ATO Guidance
https://www.ato.gov.au/General/JobKeeper-Payment/In-
detail/JobKeeper---timeline-of-content-updates/
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Decline in Turnover – JK2
§ Actual Current GST Turnover
§ JK2 – GST Turnover is on the Same basis as the BAS
- If no BAS then choose cash or accrual
§ Test Qtr ended 30 Sept 2020 to Qtr ended 30 Sept 2019
- Lodge the Sept BAS if outstanding
- ATO looking to prefill and test early
§ Retest Qtr ended 31 December 2020 to continue JK into
2021
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219/21/20
GST Turnover
https://www.icb.org.au/covid-19/jobkeeper
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Decline in Turnover – JK2 – Alternative Tests
§ Same Alternative Tests as JK1
https://www.ato.gov.au/General/JobKeeper-Payment/In-detail/Actual-decline-in-turnover-
test/?anchor=Basictest2#Basictest2
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229/21/20
Employee
Eligibility
• No need to re-enrol
• No need for new Declarations
• Employees can swap to another employer IF
their previous JK employment has Ceased.
• October topups to be paid by end of October
• New Employees – obtain a Declaration
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Notify Employees about what is happening
§ Employees continuing to be topped up now to $1200 – Tier 1
§ Employees to be topped up only to $750 – Tier 2
§ Employees no longer able to be topped up
Recommend get acknowledgement from employee
§ Notify If October topups are on hold
§ Fair Work provisions
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239/21/20
Which period am I testing
§ Employees – the 28 days in pay cycles that ends within
February or June
- Alternate periods
§ Eligible Business Participants - the 29 days of February or 30
days of June
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ATO: Hours:
80 Hours or more
four weeks of pay periods
Test Date:
Before 1 March or 1 July 1st March or 1st July
Stipulated in the Act
Week 4
Week 2 End of Pay
Pay Period
Week 1 Week 3
Pay pay
End of Pay Period
Weekly, Fortnightly or
4 Weeks Monthly that ends
in the 4 weeks prior
How Many Hours?
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249/21/20
ATO Alternate test periods
§ If normal 28 days is not representative of hours then
- Use most recent 28 days before that is representative
§ If not employed for all or part of normal 28 days then
- Use the first 28 day period that starts after normal period
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ATO: Hours – Alternative Tests
§ If no records? How much did they get paid? More or less
than $1500
§ If hours unknown (commission, piece rates): How much did
they get paid in the 4 weeks
§ Monthly not paid in the 4 weeks - prorata
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259/21/20
When JobKeeper 2.0 starts
§ Some Employers will no longer be eligible
- No need to “un-enroll”
- No need to “Finish” employees
- Stop lodging monthly declarations
§ Some Employers will become eligible
- Enrol ATO Online
- Enrol Employees – STP Start Codes &
- STP Tier Codes
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When JobKeeper 2.0 starts
§ Continuing Employers
- you will NOT need to re-enroll
- you will not need to restart existing employees
- You DO NOT need to obtain new Nomination Forms for
existing employees
- Add any new employees with a STP Start Code
- All tier 1 employees – notify the ATO (ICB Expect a STP
JKTier Code)
- All tier 2 employees – notify the ATO (ICB Expect a STP
JKTier Code)
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269/21/20
Indicative Draft Timing
End of FN 14 End of FN 15
End of JK 1 If eligible for JK 2 If eligible for JK 2
Maybe Pay topup to Maybe Pay topup to
Top up all employees employees employees
Allowed to wait until 31 Allowed to wait until 31
October October
27 Sept. 1st Oct. 11th Oct. by 14th Oct. 25th Oct. Pre 28th Oct.
JK 2 or Legacy Employer
Validate GST Turnover Sept Monthly Dec.
Calculate 30% decline or
30% Decline? Lodge Monthly Dec. 10% decline
Advise Employer and If ready – additional BAS to be lodged for Legacy
prepare advice for information for JK2 Certif to be issued for
employees as to JK Legacy
continuation
Transition period – we don’t know whether we pay?
Employees don’t know what they get?
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279/21/20
10% decline is NOT about payments
§ Please Note: The 10% decline is about the Fair Work Act
and the JobKeeper Directions
§ It has nothing to do with the ATO administered JK Payments
to employees and the subsidy
§ JK2 Payments requires 30% decline for most businesses
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Monthly reporting continues
§ Monthly Declaration is required to obtain the subsidy
§ Monthly report of GST Turnover
§ NOTE: Decline in Turnover is a Quarterly retest
§ Obtain Declarations from the Employer
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https://www.icb.org.au/covid-
19/jobkeeper/jobkeeper2
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Concerns
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Don’t pay in first week of October
Communicate with employees
§ A business may not be able to assess whether they are
eligible for JK 2 until after 30 September – 30% decline
§ If in doubt DO NOT pay top up after 27th September
- The employee will have to wait
- ATO has stated they will allow late payment
§ Employee may not receive payment
- JobSeeker
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Thank You !
ICB.org.au
admin@icb.org.au 1300 856 181
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