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  • Payment rates

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    Tier 1 and tier 2 rates

    For JobKeeper fortnights from 28 September 2020, there are two payment rates – a tier 1 (higher) rate and a tier 2 (lower) rate.

    The rate will be stepped down in two stages. The first payment rate decrease starts from JobKeeper fortnight 14 (28 September 2020). A further payment rate decrease starts from JobKeeper fortnight  21 (4 January 2021).

    JobKeeper fortnights tier 1 and 2 rates

    JobKeeper fortnights

    Tier 1 rate

    Tier 2 rate

    28 September 2020 – 3 January 2021

    $1,200

    $750

    4 January 2021 – 28 March 2021

    $1,000

    $650

    Entitlement to the tier 1 or tier 2 rate is based on whether an individual meets the 80-hour threshold.

    Entitlement to the tier 1 rate

    You are entitled to the tier 1 rate for your eligible employee, eligible business participant or eligible religious practitioner if they satisfy the 80-hour threshold.

    You are also entitled to the tier 1 rate for your eligible employee if we have determined the tier 1 rate applies to them. For more information, see Insufficient records – higher tier 1 payment rate.

    Entitlement to the tier 2 rate

    If you are not entitled to the tier 1 rate, then you are entitled to the tier 2 rate of payment.

    How to satisfy the 80-hour threshold

    There are two steps to satisfying the 80-hour threshold.

    Step 1: Determine the individual's reference period

    Eligible employees

    The 28 days finishing on the last day of the last pay period that ended before either:

    • 1 March 2020
    • 1 July 2020.

    If your employee was working for you during both 28-day periods, you will need to consider both reference periods.

    Eligible business participants and eligible religious practitioners

    The month of February 2020.

    In some circumstances, an alternative reference period can apply for your:

    • eligible employee
    • eligible business participant, or
    • eligible religious practitioner.

    The alternative reference period can be applied if the standard reference period is not suitable.

    There may be more than one reference period (including an alternative reference period) that applies to an individual. If the individual satisfies the 80-hour threshold in any one of these reference periods, then the tier 1 rate applies.

    More information:

    Step 2: Apply the 80-hour test

    Eligible employees

    Your employee's total number of hours of work, paid leave and paid public holidays during their reference period was 80 hours or more.

    Partnerships, trusts and companies

    Your eligible business participant:

    • was actively engaged in your business for 80 hours or more during their reference period, and
    • has provided you with a written declaration confirming this.

     

    Sole trader

    You:

    • were actively engaged in your business for 80 hours or more during your reference period, and
    • have notified us of this in your business monthly declaration.

     

    Eligible religious practitioners

    Your eligible religious practitioner:

    • spent 80 hours or more doing activities in pursuit of their vocation as a religious practitioner as a member of your religious institution, and
    • has provided you with a written declaration confirming this.

     

    More information:

    When to notify us

    Before you can claim a payment for a JobKeeper fortnight from 28 September 2020, you must notify us whether the Tier 1 or Tier 2 rate applies to each of your eligible employees, eligible business participant, or eligible religious practitioners.

    When to notify others

    Within 7 days of notifying us which rate applies, you must also notify each individual in writing of their rate.

    You do not need to do this if you are a sole trader claiming for yourself as an eligible business participant.

    Record keeping

    You must keep relevant records used to determine eligibility for a JobKeeper payment.

    Find out more:

    Last modified: 25 Sep 2020QC 63697