JobKeeper Payment 2.0... the final phase!

To continue receiving JobKeeper payments between 4 January 2021 and 28 March 2021, employers will need to re-assess their eligibility to continue into Extension Period 2. You will need to demonstrate a significant decline in actual GST turnover using the " Basic Test " comparing the December 2020 quarter to the December 2019 quarter.

If you do not satisfy the decline in turnover test using the Basic Test, you can consider the various Alternative Tests which we have explained in detail in previous Tax Alerts:

Alternative Test categories 1 to 7 – click here
Alternative Test category 8 – click here

Extension Period 2

The full details of Extension Period 2 have been summarised in the following table:

Extension Period 2
Relevant dates?	4 January 2021 to 28 March 2021

JobKeeper Fortnights
JobKeeper Fortnights?	Wage Payment Date? (ie. date employees must be paid on or before)
FN #21 - 4 January 2021 – 17 January 2021	31 January 2021 **
FN #22 - 18 January 2021 – 31 January 2021	31 January 2021
FN #23 - 1 February 2021 – 14 February 2021	14 February 2021
FN #24 - 15 February 2021 – 28 February 2021	28 February 2021
FN #25 - 1 March 2021 – 14 March 2021	14 March 2021
FN #26 - 15 March 2021 – 28 March 2021	28 March 2021
Note:** JobKeeper Fortnight #21 has been given an extended Wage Payment Date, to provide additional time for a business to perform their "decline in turnover test" and ""80 hour test" analysis – both are explained below.

"Decline in turnover tests" for the Business/Employer …

Basic Test period for " decline in turnover test "?	The Business will need to confirm it has experienced a decline in "actual GST turnover" (and not projected turnover) for the December 2020 quarter (compared to the December 2019 quarter) …
Business with group aggregated turnover more than $1 bn …	.. of at least 50%
Business with group aggregated turnover less than $1 bn …	.. of at least 30%
Charities and ACNC entities …	.. of at least 15%

If you do not satisfy the decline in turnover test using the Basic Test, you can consider the various Alternative Tests which we have explained in detail in previous Tax Alerts: • Alternative Test categories 1 to 7 – click here • Alternative Test category 8 – click here

New rules/tests for Employees/ Business Participants/ Religious Practitioners …
Two-tier payment rates?	Determines the minimum wage each eligible employee, business participant or religious practitioner is paid per fortnight …
Tier 1 - High Rate …	$1,000 per Fortnight (when Hours Worked more than 80 hours* during the test period)*
Tier 2 - Low Rate …	$650 per Fortnight (when Hours Worked less than 80 hours* during the test period)*

Number of " Hours Worked "?	This test determines the Payment Rate which will apply to each eligible employee, business participant or religious practitioner during each Extension Period. When the total hours worked during the test period is; more than 80 hours the High Rate applies , and if it is less than 80 hours the Low Rate applies . *Note:* the threshold of 80 hours for the test period* is equivalent to the previous terminology used (ie. 20 hours or more on average per week for a four weeks period).*

For Employees …	The total "hours worked" by each eligible employee (including work performed, paid leave and paid absence on public holidays) in either : the 28-day period ended before 1 March 2020 ; or the 28-day period ended before 1 July 2020 .
For Eligible Business Participants ….	The total "hours actively engaged" by the eligible business participant (including work performed, undertaking specific tasks in business development, planning, regulatory compliance or similar activities) in the month of February 2020 .
For Religious Practitioners …	The total "hours spent doing activities" by the religious practitioner (including in the pursuit of their vocation by performance of the rituals or practices (ie. participation in services, prayer, contemplation or meditation) and furtherance of the objectives of the religious organisation (ie. missionary or charitable work)) in the month of February 2020 .
*Note:* In some circumstances, an alternative reference period can be applied for the "80 hour test" if the standard reference period is not suitable.

Wage payment due date extended for JobKeeper Fortnight #21 (4 January 2021 – 17 January 2021)	As explained above for Extension Period 2, the Business needs to test actual "decline in turnover" for the December 2020 quarter (and this can only be done after 30 December 2020 has passed). Consequently, the ATO has extended the "wage payment due date for Fortnight 21 until 31 January 2021 , in order to meet the wage condition for all employees included in the JobKeeper scheme.

New Participants (who have not enrolled yet)

If you have not enrolled for the JobKeeper Payment scheme until now, you will need to complete the following actions by the end of the month that you wish to claim for:

Enrol for the JobKeeper Payment (be aware that it may take the ATO up to 3 days to process before you can submit your decline in turnover form and identify your eligible employees).
Submit your decline in turnover form.
Identify your eligible employees or business participant and tell us whether the tier 1 (high rate) or tier 2 (low rate) payment rate applies to them – the payment rates are detailed in the table above.

Please do not hesitate to contact your Lowe Lippmann Relationship Partner if you wish to discuss any of these matters further.

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Audit Lowe Down – Costs incurred in acquiring / forming a business

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Practice Update – September 2025

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