Treasury and Australian Taxation office have recently released more information regarding the JobKeeper extension scheme. Therefore following on from our email on 12 August 2020 please refer below where we have summarized relevant information to JobKeeper extension.

JobKeeper extension is available to businesses that were enrolled (or eligible to be enrolled) in the original JobKeeper scheme. This means that if your business did not enrol for jobKeeper, perhaps because you didn’t realize you passed the decline in turnover test until it was too late to enrol, then you could still qualify for JobKeeper extension 1 and 2. However, if you did not satisfy the decline in turnover test for the original JobKeeper period between March 2020 to September 2020, then you will NOT be eligible for JobKeeper extension.

JobKeeper extension periods:

Extension 1: 28 September 2020 to 3 January 2021
Extension 2: 4 January 2021 to 28 March 2021

If you were enrolled or eligible to be enrolled for the original JobKeeper then an additional GST decline in turnover test must also be satisfied if you wish to claim under JobKeeper extension 1 and/or 2.

Additional GST declined in turnover test:

Extension 1: Compare actual GST turnover for September 2020 quarter to actual GST turnover for the September 2019 quarter.
Extension 2: Compare actual GST turnover for December 2020 quarter to actual GST turnover for the December 2019 quarter.

The ATO have yet to announce any ‘alternative GST decline in turnover tests’ but once they are ready to release this information it will be updated to the below website. However, they have advised the test must be applied on the basis that the turnover test period is a quarter and will not be a month.

How is GST turnover determined for JobKeeper extension purposes:

  • If you are registered for GST, you will determine your GST turnover based on your GST registration for BAS reporting purposes (please refer to your BAS to confirm if this is cash or accrual(non-cash))
  • If you are not registered for GST, you can choose if your GST turnover is either cash or accrual (non-cash) basis.


Rates of payment will be:

Extension 1: Tier 1 $1,200 Tier 2 $750
Extension 2: Tier 1 $1,000 Tier 2 $650

The two tiered payment system is based on if the employee and/or eligible business participant worked or was actively engaged in more or less than 80 hours during the 28 day reference period (ie effectively 20 hours per week).
Please refer to this link if you would like more information about determining when the test is applied and how to determine the correct tiered payment.


What doesn’t change

  • You don’t need to re-enrol for the JobKeeper extension if you are already enrolled for JobKeeper.
  • You don’t need to reassess employee eligibility or ask employees to agree to be nominated by you as their eligible employer if you are already claiming JobKeeper for them.
  • Employers will continue to be required to make payments to employees equal to the amount of the JobKeeper payment within the relevant fortnight (** see exception per below)
  • You don’t need to meet any further requirements if you are claiming for an eligible business participant.
  • You will still be required to make your business monthly declaration between the 1st and 14th of each month to claim JobKeeper payments for the previous month.
  • The Jobkeeper Payment will continue to be made by the ATO to employers in arrears.
    **Exemption: – Employers will have until 31 October 2020 to meet the wage condition at the reduced rate for all employees included in the JobKeeper scheme for the fortnights commencing 28 September 2020 and 12 October 2020 ONLY.


Important matters to note:

  • The ATO have advised that if you are registered for GST and have outstanding BAS(s) you should lodge your BAS for the September 2019 and December 2019 quarters as soon as possible as these un-lodged BAS(s) may hold up your application for JobKeeper payments under the JobKeeper extension.
  • Businesses (except for sole traders) will need to notify the ATO in their October 2020 and January 2021 monthly declarations respectively of the rate (either tier 1 or 2) they are claiming for each eligible employee and/or eligible business participant.
  • Within 7 days of notifying the ATO which rate applies, businesses must also notify each individual in writing of their rate.


The ATO is constantly updating their website with more information as it becomes available. Therfore, if you would like any further information then please refer to the ATO website below.

If you have any further questions or if there is anything else that I can assist you with please do not hesitate to contact us.