Category: Newsletters

Deed of Variation – NSW Surcharge Land Tax



In June 2016 the NSW government introduced two surcharges payable by a ‘foreign person’ purchasing and/or owning residential property in NSW:

  1. Surcharge Purchaser Duty – currently 8% of the market value of the residential property – payable once upon acquisition;
  2. Surcharge Land Tax – currently 2% of the unimproved value of the residential land – payable annually on such land owned as at 31 December each year.
Trust Deeds

Residential property and/or land held in trust wherein any person is deemed to be ‘foreign’ – an individual, a corporation, a trustee ‘not ordinarily resident in Australia’ and who holds a ‘substantial interest’ of 20% or more, including beneficiaries of a trust* – means the trust is liable to pay the surcharge/s. Where this is the case, a trust deed may be varied by drawing up a Deed of Variation to exclude any foreign person/s.

* For a full definition of ‘foreign person’, see https://www.revenue.nsw.gov.au/help-centre/resources-library/g009

Deed of Variation

By now, many discretionary trust deeds have been amended to exclude foreign person/s from benefiting from a trust. Did you amend your trust deed prior to 31 December 2019? Transitional provisions allowing amendments to be made to exclude foreign beneficiaries are now in place and must be made and executed by midnight 31 December 2020.

If you have not yet reviewed and considered your trust, it is time to consult YML Group for an assessment of the ‘foreign’ status of your trust. A Deed of Variation may be used – going forward – to reduce and/or exempt your trust’s surcharge liabilities.

How can YML help?

Talk to our Accountants today to see how YML Chartered Accountants can assist you with your Trust Deed of Variation. Contact us on (02) 8383 4400 or by visiting the Contact Us page on our website.

Bookkeeper Service – Why does your business need it?



Stay focused on your business by using a bookkeeping service to manage the day-to-day financial data. YML Group’s Business Process Outsourcing (BPO) service offers Bookkeeping to help you turn your attention towards the growth aspects – such as strategy and marketing – of your business.

What does a bookkeeping service do for your business?

Bookkeepers, generally, are involved in the daily tasks of financial data entry, including taxes, payroll, managing debtors and creditors, as well as tracking expenses and adhering to a company’s financial reporting protocols. A bookkeeping service can play a crucial role by undertaking the routine monetary work required to run a business.

Whereas, an accountant will oversee your business’s finances and will take an analytical approach to your financial data with their expertise in financial forecasting, profit and loss analysis, filing taxes and managing financial statements, including preparing a myriad of financial reports.

How might your business benefit from a bookkeeping service?

Up-to-Date Financial Accuracy

Running a business requires many fast-paced actions, including decision-making. Where a business owner has to deliver informed decisions requiring up-to-date financial information, the benefit of a bookkeeping service that manages that information means a business owner can readily improve a business with the knowledge of whether it can, for example, hire a new employee, increase office space or issue a purchase order for a new asset.

Tax-Time Compliance

There is a swathe of regulations around company taxes, including GST, BAS and PAYG withholding tax. It is important that a business keep financial records that enable accurate and timely reporting to the Australian Taxation Office (ATO).

If a business tries to manage their books themselves without the necessary qualifications or experience, there is a risk that the financial data is incorrectly entered and ATO penalties could be incurred. Missed tax payments due to human error or lack of knowledge can be avoided by using a bookkeeping service to stay on top of a company’s regulatory financial obligations and thereby reduce unwelcome costs to a business.

Management of Bills and Receipts

Businesses grow and become more complex – more customers, more products, more third-party suppliers, requiring an increase in payments and receipts. To prevent falling behind on paying creditors and to improve collection of receivables, a bookkeeping service ensures that liabilities are paid and that reminders are sent to debtors. Keeping check is what a bookkeeper is good at, improving a company’s credit rating and borrowing profile.

Timely Reporting of Financial Data

‘Balancing the books’ is essential for a successful business and when financial records are kept accurately and up-to-date, so financial reporting is easily produced for a business owner and other business stakeholders.

Working closely with a company’s accountant, a bookkeeper can deliver up-to-the-minute financial data necessary for an accountant’s analysis, forecasting and reporting.

Confidence to Focus on Future Business-Building

Bookkeeping, such as YML’s BPO service, is an affordable necessity for a well-run company and its growth-centric business owner. Overseeing the front-of-house operational functions to build a business is paramount for a business owner. If a business owner can leave the back-of-house functions such as financial data entry to experts by using a bookkeeping service, it makes sense to do so.

Developing a viable business model with a customer focus requires confidence, so trusting in a service to manage the books can make a huge difference to a company’s success.

YML is a leader in the field of BPO and we have helped many clients – individuals and SME companies – to build better businesses with the practice of outsourcing their business processes. Empower your organisation with BPO through YML Group Outsource Manila and watch your business grow.

How can YML help?

Talk to our YML Business Services Team today to see how YML Group can assist you with your Bookkeeping requirements. For more information, view our website and contact us on (02) 8383 4400 or by using our Contact Us page on our website.

Using your Equity to Lower your Rate AND to Invest



Your home’s equity could open investment opportunities to improve your future wealth. By using equity in your home as collateral to borrow money, you could qualify for a Home Equity Loan.

How much equity?

First, it is important to calculate how much you still owe on your home loan. You can do this by ascertaining a current valuation of your home and comparing your home’s value with the amount you have yet to pay off your mortgage.

If your home is valued at $850,000 and you still owe $500,000 on your mortgage, then the difference of $350,000 = your gross equity.

How can equity be used?

Whether you want to renovate your home to further improve its value, you want to buy another ‘investment’ property or you want to invest in shares and managed funds, your equity can be used to borrow at a lower ‘residential’ interest rate than, say, 2.49% PA variable up to 60% LVR.

To borrow using your equity as collateral, a lender will assess your income, your living costs and your liabilities before usually lending up to 80% of the value of your home.

If your home is valued at $850,000 and a bank lends 80% of the value = $680,000, then you must deduct your existing mortgage amount-owing of $500,000. Your useable equity is therefore $180,000.

You may borrow more than 80% of the value of your home if you pay Lenders Mortgage Insurance. Note, this might lead to an increase in your loan repayments.

Home Equity Loan

To generate money for investment, although not a conservative approach, using your equity to take out a home loan can give you the opportunity to invest and grow your future wealth. Furthermore, borrowing against your home equity may be tax-effective as some investment expenses can be tax-deductible.

To help you decide whether releasing your home equity makes sense in your individual circumstances and to start exploring your investment opportunities, consult YML Group for expert financial advice.

How can YML help?

Talk to our YML Finance Team today to see how YML Group can assist you with your home equity. For more information, view our website and contact us on (02) 8383 4400 or by using our Contact Us page on our website.

2020-21 Federal Budget – Update

The Australian Government’s 2020-21 Federal Budget has been designed to increase employment and boost businesses during the ongoing COVID-19 pandemic. Key initiatives in the areas of personal taxation, job creation and infrastructure spearhead an array of economic measures intended to boost production in Australian industry.

Australia’s Economy

In the June quarter this year, the Australian economy contracted by 7%.

Australia’s Treasurer has revealed an expected deficit of $213.7 billion in 2020-21. He announced a deficit fall to $66.9 billion by 2023-24.

Australia’s gross debt will increase to 45% of GDP ($872 billion) this year and then stabilise at around 55% of GDP in the medium term, whilst Australia’s net debt will increase to 36% of GDP ($703 billion) this year and then peak at 44% of GDP in June 2024, declining to less than 40% of GDP in the medium term.

Personal Income Tax Plan

Planned personal income tax cuts have been brought forward by two years and will now apply from 1 July 2020. What this means is…

From 1 July 2020 (subject to legislation being passed), $17.8 billion worth of tax cuts will improve the net income of workers as follows:
Tax Thresholds
 Tax Rate  Current  From 1 July 2020
 0%  $0 - $18,200  $0 - $18,200
 19%  $18,201 - $37,000  $18,201 - $45,000
 32.5%  $37,001 - $90,000  $45,001 - $120,000
 37%  $90,001 - $180,000  $120,001 - $180,000
 45%  >$180,000  >$180,000
 LITO  Up to $445  Up to $700


An extension of the LMITO (Low and Middle Income Tax Offset) will mean a tax reduction of up to $1,080 for individuals with a taxable income of up to $126,000 during the 2020-21 financial year.

Economic Support Payments

Eligible recipients will receive two tax-exempt economic support payments of $250 each – one in November 2020 and the second in early 2021. People eligible are those currently receiving and/or holding (*conditions apply):

 Age Pension  Pensioner Concession Card*
 Disability Support Pension  Commonwealth Seniors’ Health Card
 Carer Payment  Veterans’ Affairs Payment*
 Family Tax Benefit*  Veterans’ Affairs Concession Card*
 Carer Allowance*  


Capital Gains Tax – Granny Flats

From 1 July 2021 (subject to legislation being passed), a new measure would provide for a targeted CGT exemption for granny flats where a formal written agreement – family/personal, NOT commercial – is created, varied or terminated for older Australians or Australians with disabilities.

First Home Loan Deposit Scheme

For first home buyers purchasing a new home or a newly-built home, an additional 10,000 places will be available under the First Home Loan Deposit Scheme – from 6 October 2020 until 30 June 2021. This means more people purchasing homes for a minimal 5% deposit without mortgage insurance.

Superannuation

A reform to superannuation will see individuals able to use their current superannuation fund whenever they change employment, thus impeding any duplication of funds. Under this reform, a super fund would be ‘stapled’ to an individual.

From 1 July 2021, if an employee does not nominate a super fund account when they start a new job, an employer will pay the super contributions in to the new employee’s existing super fund – by obtaining information about the new employee’s existing super fund from the ATO. How? An employer will log on to ATO online services and enter the new employee’s details to determine the employee’s existing super fund account.

If an employee does not have an existing super fund account and does not decide upon a super fund, then an employer will pay the super contributions in to the default (company-nominated) super fund.

NEW JobMaker Hiring Credit

A new scheme to help increase employees in businesses has been developed. Called JobMaker Hiring Credit, it is available to eligible employers over 12 months from 7 October 2020 for each new position created.

Eligible employers can receive:

JobMaker Hiring Credit is capped at a maximum of $10,400 per additional new position created.

Employees must: Capital Asset Investment Deductions

To help businesses with less than $5 billion in turnover to invest in their future, this new measure enables them to fully expense new depreciable assets and the cost of improvements to existing eligible assets in the first year of use – acquisition of eligible capital assets from 7:30pm AEDT on 6 October 2020 and first used or installed by 30 June 2021.

Whereas the existing Instant Asset Write-Off is for asset purchases up to $150,000 (for businesses with less than $500 million in turnover and not applicable on purchases after 31 December 2020), this new measure does not cap an asset’s cost.

Carry-back Company Losses

The full expensing of capital asset investment will generate tax losses for some companies. Therefore, the new measure of enabling a company to carry-back losses will generate cash refunds for eligible companies. How does it work?

For eligible companies with less than $5 billion in turnover, losses may be applied against taxed profits in a previous year, thereby generating a refundable tax offset in the year in which a loss is made.

Losses from income years 2019-20, 2020-21 and 2021-22 may be carried-back to offset previously taxed profits in income years 2018-19, 2019-20 and 2020-21.

Eligible companies can receive their tax refunds after lodging tax returns for 2020-21 and 2021-22.

R&D Tax Incentive

As at the release of the Federal Budget, numerous and varied proposed amendments to the R&D Tax Incentive are before Parliament.

Currently, the R&D Tax Incentive provides (for the first $100 million of eligible expenditure):

Business Tax Concessions – Expansion

Government incentive to help businesses sees a range of tax concessions now available to businesses with an aggregated turnover of up to $50 million (previously only available to small and medium businesses).

There are three phases of expanded tax concessions:

Phase I
 From 1 July 2020
  • Immediate deduction for certain start-up expenses
  • Immediate deduction for prepaid expenditure
Phase II
 From 1 April 2021
  • FBT car parking exemption
  • FBT exemption on portable electronic devices
Phase III
 From 1 July 2021
  • Simplified trading stock
  • PAYG instalments based on GDP adjustment amount
  • Settle excise duty and excise-equivalent customs duty monthly
  • Two-year amendment period to some income tax assessments


Retraining / Reskilling Workers FBT Exemption

From 2 October 2020, employer-provided retraining and reskilling of employees who are redeployed to a different role within a business* will be FBT exempt (*conditions apply).

Corporate Residency Test

The Corporate Residency Test will be changed to clarify the treatment of a company which is incorporated offshore. The change means that a company, incorporated offshore, will be treated as an Australian tax resident if it has a ‘significant economic connection to Australia’, satisfied by both:

FBT Record-Keeping - Simplification

In the first FBT year (1 April) after the date on which legislation is passed, employers will be enabled to rely on existing corporate records – as opposed to employee declarations – for FBT purposes.

100,000 New Apprenticeships

From 5 October 2020, a 50% wage subsidy will be available to eligible businesses that take on a new or recommencing Australian apprentice or trainee up until 30 September 2021.

The 50% wage subsidy is capped at a maximum of $7,000 per quarter.

How can YML help?

We hope that this guide helps you to navigate the 2020-21 Federal Budget. Please talk to our Accountants today if you would like to engage YML Chartered Accountants to manage your ‘road to recovery’. Contact us on (02) 8383 4400 or by visiting the Contact Us page on our website.

JobKeeper 2.0 – Extension 1 and Extension 2



From 28 September 2020, an employer may be eligible to access JobKeeper 2.0, a temporary wage subsidy for each eligible employee, at new lower rates until 28 March 2021. Whether you have accessed JobKeeper before now or are new to exploring your eligibility, all employers may consider JobKeeper 2.0 for their employees.

Now that JobKeeper 2.0 has started, this is what you need to know:

First, it is important to note that having previously been eligible for JobKeeper does NOT mean that your business will automatically be eligible for JobKeeper 2.0. Employers of eligible businesses will need to reassess their eligibility under a new set of requirements in early October 2020 and again in early January 2021.

Employer Eligibility:

From 28 September 2020, to receive JobKeeper 2.0, you must be an eligible employer or business.

To be eligible, your business is covered by the Fair Work Act and your business qualifies for JobKeeper – an Australian business employing at least one eligible employee during a JobKeeper payment period – and your business satisfies the actual decline in turnover test for the relevant quarter using actual sales (not projected sales).

You might need to demonstrate the relevant decline in turnover with a certificate from an accountant or a statutory declaration if you have a small business with fewer than 15 employees.

If you meet the criteria to receive JobKeeper 2.0, then you may give a JobKeeper enabling direction (such as changing work hours, duties and/or location – if reasonable in all the circumstances) under the Fair Work Act.

Two Tiers of JobKeeper 2.0 Rates:

TIER 1

$1,200 (before tax) per fortnight from 28 September 2020 until 3 January 2021 – for those employees who worked 80 hours or more in the four weeks prior to 1 March 2020 or 1 July 2020

$750 (before tax) per fortnight from 28 September 2020 until 3 January 2021 – for those employees who worked fewer than 80 hours in the four weeks prior to 1 March 2020 or 1 July 2020.

TIER 2

$1,000 (before tax) per fortnight from 4 January 2021 until 28 March 2021 – for those employees who worked 80 hours or more in the four weeks prior to 1 March 2020 or 1 July 2020

$650 (before tax) per fortnight from 4 January 2021 until 28 March 2021 – for those employees who worked fewer than 80 hours in the four weeks prior to 1 March 2020 or 1 July 2020.

Under both JobKeeper 2.0 Tiers 1 and 2, employers will pay a greater proportion of their employees’ wages because the minimum wage condition will still apply.

DATE REMINDER:

Extension 1 – From 28 September 2020 until 3 January 2021 Extension 2 – From 4 January 2021 until 28 March 2021

If you would like YML to manage Extension 1 of the JobKeeper 2.0 Incentive process for you, please do the following urgently. (Note, this engagement is for Extension 1 only at this point in time due to unknown possible impacts COVID-19 might have on your business. We will notify you of another engagement link for Extension 2 in our December 2020 newsletter).

  1. Click the link below to engage us and provide us with your bank account details
    2. https://app.hellosign.com/s/BohX9nzx
  1. Click the link below if you are a business owner – and not an employee – and have not yet completed the Business Participant form
    2. https://app.hellosign.com/s/Hu4BQXtt
  1. Provide the link below to your eligible employees that you had as of 1 July 2020 (who were not already eligible employees for any JobKeeper fortnights that ended on or before 2 August 2020)
    2. https://app.hellosign.com/s/7d8d4gQE

How can YML help?

We hope that this guide helps you to access the JobKeeper 2.0 Incentive scheme independently if that is your preference. Alternatively, please talk to our Accountants today if you would like to engage YML Chartered Accountants to manage an application on your behalf. Contact us on (02) 8383 4400 or by visiting the Contact Us page on our website.

COVID-19 and Estate Planning – Your Will



The year 2020 has brought with it the arrival of the COVID-19 virus to Australia’s shores. The unpleasant daily news of a ‘death tally’ presents us with an unimaginable scenario for ourselves. Many of us might find ourselves thinking about how to plan for family members left behind in the case of our own death. If you find yourself asking “What if?”, then perhaps it is a wake-up call to start reviewing any existing estate plan or to consider commencing estate planning arrangements.

Generally, people put off estate planning until too late or they have wills, trusts and documents that are no longer appropriate. Now is not the time to procrastinate but rather to apply a sense of urgency. Although generally a dreaded job, the benefit of doing this now is that you can potentially find comfort in knowing that your families, loved ones and dependents will be looked after in the event of your death.

Estate planning involves taking an inventory of what documents you need to have in place for unforeseen circumstances, especially ill health, and determining what your financial situation would be at the end of your life.

Documents may include one or more of the following:

At the present time, it is worth considering some of the consequences of dying without a valid will (especially if you die intestate in Australia):

For peace of mind, you might prefer some professional advice about drawing up your will and assessing your financial position. YML Group has the expertise and experience to help you move forward with a sense of relief.

How can YML help?

Talk to YML Group today to see how YML Group can assist you with your estate planning. Contact us on (02) 8383 4400, or by visiting the Contact Us page on our website.

How RPA and Bots are making Employees happier



Integrating robotic process automation (RPA) and bots in to your workplace might seem difficult, but many companies are achieving harmony between technology and their employees. Is it possible to have happier human workers despite RPA and bots in the workplace?

RPA is the use of software robots to process high volume, repeatable tasks by converting those tasks in to automated steps, providing a business with advantageous propositions such as reducing standardising workflow, reducing human error, improving productivity and saving time and money.

RPA ultimately improves value from employees who are freed from monotonous, manual tasks to focus on building work relationships and undertaking customer service.

Customers benefit from greater streamlined interaction with a company that uses RPA, but a company’s employees can also reap benefits. RPA helps employees to be more effective in the workplace, to enhance their human interactions and to work more strategically – and, yes, with a focus on their customers.

Employees may be happiest when they can equip themselves with technological tools that help them to work productively and at a higher cerebral level, simultaneously enabling a higher degree of human-to-human contact.

Today, most companies that use RPA and bots report high levels of employment satisfaction – after these technologies are incorporated alongside their employees – mostly around increased human interactions. With the effect of RPA being a reduction or elimination of back-of-house, tedious and repetitious tasks, employees may feel that their work contribution is now more meaningful.

When employees feel appreciated for their work, both by their superiors and the colleagues, therein lies the prospect of improved work productivity. As the full potential of RPA and bots becomes more exploited by a company’s management, so too is a business’s workforce able to engage more in the full scope of customer service and interpersonal development.

To free up your employees from labour-intensive manual tasks, and the associated stress of such work, and instead to help them to add value to your business, consider where your company can install suitable RPA and bots.

It is vital to identify the inefficient processes that require RPA alternatives and thereby remove the type of work that holds employees back from far more interesting and worthwhile work. Where RPA and bots play their greatest part is ‘partnering’ with humans and empowering employees in their jobs.

How can YML help?

Talk to our YML Innovation Team today to see how YML Group can assist you with digital automation. For more for more information, view our website and contact us on (02) 8383 4400 or by using our Contact Us page on our website.

How to get on top of your finances post COVID-19



COVID-19 has wrought difficult times for most people in Australia. Employment has been hardest hit and many workers have had to face adjustments such as reduced hours of work, lower pay, lower revenue from business or even the loss of a job.

Historically, when financial markets are hit by shocks, there is a rebound and a return to a generation of income for investors. It is an important time now to look at your investments, your job, your business and work towards your longer-term financial health post COVID-19.

Australia’s Response – Restrictions

Despite the unprecedented crisis of this pandemic, Australia has responded with a collaborative approach on all fronts. Political decisions and community compliance with social distancing measures have helped Australia weather the initial wave of COVID-19. As of now, in most Australian states, health challenges have been flattened, but industry sectors have experienced different impacts from the various restrictions and lockdowns.

Australian’s geographic good fortune has also played its part. Now, it is up to Australia to take stock of impediments to financial growth and find opportunities in the crisis by focusing on reforms that support a return to high employment, that secure investment in Australian industry and that make it easier for individuals and companies to do business.

Individuals – Personal Financial Recovery

Many people can no longer rely solely on their jobs or careers and have been forced to adapt to life with a reduced income for the foreseeable future. During this time, it is essential that you keep an eye on your longer-term financial health and avoid unnecessary spending and debt.

As the economy improves, so too can your opportunity for wealth and securing your investments. People who have invested in property during the economic downturn need to carry out a financial health check to ensure they can sustain themselves over the coming months and years.

Where you have a job, having a discussion with your employer to determine the best approach to continuing your employment and requesting a review for increased hours and/or pay is vitally important.

Re-skilling or up-skilling through further education might be an option for you, especially where you find yourself currently without work.

When considering how to manage financially, seek professional advice from YML Group or your trusted financial advisor.

Companies – Business Financial Recovery

Australia’s business sector is linked to the global economy, particularly trade and tourism. The Australian economy is being unequally impacted: some industries are making progress and others are floundering.

To date, the Australian Government’s collaborative approach on a national level is seeing Australians supported through this financial crisis. Future changes to taxation, industrial relations, education and regulations will help to underpin the business sector.

In the meantime, actions taken by business operators and within individual business sectors can help financial recovery post COVID-19.

Where survival is in jeopardy, a business can look at building its resilience by:

Where a business is struggling but is hanging in there, it can aim for strengthening its workforce by:

Where a business has experienced a surge in revenue, it can position itself advantageously by:

Post COVID-19 – Moving forward

Conserving cashflow, budgeting, investing wisely and investigating industries with future growth potential, such as digital, healthcare, science and technology are all helpful to securing your financial future post COVID-19.

With the Australian Government’s prediction that unemployment could ease towards two digits by year’s end, the outlook for financial recovery appears glum, however individuals and businesses can do much to get on top of their finances with government assistance, early intervention with financial health checks and financial advice from experts.

How can YML help?

Talk to our YML Financial Planning Team today to see how YML Group can assist you with your financial health. Contact us on (02) 8383 4400, or by visiting the Contact Us page on our website.

General Outsourcing Services provided by YML



Business Process Outsourcing (BPO) is a valuable tool for Australian businesses. It enables an organisation to develop and utilise virtual working relationships in, for example, Manila of The Philippines. BPO can provide many advantages to onshore employees. It can enable Australian businesses to redistribute their onshore workforce and to refocus their internal resources to create a more robust business strategy.

Benefits of making practical and effective use of remote workers may include:


YML Group Outsource Manila manages your remote staffing needs. Your business processes can be fulfilled by dedicated, professional, industry-specific remote staff and YML will hire suitable staff and provide them with a safe and secure working environment in YML’s offshore office in Manila of The Philippines.

We have staff in Manila with the expertise and knowledge to fulfill all business processes including but not limited to:


You will be able to work directly with your remote staff in your time zone, developing protocols for effective communication via software tools and other technical channels with equivalent onshore employees.

YML is a leader in the field of BPO and we have helped many clients – individuals and SME companies – to build better businesses with the practice of outsourcing their business processes. Empower your organisation with BPO through YML Group Outsource Manila and watch your business grow.

How can YML help?

Talk to our YML Business Services Team today to see how YML Group can assist you with your BPO requirements. For more for more information, view our website and contact us on (02) 8383 4400 or by using our Contact Us page on our website.

Economic Stimulus Package Updates – JobKeeper 2.1



As a business owner, you may be eligible to access JobKeeper, a temporary wage subsidy, enabling businesses to pay each eligible employee $1,500 per fortnight until 27 September 2020. Lower tiered rates of JobKeeper will be available from 28 September 2020 until 28 March 2021.

On 7 August 2020, the Australian Government announced additional changes to the JobKeeper Payment scheme and those changes mean easier accessibility for many businesses and their employees.

Firstly, if your business currently receives JobKeeper, JobKeeper payments at the current rate of $1,500 per eligible employee will continue unchanged until 27 September 2020.

Thereafter, JobKeeper 2.1 kicks in and this is what you need to know:

Employee Eligibility Change – Affecting Current and Extended JobKeeper (2.1)

Until now, an employee was considered eligible for JobKeeper if they were employed for at least four weeks on 1 March 2020. From 3 August 2020, employee eligibility extends to those employees working for at least four weeks on 1 July 2020. This means more employees will be potentially able to access JobKeeper and receive financial support.

An eligible business may now claim JobKeeper for employees who worked full-time and part-time on 1 July 2020, casual employees who worked for over 12 months on 1 July 2020 and employees who turned 18 years of age between 1 March 2020 and 1 July 2020.

Turnover Test Change – Affecting Extended JobKeeper (2.1)

In the initial phase of JobKeeper, a business was required to provide evidence of multiple quarters of reduced turnover. From 3 August 2020, a business must now only show a reduction in the previous quarter for each quarter’s JobKeeper Payments to be received.

Under this basic turnover test, a comparison is made between your business’s GST turnover in a defined 2020 period compared with the same period 12 months prior.

Lower JobKeeper Rates – Affecting Extended JobKeeper (2.1)

JobKeeper 2.1 will be based on the hours worked by employees in the four weeks prior to 1 March 2020 or 1 July 2020. There will be two tiers of JobKeeper rates:

High Tier – $1,200 per fortnight until 3 January 2021, reducing thereafter to $1,000 per fortnight – for those employees who worked 20 hours or more per week.

Low Tier – $750 per fortnight until 3 January 2021, reducing thereafter to $650 per fortnight – for those employees who worked fewer than 20 hours per week.

Under JobKeeper 2.1 employers will pay a greater proportion of their employees’ wages because the minimum wage condition will still apply.

REMINDER – Employer Eligibility – Affecting Extended JobKeeper (2.1)

Employers of eligible businesses will need to reassess their eligibility at the end of September 2020 and again in early January 2021.

If you would like YML to manage the JobKeeper Incentive process for you, please do the following urgently:

If you would like YML to manage the NEW JobKeeper 2.1 Incentive process for you, please do the following urgently:



How can YML help?

We hope that this guide helps you to access the JobKeeper 2.1 Payment scheme independently if that is your preference. Alternatively, please talk to our Accountants today if you would like to engage YML Chartered Accountants to manage this application on your behalf. Contact us on (02) 8383 4400 or by visiting the Contact Us page on our website.