[vc_row][vc_column][vc_column_text]Treasury released yesterday new Rules and an Explanatory Statement (refer links below) providing additional guidance for businesses with respect to the extension of the JobKeeper scheme until 28 March 2021.[/vc_column_text][vc_column_text]The new Rules do not affect any entitlements payable under the original JobKeeper scheme up to 28 September 2020.[/vc_column_text][vc_column_text el_class=”with-table-text”]

• Eligibility for JobKeeper fortnights beginning on or after 28 September 2020 is subject to an additional eligibility test for decline in turnover.
• Entities must demonstrate that their actual GST turnover has declined by the required percentage (generally 30%) in the previous quarter relative to the entity’s comparable quarter for that period. For example:
  • For JobKeeper fortnights beginning on or after 28 September 2020 and ending on or before 3 January 2021, entities must demonstrate that their actual GST turnover for the quarter ending 30 September 2020 has declined by the required percentage; and
  • For JobKeeper fortnights beginning on or after 4 January 2021 and ending on or before 28 March 2021, entities must demonstrate that their actual GST turnover for the quarter ending 31 December 2020 has declined by the required percentage.
• It is expected the Commissioner will determine that ‘supplies’ for the purpose of the actual turnover test will be treated as being made at a time in the period to which they are attributable for GST reporting purposes to help reduce compliance costs.
  In addition, there will be a new tapered JobKeeper payment rate dependant on the hours of:
  • work and paid leave for employees; and
  • ‘business engagement’ by business participants (i.e. the hours that the business participant was actively operating the business or undertaking specific tasks in business development and planning, regulatory compliance or similar activities in an applicable reference period.)
• In addition, there will be a new tapered JobKeeper payment rate dependant on the hours of:
• For employees, there are two standard reference periods that are comprised of the 28-day period ending before:
  • 1 March 2020 – being the original reference date; or
  • 1 July 2020 – the additional reference date for newly eligible employees for JobKeeper fortnights beginning on or after 3 August 2020.
• The following table from the Explanatory Statement is a helpful summary of how the new tapered payment rates will apply:
  

  	JobKeeper fortnights beginning on or after 28	JobKeeper fortnights beginning on or after 4 Janauary 2021
  Higher payment rate: 80 hours or more in reference period/	$1,200 per fortnight	$1,000 per fortnight
  Lower payment rate: less than 80 hours in reference period	$750 per forthnight	$650 per forthnight

• It is expected that the Commissioner will specify alternative reference periods for employees that:
  • worked less hours in the reference period despite generally working on average 80 hours or more over earlier periods such that the hours worked in the reference period were not typical of their established work pattern;
  • have taken some form of unpaid leave or unpaid absence during part or all of the reference period making it not representative of their usual work hours in earlier periods (for example, they were receiving parental leave pay, dad or partner pay or workers compensation);
  • were only employed for a part of the reference period (for example, because they commenced employment during the reference period); or
  • were not employed at any time during the reference period (for example, an employee who commenced employment after the reference period but is still an eligible employee because they were treated as having been employed on 1 March 2020 or 1 July 2020).
• It is expected that in working out whether a particular employee is eligible for the higher rate, employers will generally be able to rely on records that are already maintained in respect of that employee (for example, about their employment conditions, or pay and leave arrangements).
• The Commissioner will have power to determine an alternative reference period for the hours worked for certain employees whose remuneration is not tied to an hourly rate or contracted number of hours (i.e. employees who undertake duties principally on a commission, stipend, piece rate or similar basis over the reference period, and their remuneration is not necessarily proportional to their actual hours of work in a particular period).

[/vc_column_text][vc_column_text]We expect the Commissioner to release further guidance shortly, including via legislative instrument, and will advise as soon as this is available.

However, in the meantime should you have any questions with respect to how these new Rules impact your business please contact the team at Trove.[/vc_column_text][mk_padding_divider][vc_row_inner][vc_column_inner][vc_column_text]Link to the Rules:[/vc_column_text][mk_button dimension=”flat” size=”medium” url=”https://www.legislation.gov.au/Details/F2020L01165/Download” target=”_blank” margin_top=”10″ margin_bottom=”40″ btn_hover_bg=”#c4b097″]Click here[/mk_button][mk_padding_divider size=”5″][vc_column_text]Link to the Explanatory Statement:[/vc_column_text][mk_button dimension=”flat” size=”medium” url=”https://www.legislation.gov.au/Details/F2020L01165/Explanatory%20Statement/Text” target=”_blank” margin_top=”10″ margin_bottom=”40″ btn_hover_bg=”#c4b097″]Click here[/mk_button][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row]