Business
THE END OF JOBKEEPER – NOW WHAT? Bouncing back in 2021 with a little help from the government.
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here’s no doubt that 2020 was a difficult year for the wellness and beauty industry, with restrictions and lockdowns impacting the services many could offer. The temporary JobKeeper Payment is one of the ways the government has been helping many get through this difficult time. The good news is that this scheme has been extended twice, and now runs through to 28 March 2021, giving you more time to get back on your feet. Even if you weren’t eligible to claim JobKeeper payments before, you may be eligible now if you have experienced a decline in business turnover. You’ll need to show that your business has experienced a decline in turnover in the December 2020 quarter from a comparable period (which would generally be the same time last year). This is called the ‘actual decline in turnover test’. But, to keep it simple – if you were already enrolled for JobKeeper before 28 September 2020, you don’t need to re-enrol. You also don’t need to reassess employee eligibility or ask employees to agree to be nominated by you again.
Change of payment rates One thing that’s different about the second JobKeeper extension is the change to payment rates from 4 January 2021. There are two tiers of payment rates and the amount you can claim for each eligible employee will depend on which rate applies to them. You can claim either $1,000 (Tier 1) or $650 (Tier 2) depending on the hours each eligible employee works. You may have employees on either of these rates. Information on the second JobKeeper payment extension, including eligibility criteria and how to determine what tier rate to claim for your employees can be found on the ATO’s website. Although the JobKeeper payment ends on 28 March 2021, there’s a range of other support available to help you and your business, including the JobMaker Hiring Credit.
JobMaker Hiring Credit The JobMaker Hiring Credit is an incentive for businesses to employ additional young job seekers aged 16–35 years. Under the scheme you can receive payments of up to $200 a week for new positions you create between 7 October 2020 and 6 October 2021, provided you and your employees meet eligibility criteria. You can register for the JobMaker Hiring Credit using ATO online services or the Business Portal, or through your registered tax or BAS agent, at any time until the program closes. If you’re eligible, once 20 | SPA+CLINIC
Fast facts:
• JobKeeper payments will end on March 28, 2021 • You can enrol for the second JobKeeper extension even if you weren’t eligible for the first one • If you’re ineligible for JobKeeper, you may be eligible for the JobMaker Hiring Credit
you’ve registered you can claim JobMaker Hiring Credit for up to 12 months from the start date of any new eligible employees you take on until 6 October 2021. You can make claims every three months from 1 February 2021. While both programs are here to help, you should note that you can’t receive the JobMaker Hiring Credit and JobKeeper payments at the same time. However, if you’re not eligible for the second JobKeeper payment extension or, once the program has ended you decide to employ more staff, the JobMaker Hiring Credit may be available for you. For more information visit ato.gov.au/jobkeeperextension or ato.gov.au/jobmakerhiringcredit