Tailored Accounts facebook   +61 2 6169 5196

Don’t Miss the Last Business Lifesaver – JobKeeper 2.1 (January – March)

Author: Harry Hoang

2020 was a year that not many of us wanted to look back. I am so glad that it is over. I woke up on the first day of 2021 thinking that I was grateful to start the new year ahead! On behalf of the small business community and my small clientele, I would like to thank Australian Government for the timing stimulus support that has been a great lifesaver to many small businesses. We are grateful that we have survived such a difficult year. 2021 could be better or worse, however, we should all know what to expect as we have had enough time to adjust our business models to adapt with crisis such as lockdown, restrictions, new rules and working from home.

JobKeeper 2.1 – What You Need To Know?

I spent most of my time on JobKeeper management and research during the first few weeks of 2021, understanding that my clients would need cash to pay their staff, who might be still on holiday. Here are some useful tips and advice for all businesses out there to make sure you understand the requirements and changes of JobKeeper 2.1:

  • It is instrumental to get the turnover test done again to determine whether your business would be still qualified for Jan – March’s JobKeeper.
  • If your business failed the April – June turnover test and did not qualify for October – December’s JobKeeper, please be aware that you are still having a chance to be qualified.

One of the common mistakes my clients have encountered so far is that business owners often misunderstood the purpose of turnover tests.

For example, if a business owner thought his or her business was not qualified for JobKeeper 2.0, the business owner would not believe the business could be qualified for January – March’s turnover test. It was assumed that the business turnover in October - December was too good to be less than the standard 30% turnover decline threshold.

Keep in mind that there are more tests than a basic turnover test. I suggest that you should try alternative tests as you might be falling into a high growth or business with lumpy turnover categories. Here is a screenshot to summarise all the tests you'd need to know:

 

  • Please re-test your October – December’s turnover. If you used to be eligible for JobKeeper 1.0, passing the turnover test for October – December period means you can go back to JobKeeper again.
  • Be aware of the latest change – There are now 2 payment tiers which each requires some more complicated tests to identify which of your eligible employee belongs to which tier. Tier 1 eligible employees will now receive $1,000 per fortnight whilst Tier 2 employees will receive $650.

As accounting practitioners and BAS agents, we recommend businesses seeking advice from a professional source. At Tailored Accounts, we provide consultation and turnover tests to ensure the most possible positive outcome of each JobKeeper client.

Read more...
Subscribe to this RSS feed