JobKeeper 2.0 extension 2

What you need to know:
The second and last extension of the JobKeeper 2.0 scheme will begin from next year and will be active for all ATO fortnights ending during 4 January to 28 March 2021. Eligibility will differ from the previous JobKeeper.

To be eligible for this extension, an actual decline in turnover test (a 30% decline for most businesses or a 15% decline for most not for profits) must be satisfied as follows:

  • your actual GST turnover has declined in the December 2020 quarter compared to the December 2019 quarter, and
  • you must qualify for the original decline in turnover tests. This would already be done if you are currently enrolled for JobKeeper or if you qualify for the decline in turnover test for the quarter ended 31 December 2020.

To determine whether you have met the decline in turnover for the December 2020 quarter, you must use the same calculation method you use for GST purposes (i.e. cash or accruals). This generally means you compare the total sales at label G1 (Adjusted to be net of GST payable at label 1A) on your BAS to the corresponding prior period being December 2019 quarter. Except in limited circumstances, you cannot choose an alternative calculation method (cash or accruals) to that used on your BAS.

What’s changed:

Extension to due dates to meet wage condition
Due to the Christmas break, the ATO are providing businesses extended period of time up to 31 January 2021 to meet the wage conditions for the relevant January ATO JobKeeper fortnights that are part of the new scheme being:

  • 4 – 17 January 2021
  • 18 – 31 January 2021

Please note, the first fortnight ending in January 2021 (21 December 2020 – 3 January 2021) is part of the previous JobKeeper scheme.

  • This will be included in your December 2020 JobKeeper declaration.
  • The previous Tier 1 and 2 rates apply to this fortnight, being $1,200 and $750 per fortnight.
  • The due date to meet the wage condition for this fortnight is 4 January 2021.


Payment rates

The Tier payment rates have been reduced compared to the initial extension of the JobKeeper 2.0 scheme but still depends on the number of hours worked by an eligible employee or an eligible business participant actively engaged in the business and is split into two rates, Tier 1 and Tier 2.

The payment rates apply for all ATO fortnights ending between 4 January and 28 March 2021 and are as follows:

JobKeeper 2.0 Extension
Tier 1 rate per fortnight $1,000
Tier 2 rate per fortnight $650

What to do next

  • Determine if your business has met the decline in turnover requirement to be eligible for Extension 2
  • If you are eligible, enrol for JobKeeper. Note that businesses already enrolled do not need to re-enrol.
  • Work out eligible Tier 1 and Tier 2 employees and/or eligible business participants. Note, the tiers will remain the same if you have participated in the previous JobKeeper 2.0 extension but at a lower rate.
  • If enrolling for JobKeeper for the first time as a new business, notify the ATO and eligible employees the payment rate applicable to them. Notification to the ATO will form part of the monthly declaration lodged in February 2021.
  • Ensure that the “wage condition” is met by paying eligible employees at least the applicable rate per fortnight. Note that there is a transitional arrangement for the fortnights starting 4 and 18 January 2021 that allows the wage condition to be met so long as payments are made by 31 January 2021. This provides businesses with time to determine their eligibility before making payments to employees.
  • Lodge your monthly business JobKeeper declaration by the 14th day of the month following the month you will be claiming the subsidy.

For further information, please refer to ATO’s guidance on the key dates for the JobKeeper 2.0 Extension 2 and list of upcoming ATO JobKeeper fortnights.

If you have any questions, please feel free to contact us.