Businesses and workers receiving the JobKeeper subsidy will see reduced payments from Monday, with employers now reminded of one additional step they need to take to remain eligible.
Around 3.5 million workers will be affected by the JobKeeper changes, with the system now splitting into two tiers of payments. However, the new payment system will also see some new workers receive the subsidy, the Australian Tax Office (ATO) said, provided they were employed by 1 July.
Also read: JobKeeper and JobSeeker: What has changed?
To be eligible for subsidies prior to 3 August 2020, employees need to have been employed by 1 March. But to be eligible for payments after 3 August, employees only need to have been on the books from 1 July.
What do businesses receiving JobKeeper need to do?
“There are some key dates to keep in mind, and simple steps employers can take now, so they are ready for the changes, but please remember that not everything needs to be done from next week,” said ATO deputy commissioner James O’Halloran.
“Although you do not need to re-enrol in JobKeeper, you do need to notify us of your eligible employees and what rate you are paying them as part of your normal payday reporting in October. This can easily be done through Single Touch Payroll.”
Additionally, employers will need to nominate any new employees if they are applying for a JobKeeper subsidy for those workers for the first time.
Dates bosses need to know about JobKeeper
28 September 2020: JobKeeper is split into two tiers of payments, based on hours employees worked. Those who worked more than 20 hours per week will receive the Tier 1 payment, while those who work fewer hours will receive the Tier 2 payment.
Tier 1 rate
Tier 2 rate
28 September 2020 – 3 January 2021
1 - 14 October: Businesses need to complete their October JobKeeper monthly business declaration to receive the subsidies for payments made in September.
1-31 October: Businesses need to prepare and submit the details of their business’ actual turnover decline to the ATo.
Up to 31 October: Businesses need to meet the wage conditions for all eligible employees for the JobKeeper fortnights starting 28 September and 12 October.
1 November onwards: Businesses need to complete their monthly business declaration and confirm the the payment tier they’re passing along to workers.
4 January 2021: Payments reduce again.
Tier 1 rate
Tier 2 rate
4 January 2021 – 28 March 2021
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