The COVID- 19 situation has greatly impacted most, if not all of the working community and disrupted regular income statements. And as per May 2020, more than 5 million Australians have directly benefitted from the JobKeeper and JobSeeker scheme.
From 2021, it is estimated that 2.24 million people will still be on the JobKeeper scheme, and then from March 2021 when the scheme ends, the number will dip to 1.75 million people.
However, there are a few updates to the JobKeeper scheme that you should be aware of from January 2021 [Stage 2]. Wondering what these changes are? We are here to help. These updates, which are summarized below, will give you a quick overview.
UPDATED JOBKEEPER SCHEME 2021
Some updates are that:
- The payment is still every 2 weeks, with a supplement of $150 per fortnight until 31 March 2021 on top of your every payment
- Your business may not be eligible even if it wasn’t before
- If your business is already receiving money for employees, recheck the eligibility of the business and complete a decline- in- turnover test
- You then have until 31st January to register for the new JobKeeper payment if you have not previously been registered
- Businesses and not-for-profits will need to demonstrate that their actual GST turnover has fallen in the December quarter 2020 (October, November, December) relative to a comparable period, which is generally the same quarter in 2019.
- Then, keep track of the new payment amount
- If the employee works 80+ hours, the payment will be $1000 before tax [Tier 1]
- If the employee works less than 80 hours, the payment is $650 before tax [Tier 2]
Make sure that:
- You inform your employees in written form about the tier they will be paid from
- You are aware that the payments will then be reimbursed to the employer from Jan- March inclusive; Keep receipts or a copy of an invoice of the payment so you can be reimbursed hassle-free!
Just to make sure that you know what’s staying the same!
- Businesses do not have to re-enrol for the JobKeeper extension if previously enrolled before the 28th September
- Similarly, employee eligibility does not need to be reassessed if the business has claimed for them before 28th September
- No further requirements must be met if businesses are claiming for an eligible business participant, other than those applied from the start of JobKeeper relating to:
- Holding an ABN
- Declaring assessable income and supplies
However, ensure that you check your eligibility before applying for the JobKeeper scheme.
RECENT JOBMAKER HIRING CREDIT SCHEME
The Government’s new Hiring Credit for JobMaker (estimated cost of $4 billion from 2020‑21 to 2022‑23) will encourage businesses to hire additional employees (who must be deemed eligible by the ATO) aged between 16 and 35. Eligible employers will be receiving payments of:
- Up to $200 a week for those who are 16- 29 years old
- Up to $100 a week for those who are 30- 35 years old
It is a new policy put in place for a new generation of economic recovery and success, to bring more Australians back to work. As we reset for growth, the JobMaker policy is guided by the principals that liberals and nationals have always believed in, to secure the future of Australia and to put people first within the economy. It reflects the Government’s commitment to ensuring we emerge from the pandemic with a stronger, more resilient and more competitive job- making and income-generating economy for future generations. It is believed by the treasury that the JobMaker scheme will support 450,000 jobs via its hiring credit.
The credit can be claimed for employees hired between the 7th October 2020- 6th October 2021
Wondering how to claim JobMaker Hiring Credit?
Firstly, check to see if both your business and your employee are eligible. Your total employee count must increase after 30 September 2020 and your payroll must also increase for the reporting period, as compared to the three months to 30 September 2020.
Then, you need to register your business and the employee using the
- business portal, or your registered tax or BAS (Business Activity Statement) agent can do it for you. This claim can be made from the start date to any time the program closes
- Finally, make a claim every 3 months for up to 12 months from the 1st of February 2021 until the closing date of the scheme
- Charitable organisations can also receive payments for new positions created between 7th October 2020- 6th October 2021
Curious as to what other bonuses there may be?
Furthermore, the Government is investing an additional $1.2 billion through the Boosting Apprenticeships Wage Subsidy to support and encourage up to 100,000 new trainees and apprentices.
The additional establishment of a $1 billion JobTrainer fund will support up to 240,700 additional free or low- fee training places for capable Australians to learn new skills by retraining or upskilling them into sectors with new job opportunities.
Note that employers cannot receive the JobMaker Hiring Credit as well as the JobKeeper payments at the same time.
Focus Bookkeeping Can Help!
The JobKeeper and JobMaker scheme have been put in place to help over 1 million Australians feel financially secure and to support businesses.
If you need assistance with the enrolment for the JobKeeper and JobMaker payment and what you need to do with your record keeping, just contact Fabiana for an obligation-free chat.
Read more about Fabiana and Focus Bookkeeping.