4 Things You Need to Know About Jobkeeper Version 2.0.

Ever since Covid struck the world, businesses and employees have faced a severe economic crisis. The employees are consistently losing their jobs, while the companies are unable to make the target sales, resulting in unexpected situations. So, to avoid these issues, the Australian government came up with the Jopkeeper payment that gave businesses subsidies and helped them provide payments to their workers, avoiding further job loss.   

 

If you are a business and need someone to keep a check on your payments and other important financial details, Accountant Strathfield is the best for you. Our team helps you grow and offer efficient bookkeeping services. Your job keeper payment is also secure with us. However, there are a few things about Jobkeeper version 2.0 that you should know. So, let's discuss them! 

What is JobKeeper Version 2.0? 

The Australian government introduced Jobkeeper version 1 on 30 March 2020, which was supposed to end on 27th September 2020. But the pandemic was still going on, and the discontinuation could result in more loss. So, the government decided to extend the program from 28 September 2020 until 28 March 2021 with a few changes. The Jobkeeper 2.0 will replace the $1500 subsidy with a new two-tiered system.  

Things You Should Know About Jobkeeper Version 2.0 

Every business must know a few things to check whether they are credible for Jobkeeper version 2.0 or not. Let's discuss them in detail: 

Eligibility Criteria 

Remember, not all businesses are eligible for this Jobkeeper version. So, ensure you have experienced the following things: 

 

• 50% decline in overall sales for businesses with a turnover of approximately more than 1 billion dollars. 

• 30% sales and revenue decline for businesses with almost 1 billion dollars or slightly less. 

• 15% decline for Australian non-profit organisations; however, non-profit schools and other institutes are not added. 

 

This data will be extracted from and compared to the stats of 2019. The businesses should confirm their eligibility and send their application to the ATO utilising the "decline in turnover test form" available at the ATO portal. The last date for this is 4 January 2021. 

Payment Rate Will Change 

For Jobkeepers, the payment rate has been reduced from 4 January 2021 into two parts. 

 

This tier 1 rate of $1000 per fortnight before taxes applies to the following people: 

 

• Employees who worked for an average of more than 20 hours for four weeks before March 2020 or July 2020. 

• Business participants worked for more than 20 hours per week and provided an explicit declaration of the effect. 

 

This tier 2 rate of $650 per fortnight before taxes applies to the following: 

 

• All other business participants and employees are eligible for this. 

 

According to this version, businesses are asked to pay employees the same or a little more than the payment mentioned in the Jobkeeper version 2.0. Additionally, businesses need to mention which payment rate they are following for their employees with reasons and to arrange all these things; there's no better service provider than Accountant Strathfield.  

Employees Eligibility Criteria 

In this Jobkeeper version 2.0, the employee's eligibility criteria are changed compared to version one. Here are the points that tell you whether or not you qualify: 

 

• Are you currently employed by any business? 

• Having part-time, long-term, or casual employment experience as of 1 July 2020 and hasn't been hired by any other employer 

• Are aged 18 and above; however, for 17 or under, the criteria are a bit different. They should be employed and shouldn't be pursuing any full-time degree 

• Should be a previous or current Australian nationality holder to keep the candidates under the income tax assessment act  

 

Self-employed people are only eligible for Jobkeeper version 2.0 if they fulfill all the turnover test requirements. 

On-Time Jobkeeper Payment 

After dealing with a reasonable rate, as a business, it's your responsibility to ensure that you pay all the payments to employees on time. The fixed time is to make payments at fortnight dates set by the ATO. The payment for two fortnights in January will be made on 31 January 2021.  

End of Jobkeeper Version 2.0 

Although the Jobkeeper was supposed to end on 28 September 2020 after the first six months, however, due to the shaking economic situation, the Australian government extended the scheme for another six months. Finally, on 28 March 2021, the scheme ended, making it quite difficult for businesses and employees to manage further.  

 

The end of Jobkeeper means there will be no $1000 subsidy for full-time and $6500 subsidy for part-time employees. According to sources, almost 100,000 to 150,000 employees risk losing their jobs with the end of this scheme. But it is expected that the economy will not face the same crisis as in 2020.  

 

Furthermore, to help people cope up with unemployment, the Australian government came up with Jobkeeper Unemployment and Youth Allowance payments. The country also promoted cheap tourism to stabilise the economy and offer more job opportunities. With that said, you can say that the Jobkeeper swept off with the Jobseeker. It doesn't matter what the case is; you will always find Accountant Strathfield quick and reliable. 

Conclusion  

We hope now you've understood everything about the Jobkeeper version 2.0 and how it helps Australian businesses in times of crisis. It also helped reduce the unemployment ratio by giving subsidies to companies so that they could pay their employees on time. 

Disclaimer: This is a generic Information & post; content about the services can be changed from time to time as per your requirements and contract. To get the latest and updated information, contact us today or visit our website.