JobKeeper 2.0 New Rules

On 15 September 2020, the legislative instrument for the new JobKeeper 2.0 rules was passed, and further guidance was released to give effect to the following changes to the JobKeeper Scheme which were announced on 21 July 2020 and 7 August 2020, including:

introduction of two Extension Periods for the JobKeeper scheme, beyond the originally planned end date of 27 September 2020, to 28 March 2021;
a two-tier payment rate system after 28 September 2020;
eligibility rules for the two payment tiers, based on the "number of hours worked" by each eligible employee, during one of the two relevant reference periods; and
a requirement to re-test a business's eligibility for the two Extension Periods (ie. the September & December 2020 quarters) based on a new actual "decline in turnover test".

Each of these new changes can be summarised in the following table:

	Extension Period 1	Extension Period 2
Relevant dates?	28 September 2020 to 3 January 2021	4 January 2021 to 28 March 2021
JobKeeper Fortnights?	Fortnights #14 to #20	Fortnights #21 to #26

New rules/tests for the Business/Employer …
New "decline in turnover test"?	The Business will need to confirm it has experienced a decline in "actual GST turnover" (and not projected turnover) for the September 2020 quarter (compared to the September 2019 quarter) …	The Business will need to confirm it has experienced a decline in "actual GST turnover" (and not projected turnover) for the December 2020 quarter (compared to the December 2019 quarter) …
Business with group aggregated turnover more than $1 bn …	.. of at least 50%	.. of at least 50%
Business with group aggregated turnover less than $1 bn …	.. of at least 30%	.. of at least 30%
Charities and ACNC entities …	.. of at least 15%	.. of at least 15%
*Note:* As a part of the new actual "decline in turnover test", the ATO Commissioner has been granted discretion that will determine most (or all) supplies will be treated as being made at a time in the period to which they are attributable for GST reporting purposes – this new discretion has been explained in more detail below the Table.

New rules/tests for Employees/ Business Participants/ Religious Practitioners …
Two-tier payment rates?	Determines the minimum wage each eligible employee, business participant or religious practitioner is paid per fortnight …

High Rate …	$1,200 per Fortnight (when Hours Worked more than 80 hours during the test period)	$1,000 per Fortnight (when Hours Worked more than 80 hours during the test period)
Low Rate …	$750 per Fortnight (when Hours Worked less than 80 hours during the test period)	$650 per Fortnight (when Hours Worked less than 80 hours during the test period)

Number of " Hours Worked "?	This test determines the Payment Rate which will apply to each eligible employee, business participant or religious practitioner during each Extension Period. When the total hours worked during the test period is; more than 80 hours the High Rate applies , and if it is less than 80 hours the Low Rate applies . *Note:* the threshold of 80 hours for the test period* is equivalent to the previous terminology used (ie. 20 hours or more on average per week for a four weeks period).*
For Employees …	The total "hours worked" by each eligible employee (including work performed, paid leave and paid absence on public holidays) in either : the 28-day period ended before 1 March 2020 ; or the 28-day period ended before 1 July 2020 .
For Eligible Business Participants ….	The total "hours actively engaged" by the eligible business participant (including work performed, undertaking specific tasks in business development, planning, regulatory compliance or similar activities) in the month of February 2020 .
For Religious Practitioners …	The total "hours spent doing activities" by the religious practitioner (including in the pursuit of their vocation by performance of the rituals or practices (ie. participation in services, prayer, contemplation or meditation) and furtherance of the objectives of the religious organisation (ie. missionary or charitable work)) in the month of February 2020 .

Wage payment due date extended for JobKeeper Fortnights #14 and #15	As explained above for Extension Period 1, the Business needs to test actual "decline in turnover" for the September 2020 quarter (and this can only be done after 30 September has passed). Consequently, the ATO has extended the "wage payment due date for these two Fortnights until 31 October 2020 , in order to meet the wage condition for all employees included in the JobKeeper scheme. *Note:* JobKeeper Fortnight #14 is from 28 September – 11 October, and Fortnight #15 is from 12 October – 25 October 2020.

We must note that while these announcements give us more guidance in relation to the JobKeeper 2.0 rules (beyond 28 September 2020), further guidance from the ATO is still expected to be released shortly.

Most importantly, we must wait to see some detailed guidance as to how the ATO will allow for alternative reference periods to be used for :

the " decline in turnover test " (where there may be no comparative information available for the September or December 2019 quarters); and

the " number of hours worked test " for determining which of the two-tier payment rates should apply to each eligible employee (where the two reference periods can not give an accurate figure for the number of hours worked, caused by circumstances out of the employee or business's control).

Clarification on calculating "actual GST turnover" for the new actual "decline in turnover test"

As the new actual "decline in turnover test" is based on the actual decline in GST turnover, rather than projected GST turnover, the ATO has been given a more specific power to ensure that the legislation can deliver the intended policy outcomes.

The ATO Commissioner may now determine that certain supplies (ie. transactions) are to be treated as being wholly (or partly) made at a particular time for the purposes of the actual decline in GST turnover test.

Currently, GST turnover is determined based on when supplies are made, not the period to which any tax payable on the supplies is attributable. However, the GST return usually contained in Business Activity Statements ( BAS ) requires reporting of supplies on the basis of attribution.

While this distinction often does not matter over the medium term, in the context of quarterly testing of current GST turnover, it could increase compliance costs for some taxpayers.

We understand that the ATO will accept that most (or all) supplies will be treated as being made at a time during the period to which they are attributable for GST reporting purposes, and this will align the turnover information reported by entities to the ATO in GST returns with how current GST turnover is calculated for the purposes of the new actual "decline in turnover test".

Please do not hesitate to contact your Lowe Lippmann Relationship Partner if you wish to discuss any of these matters further.

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Tax Alert - Planning for Superannuation Contributions before 30 June 2026

May 18, 2026

Planning for Superannuation Contributions before 30 June 2026 As the end of the financial year is approaching, we take this opportunity to remind you of the various superannuation thresholds, opportunities, obligations and changes, including topics such as: Concessional contributions Non-concessional contributions Superannuation guarantee Impending changes to superannuation from 1 July 2026

FEDERAL BUDGET 2026-27

May 12, 2026

SUMMARY AND FULL COMMENTARY UPDATES

Practice Update – May 2026

May 4, 2026

Special Topic: Payday Super changes apply from 1 July 2026, act now to be prepared! The ATO has issued further guidance on Payday Super changes that apply from 1 July 2026. In particular, the ATO released a ‘Payday Super checklist for Employers’ ( click here ), which is a good summary of the tasks that should be completed before 1 July 2026, and now is the time to act. Understanding ‘qualifying earnings’ From 1 July 2026, employers will calculate super using ‘qualifying earnings’ ( QE ) instead of the current ‘ordinary time earnings’ ( OTE ). For many employers, the new concept of QE is broader than OTE, but it should not change the amount they need to pay for their employees. However, it may require updates to payroll software configuration and reporting. Employers should review and prepare to correctly map pay codes now to meet reporting obligations and ensure readiness when their updated payroll software is available. QE include the following payments: OTE (ie. payments for ordinary hours of work), including certain types of paid leave, allowances, bonuses and lump sum payments. There are no changes to what payments are considered OTE under Payday Super. For a full list of payments which are included within OTE – click here . All commissions paid to an employee. Salary sacrifice amounts that would qualify as QE had they not been sacrificed to superannuation. Earnings paid to workers who fall under the expanded definition of employee, including payments to independent contractors paid mainly for their labour. Some payments may fall into more than one category of QE, such as commissions, and those payments are covered only once to the extent of the overlap in categories. The total QE for a pay period is determined by aggregating all qualifying payments made to or for an employee on the relevant day, forming the basis for calculating superannuation guarantee ( SG ) contributions. Each payday, employers will need to report both year-to-date QE and superannuation liability for each employee through Single Touch Payroll ( STP ). Employers should confirm their updated payroll software has this reporting functionality built in. Understanding new timing requirements for super contributions From 1 July, employers are responsible for ensuring that super contributions reach super funds within 7 business days of the relevant payday , calculated on the QE amount. Super funds will have 3 business days (down from 20 days) to allocate or return contributions that cannot be allocated. There is currently no obligation for the Super fund to confirm that an employee contribution has been allocated successfully, however if 3 days have elapsed we can accept that the employee contribution has been processed correctly. A super payment only counts once it is received by the employee’s superannuation fund, not when it is submitted. Submitting on day seven may not allow enough time, and we note there is no extension for rejected payments - so employers must ensure there is enough time to correct any errors and for SG contributions to reach funds within the 7 business days. Understanding importance of testing payroll software before 1 July 2026 Prepare now, review your payroll system readiness, engage with payroll software providers and ensure the functionality for these new changes will be supported. It has been widely suggested that new payroll software functionality is tested and everything is running smoothly before 1 July. Note that super payments for pay cycles in July 2026 may be due before your final quarterly super payment is due on 28 July 2026 (ie. for the June 2026 quarter, being April to June). Contributions received on or before 28 July 2026 will reduce any super owing for the June 2026 quarter first . If there is any remainder, contributions will then be used under Payday Super. If you pay on time for the June 2026 quarter and Payday Super you do not risk incurring penalties. The ATO has provided an example of this issue ( click here ), and explains that if the employer pays the correct amount for the June 2026 quarterly payments and the first Payday Super payment (ie. for the first pay cycle in July, which could be weekly or fortnightly) is paid in full both contributions will be made on time. Understanding cash flow pressure Employers may have multiple super payments due during July 2026, including: super payments for each Payday (after 1 July 2026); plus the final quarterly super payment due 28 July, for June 2026 quarter (ie. April to June). Employers should review their expected pay cycles for July 2026 to understand the impacts of paying super each payday after 1 July 2026. Employers may consider setting aside additional funds to make sure they can meet their obligations. If cashflow permits, employers can pay the June 2026 quarter super on or before the first payday in July (ie. the first pay cycle in July, which could be weekly or fortnightly). If an employer can do this, your business will have: a more seamless changeover to the Payday Super system; and time to correct any rejected payments before the 28 July deadline. We recommend that all employers take actions as soon as possible to be best prepared for the Payday Super changes coming in from 1 July 2026. If you require assistance, please contact your Lowe Lippmann representative.