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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Practice Update – July 2025

July 4, 2025

Changes to car thresholds from 1 July The car limit for the 2026 income year is $69,674. This is the highest value that a taxpayer can use to calculate depreciation on a car where they use the car for work or business purposes and they first use or lease the car in the 2026 income year. If a taxpayer is buying a car and the price is more than the car limit, the highest input tax ( GST ) credit they can claim (except in certain circumstances) is one-eleventh of the car limit. For the 2026 income year, the highest input tax credit they can claim is $6,334 (i.e. one-eleventh of $69,674). The luxury car tax ( LCT ) threshold for the 2026 income year is $91,387 for fuel-efficient vehicles, and $80,567 for all other luxury vehicles. Input tax credits need to be claimed within the four-year time limit. A taxpayer cannot claim an input tax credit for luxury car tax when they buy a luxury car, even if they use it for business purposes.

Audit Lowe Down – Large proprietary limited – are you one? Tips and traps for your assessment

July 1, 2025

Large proprietary limited – are you one? Tips and traps for your assessment. In Australia, being classified as a large proprietary limited company means that you have to prepare, and lodge audited financial statements with ASIC under the Corporations Act 2001 (the Act), however many companies are not necessarily applying the thresholds appropriately. A proprietary company is large if it meets at least 2 of the following thresholds: Consolidated revenue ≥ $50 million Consolidated gross assets ≥ $25 million 100 or more employees. These thresholds seem simple, however some points to note: The calculations must be performed applying ALL accounting standards so even if you are preparing special purpose financial statements, then you will need to assess these thresholds as if you were applying all standards, including: AASB 16 Leases – this standard would add a right of use asset to your balance sheet potentially significantly increasing your gross assets. AASB 10 Consolidated Financial Statements – if you have controlled entities then the inclusion of their income statement and balance sheet may significantly increase each of the thresholds. AASB 128 Investments in Associates and Joint Ventures / AASB 11 Joint Arrangements – if you have entities over which you have significant influence or joint control then applying equity accounting or including your share of assets and revenue would affect the thresholds. In determining the number of employees, the Act is clear that it is all full-time and part-time employees (on a pro-rata basis), however casual employees need to be considered. For example, are they genuinely casual with varying hours / shifts each week or are they in substance a permanent member of your team but just employed on a casual basis. The thresholds need to be met at the end of the financial year and therefore entities should track their performance during the year so they are aware if they will meet the definition of a large proprietary company at year end.

Audit Lowe Down – Incorrect presentation of your liabilities could significantly affect your balance sheet

June 17, 2025

In a previous blog, we discussed the changes to the accounting standards relating to classification of current / non-current liabilities on the balance sheet. We have been receiving a number of questions on this topic and have provided some practical scenarios below as well as some actions for you as we approach 30 June reporting dates.