JobKeeper 2.0(JK2) – Subsidy 5 Minute Summary

by | Sep 29, 2020 | Covid-19

JK1 Finished on the 27th September

(JK) 1 finished on the 27th September so all payments for JK 1, Fortnight 13 need to be paid by 27th September and then make the Monthly Declaration by 14th October to receive the  September JK1 Subsidy of $1,500 per fortnight per employee.

JK2 – Starts on the 28th September

What doesn’t change for employers, according to the ATO:-

  • Employers don’t need to re-enrol for the JK2, if they already enrolled for JK1 for fortnights before 28th September
  • Employers don’t need to reassess employees eligibility or ask employees to agree to be nominated by them as their eligible employer if they are already claiming JK1.
  • Eligible Business Participants don’t need to meet any further requirements than for JK1.

Decline in Turnover

To be eligible for the JK 2 wage subsidy, an employer must have suffered a 30% decline in actual GST Turnover for the Quarter ended 30th September 2020 (as compared to the Quarter ended 30th September 2019).

They also had to be eligible for JK1 (whether they actually enrolled and received JK 1 payments or not, all the eligibility tests for JK1 apply). When determining the Decline in Turnover the same type of alternative tests will be available as were in place for JK 1.

 Businesses on monthly BAS add the 3 months together, Non-GST registered businesses or Annual Reported use the “GST Turnover” definition and calculate for Quarterly.

Inform employees what is happening

Some employers will already know that they are not eligible for JK 2 as their September Quarter will not have declined by 30% compared to last year, some will know that they are definitely eligible for JK 2, think about the closed businesses in Metro Melbourne.

However, some will not know until after 30th September, but they may have paydays on the 28th, 29th, 30thor early October.

 The ATO is allowing payments for Fortnight 14 & 15 to be paid as late as October 31st, which allows a business time to make sure they are eligible. 

HOWEVER, it is important to keep your employees informed: The rates change for everyone; down to $1200, down to $750 or to $nil – the employee must be informed.

New Rates, Tier 1 or Tier 2 – 80 hours per 28-day Test

Tier 1 $1200 per Fortnight

Tier 2 $750 per Fortnight

The employee eligibility provisions remain in place; including were they an employee as of 1st March or 1st July.

Then it is about whether they receive the Tier 1 payment of $1200 which is paid to those employees who work 80 hours or more in their normal pay cycles covering a 28-day period, or $750 for those who don’t.

The 80 hour test is “normally” conducted for a 28-day period ending with the most recent pay cycle before either 1st July or 1st March, 2020.

Test either to see if they qualify for the higher, if not then test the other. If those periods are not representative of a normal 28-day period, then you can test a preceding representative 28-day period.

If the employee had an unpaid absence or only started work during the February or June test periods, then test the first full 28-day period after the start period.

Retesting Decline – October and January

Employers will need to prepare monthly declarations, which for October and January will include restating that they meet the new Decline in Turnover Test.


The ATO will be relying on the figures reported in the September 2019 BAS, if applicable, so it must be lodged before you claim the October JK payment.

The September 2020 BAS may still not be lodged and that is ok.

Likewise, when retesting for October to December 2020 period, the December 2019 BAS will need to be lodged.

One (employee) in all in

We also note that if an Employer is claiming JK, it is for all eligible employees, you cannot pick and choose.

Fair Work has a different 10% test

You may have heard about a 10% Decline – that relates to the use of the JK Fair Work Provisions: a series of concessions for employers in working with employees as to the hours they are needed to work, the duties, the time and place.

JobKeeper (JK) enabling directions

Under the extended JK provisions, from 28 September 2020 legacy employers can:

  • issue JK enabling stand down directions (with some changes) – for example, a direction to work less hours
  • issue JK enabling directions in relation to employees’ duties and locations of work – for example, a direction to change work location
  • make agreements with employees to work on different days or at different times (with some changes) – for example, an agreement that an employee will work on different days.

To issue new directions or make new agreements that start on or after 28 September 2020, employers have to be entitled to JK payments or if not qualify as a ‘legacy employer’ for each relevant quarter.

This includes satisfying the 10% decline in turnover test or having a certificate or statutory declaration. See 10% Decline in Turnover Certificate


Extension of the JobKeeper Payment – ATO factsheet

JK Legacy Employers – 10% Decline in Turnover Template Certificate


If you need help understanding this new JK2 legislation or require assistance in assessing and calculating your eligibility, please contact us.

Please ensure the business trading figures for the September Quarter 2020 have been reconciled before contacting us to confirm eligibility.  

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