(Extension 2)

Effective midnight 3 January 2021 JobKeeper 2.1 will officially come to an end and JobKeeper 2.2 (Extension 2) will come into effect from 4 January 2021 and will end on 28 March 2021.


1. Determine whether there has been an “actual decline” in GST turnover in the December 2020 quarter in comparison to the quarter ending 30 December 2019 (projections are no longer allowed).  To do this, you must complete and reconcile your accounting records up to 31 December 2020.  If there were events/circumstances outside of the usual business setting which affected the December 2019 quarter and therefore not an appropriate comparison period, an alternative test may need to be used.

2. Determine for each eligible employee based on their total hours of work (includes time for paid leave and paid absences on public holidays) for the ‘reference period’, being either the four (4) week period prior to 1 March 2020 or 1 July 2020.  Note that, where the:

2.1  80 hour work test has been satisfied = $1,000 per fortnight ‘Tier 1’; or
2.2  80 hour work test has not been satisfied = $650 per fortnight ‘Tier 2’.

Also note that, if an eligible employee’s pre-March or pre-July reference periods are not representative of their typical working hours, an alternative ‘reference period’ may be used.

With respect to Eligible Business Participants, the ‘reference period’ is the month of February 2020 only.

3. Qualifying employers have until 31 January 2021 to satisfy the wage condition by paying their eligible employees, that is:

3.1  $1,000 per fortnight for ‘Tier 1’; or
3.2  $650 per fortnight for ‘Tier 2’.

4. For employers with a turnover < $1 Billion (which now includes proceeds on sale of assets) to qualify, they must have:

  • been incorporated as at 1 March 2020;
  • ABN registration from 12 March 2020;
  • lodged a tax return or BAS by March 2020; and
  • a 30% or more decline in the December 2020 quarter turnover in comparison to 2019 quarter (turnover decline must be submitted online by 31 October 2020).

Schemes entered into that falsely claim JobKeeper will attract significant penalties.

If you satisfy the above eligibility criteria:

  1. Register for Jobkeeper 2.2 (Extension 2) now if not previously registered for JobKeeper 1.0 or 2.1 (please contact our office for assistance).
  2. Nominate eligible employees and stipulate if the employee/s will be paid ‘Tier 1’ or ‘Tier 2’ if not previously nominated for JobKeeper 2.1.
  3. Nominate an eligible business participant and stipulate if paid ‘Tier 1’ or ‘Tier 2’ if not previously nominated for JobKeeper 2.1.
  4. Employers must update payroll to include payroll items for both ‘Tier 1’ and ‘Tier 2’ if not previously enrolled in JobKeeper 2.1.
  5. Notify in writing eligible employees of the JobKeeper pay rate i.e. ‘Tier 1’ or ‘Tier 2’, within 7 days of registration for JobKeeper 2.2 (Extension 2).
  6. Make the minimum ‘Tier 1’ or ‘Tier 2’ payment to each eligible employee by 31 January 2021.
  7. Continue to comply with Fair Work flexible conditions (Fair Work Act 2009).
  8. Report turnover for December 2020 quarter on the same basis as shown on the entity’s Business Activity Statement (BAS) i.e. cash or non-cash.  If not registered for GST, turnover must then be reported on the same basis as your income tax return).
  9. Submit decline in turnover form to determine eligibility to participate in Jobkeeper 2.2 for the 4 January 2021 to 28 March 2021 period.  This must be submitted by 31 January 2021 (please continue reading below for further instructions).


If you would like our office to review your eligibility, please have your Reckon Accounts file reconciled to 31 December 2020 (or your information submitted by email to by 10 January 2021.

Lastly, If you wish our office to submit the decline in GST turnover form please click here to authorise our office to do so.

Contact our office if you need assistance.