There have been a number of recent updates to the JobKeeper Payment initiative. I’ll take you through these updates explaining what they are and what businesses need to do to ensure they receive the benefits of the Job Keeper Payment.
JobKeeper Applications open on the 20th April
- You can now apply for the JobKeeper Payment from the 20th April 2020 using this link on the ATO website.
What you need to be doing right now
- Employers should be starting to add their 1500s into their payroll now and ideally in place for employees in the normal pay cycles after 30 March.
More information on how you qualify for JobKeeper Payment
- When assessing your decrease in turnover, you should base this on projected GST turnover against the same period of the previous year. For example, April 2020 versus April 2019. Or say projected turnover for Quarter 4 in 2020 compared with Quarter 4 in 2019.
- The Commissioner of Taxation has the discretion to use alternative tests to determine the reduction in turnover, however these rules have not yet been announced. The commissioner discretion is designed to cover all the new business set up situations less than 12 months old.
- Where you have a separate employer entity in your group, away from the trading entity, it is the employer entity’s turnover (which would ordinarily be done via a formal invoiced recharge on which GST would be chargeable) that needs to have decreased by 30%. When considering this decrease, the mark-up principles should not change when calculating your recharges, otherwise you may fall foul of the guidance on obtaining the support packages improperly.
- Businesses can only receive JobKeeper payments going forwards up to 27 September 2020.
Businesses without employees
- Businesses without employees will need to provide an ABN for their business, nominate an employee to receive the payment and provide that employee’s Tax File Number and provide a declaration as to recent business activity.
What happens if a business doesn’t meet the turnover test at the start
- If a business doesn’t meet the turnover test at the start of the JobKeeper Payment scheme on 30 March 2020, the business can start receiving the JobKeeper Payment at a later time, once the turnover test has been met.
- It’s worth noting, the JobKeeper Payment is not backdated to the commencement of the scheme.
- Where casuals don’t qualify for the JobKeeper Payment because they haven’t been employed for 12 months. Instead of the $1,500 gross JobKeeper Payment, they will be eligible for a Centrelink Payment of $1,100 tax exempt.
If you need help to understand how the JobKeeper Payment applies to your business or help manage the application process from start to finish, please contact me on my mobile 0405 510 380 or firstname.lastname@example.org
We’re thinking of you and your families during this challenging time. And together we’ll get through this.
Take care everyone!
Partner | RBG