
With JobKeeper 2.0 now officially legislated, it is time to have a look at the finalised rules. Most basic rules are quite similar to the original JobKeeper Scheme, and changes are very much in line with the guidance previously provided.
A. Eligible Employers
This has not changed from the original JobKeeper Scheme much. The employers are required to run a business as of 1 March 2020 and employ at least one eligible employee for the fortnight that JobKeeper Payment is claimed.
The only change is that the employers are now required to satisfy the actual decline in turnover test. The test requires the employers to use the actual not projected GST turnover when calculating the percentage. Details of the test are listed below.
Employers must still satisfy the wage condition with the exception that for the fortnights ending 11 and 25 October 2020, the employers have got until 31 October 2020 to satisfy the test.
B. Actual Decline in Turnover Test
For the period from 28/09/2020 to 03/01/2021, the business must demonstrate the following decline in actual GST turnover in the September 2020 quarter comparing to the actual GST turnover in the September 2019 quarter:
ACNC registered charities: 15% or more decline in actual GST turnover
Large businesses with aggregated turnover over $1 billion: 50% or more decline in actual GST turnover
All other businesses: 30% or more decline in actual GST turnover
For the period from 04/01/2021 to 28/03/2021, the business must demonstrate the following decline in actual GST turnover in the December 2020 quarter comparing to the actual GST turnover in the December 2019 quarter:
ACNC registered charities: 15% or more decline in actual GST turnover
Large businesses with aggregated turnover over $1 billion: 50% or more decline in actual GST turnover
All other businesses: 30% or more decline in actual GST turnover
C. Eligible Employees
Starting from 3 August, the reference point of the requirements changed from 1 March to 1 July 2020. As a result, an eligible employee is one who was, as of 1 July 2020:
Full time, part time or long term casual (employed on a regular basis for 12 months before 1 July 2020) employee of the business
18 years or older (or 16 or 17 if independent or not a full time student)
An Australian citizen or permanent resident, or a resident for income tax purpose and a holder of subclass 444 visa
Is not in receipt of any of these payments:
- government parental leave or dad and partner pay
- a payment in accordance with Australian worker compensation law for an individual’s total incapacity for work
Has not agreed with any other employer to be nominated as an eligible employee for the JobKeeper payment
Has completed the JobKeeper employee nomination notice
D. Eligible Business Participants
For an eligible business that does not hire employees, the owner might be able to claim JobKeeper Payment as an eligible business participant.
Unlike employees, the reference point for business participants remains unchanged, which means the business participant must be actively engaged in the operation of the business as of 1 March 2020.
E. JobKeeper Payment Rates
JobKeeper 2.0 introduces a two tier payment system as detailed in the table below:

Employers are now required to notify their employees of which payment rate they are entitled to for each fortnight. Business participants are also required to make a declaration of number of hours worked in February 2020 and the payment rate they nominate to apply.
Business participants must prove that they had been actively engaged in the operation of the business and substantiate the working hours with documentations such as business diaries, appointment books, log books, hours billed, invoices issued, time sheets or attendance records, etc.
F. Alternative Decline in Turnover Tests
The legislations have now set out the alternative decline in turnover tests that can be used from 28 September 2020 onwards in the following situations:
The business commenced after the first day of the relevant comparison period (e.g. 1 July 2019) and before 1 March 2020
There was an acquisition or disposal of part of the business between the comparison period and the applicable turnover period (e.g. between 1 July 2019 and 1 July 2020), and the acquisition or disposal has changed the business’s GST turnover
There was a business restructure between the comparison period and the applicable turnover period and the restructure has changed the business’s GST turnover
The business had substantial increase in GST turnover
The business was affected by drought or other natural disaster
The business has an irregular turnover
Sole trader or partners of small partnerships did not work at all or partially during the comparison period due to sickness, injury or leave and that absence affected the business’s GST turnover
For more information on how the alternative tests are applied, please contact us.
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