JobKeeper extension 2

A business may be eligible for the JobKeeper extension 2 even if it wasn’t eligible for any of the previous JobKeeper periods.  To qualify under the basic test, an entity must have experienced a reduction in turnover in the 2020 December quarter (October, November, December) compared with the 2019 December quarter of at least:

• 15% for charities
• 30% for businesses with $1 billion or less turnover
• 50% for businesses with turnover of more than $1 billion

Turnover is calculated under the same basis as GST is reported, either cash or accrual.

If the basic test is not satisfied, a business may be able to qualify for the JobKeeper extension by meeting one of the alternative tests covered by the following seven categories:

• Category 1: entity is new to business and did not have a full turnover in the December 2019 quarter
• Categories 2 and 3: disposals, acquisitions and restructures result in the December 2019 quarter not being comparable.
• Category 4: entity had a substantial increase in turnover
• Category 5: entity affected by drought or other natural disaster making comparison with the December 2019 inappropriate
• Category 6: business has an irregular turnover
• Category 7: sole trader or small partnership (with no employees) experienced illness, injury or leave during the December 2019 quarter.

These categories are explained in further detail here. 

The deadline for enrolment in the JobKeeper extension 2 is 31 January 2021.

If you require assistance with determining eligibility and enrolment, please contact your usual Mazars advisor or alternatively contact one of our tax specialists on the phone numbers or form provided below:

Published: 20/01/2021

All rights reserved. This publication in whole or in part may not be reproduced, distributed or used in any manner whatsoever without the express prior and written consent of the Mazars, except for the use of brief quotations in the press, in social media or in another communication tool, as long as Mazars and the source of the publication are duly mentioned. In all cases, Mazars’ intellectual property rights are protected and the Mazars Group shall not be liable for any use of this publication by third parties, either with or without Mazars’ prior authorisation. Also please note that this publication is intended to provide a general summary and should not be relied upon as a substitute for personal advice. Content is accurate as at the date published.