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JobKeeper in 2021: ATO reveals what businesses need to know

Adrian Flores
Adrian Flores
18 December 2020 1 minute readShare
ATO reveals what businesses need to know

The Australian Taxation Office has addressed what businesses need to know and understand to stay on top of the immediate changes to the JobKeeper scheme that will apply when 2021 kicks off.

Speaking exclusively on the MyBusiness webcast, ATO deputy commissioner James O’Halloran reminded businesses of the changes in the JobKeeper payment from 4 January 2021.

From 4 January 2021, the JobKeeper tier 1 payment reduces from $1,200 to $1,000 per fortnight, per eligible employee or eligible business participant, while for tier 2, the JobKeeper rate will reduce from $750 to $650 per fortnight.

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As for new businesses coming in for JobKeeper, Mr O’Halloran said they’ll need to enrol and submit their decline in turnover eligibility form online by 31 January 2021.

“So if you’re a new entrant, you certainly would have to do that. But importantly for fortnight 20, which is from the 21 December to the 3 January, we’re allowing employers until Monday, the 4 January 2021, to meet the wage condition, that is to have paid their employees,” Mr O’Halloran said.

 

In terms of the monthly declaration that businesses need to do, Mr O’Halloran said the ATO has extended that period by two weeks, meaning businesses have until the 28 January to submit their monthly declaration.

He said it’s important to note that the monthly declaration triggers the payment.

“For fortnights 21 and 22, which is the period of 4 January and 18 January, in other words the January fortnights, we’re allowing employers until 31 January 2021 to pay their employees,” Mr O’Halloran said.

“We’ve deferred both the wage condition requirement of when employers need to have paid their employees before making the claim and also deferred the monthly declaration to the end of the month.

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“Its trying to give some allowance to that time of the year, but… the quicker people claim, the quicker we can in fact reimburse them or give it to them.

“So, weve tried to assist that way over that period, but of course, the earlier people do these things, in February the money will in fact be processed and made available back to people.”

JobKeeper in 2021: ATO reveals what businesses need to know
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Adrian Flores
Adrian Flores

Adrian Flores is the deputy editor of MyBusiness. Before that, he was the deputy editor for SMSF Adviser as well as features editor for ifa (Independent Financial Adviser), InvestorDaily, Risk Adviser, Fintech Business and Adviser Innovation.

You can email Adrian at [email protected].

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