JobKeeper 2.0 is about to begin: here’s what you need to know

Like most sequels, JobKeeper 2.0 won’t be as big a blockbuster as the original. But that’s not to say it won’t help many SMEs navigate the difficult times ahead. Today we’ll cover what you need to know about making the transition for your business.

It’s hard to believe that JobKeeper 2.0 is due to begin next week.

But it’s actually been half a year (or 13 fortnightly payments) since the scheme was first launched, over which time around 42% of small businesses have accessed it, according to a MYOB survey.

Today we’ll look at whether your business might be eligible for JobKeeper 2.0, and if not, some other potential options that might be worth considering instead.

28 September 2020, JobKeeper extension 1 starts

The first extension will cover seven JobKeeper fortnights between 28 September 2020 and 3 January 2021.

The rates of the JobKeeper payment in this extension period are:

Tier 1: $1,200 per fortnight (for eligible employees or business partners who worked 80+ hours within a four week designated period)

Tier 2: $750 per fortnight (all other eligible employees and eligible business participants).

To claim JobKeeper payments for this period, you will need to show that your GST turnover has declined in the September 2020 quarter relative to a comparable period (generally the corresponding quarter in 2019).

But here’s the good news just in: if the quarter ending 30 September 2019 is not an appropriate comparison period, you may be able to use the alternative tests, the ATO has just confirmed.

These alternative tests are broadly in line with the original seven alternative test circumstances, and cover businesses that started after the comparison period, had a substantial increase in turnover, had an irregular turnover, or were affected by drought or a natural disaster.

The key difference this time around, however, is that the tests must be applied on the basis that the turnover test period is a quarter (rather than the choice between a month or quarter, which you had for the first version of JobKeeper).

What if my business is no longer eligible for JobKeeper?

As business owners deal with the stress and uncertainty of their businesses post JobKeeper,  many will be looking for support with finance solutions that improve cash flow, provide access to working capital, fund business recovery or assist with expansion opportunities.

Improve Cashflow

• Refinance & consolidate debts to minimise monthly expenditure (business or personal debts)
  Refinance shorter Commercial Term Loans into our 30 year set & forgot facilities
  Invoicing financing to bring forward payment of invoices

Working Capital

• Cashout available for any worthwhile and legitimate purpose, including capital injection

To explore your options and see if we can help you,    just call us …

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.