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Job Keeper - Update 14/04/20

The explanatory statement as issued by Treasury and the frequently asked questions.

I have highlighted a few points below.

The ATO has also updated their website. To register to receive job keeper payments p[lease go to:

https://www.ato.gov.au/general/JobKeeper-Payment/

Notes:

The Rules specify that the JobKeeper payment is available in fortnightly periods between 30 March 2020 and 27 September 2020 – a period of 26 weeks.

  1. A business that is entitled to the JobKeeper payment will receive a fixed payment of $1,500 per fortnight per eligible employee. The payment must have already been passed on to the eligible employee in full.

2. A business may be entitled to the JobKeeper payment for the business owner or a nominated owner regardless of whether the business has eligible employees.

  1. No GST is applicable to Job keeper payments

  2. Job Keeper will be for a maximum of 13 fortnights starting 30 March 2020 and ending 27 September 2020

  3. A key feature of the scheme is ‘one in, all in’ – all eligible employees must be nominated – including those stood down

  4. Employers must register prior to the end of the fortnight except for April in which case may register before end of April

  5. Must notify all eligible employees in writing that they have been elected to participate in the scheme- they must also agree

  6. Businesses must meet decline in turnover before eligible for job keeper payment

  7. Once a business has satisfied the test does not need to keep retesting

The periods for the turnover test period being compared by can be periods of one month or three months, where:

10. if a one month turnover test period is being used, it must be one of the following months:

a. March 2020;

b. April 2020;

c. May 2020;

d. June 2020;

e. July 2020;

f. August 2020;

g. September 2020; or

i. if a three month period is being used it must be one of the following periods:

h. the quarter that starts on 1 April 2020;

i. the quarter that starts on 1 July 2020.

  1. Accordingly, for example, a business can make the comparison by comparing the whole of the month of March 2020 with March 2019, or by comparing the quarter beginning on 1 April 2020 with the quarter beginning on 1 April 2019. These periods align with the reporting periods for which GST registered businesses submit GST returns on their business activity statement and allow the Commissioner to examine changes in GST turnover that is reported.

  2. Businesses, individuals and entities that deliberately enter into contrived arrangements with the sole or dominant purpose of reducing their turnover in order to gain access to JobKeeper payments or increase the amount of JobKeeper payments they receive will not be entitled to the payment or the increased payment and the general interest charge will apply on the overpayment under section 19 of the Act. In addition, significant administrative as well as criminal penalties are also likely to apply to the parties involved in such schemes.

  3. An alternative decline test may be used if a corresponding period not available – see example 4 on page 10

  4. A business is not entitled to the job keeper payment if a liquidator or trustee in bankruptcy has been appointed

  5. An eligible employee is :

16. On 1 March 2020:

a. the person was aged 16 years or over; (if they turn 16 after 1/3/20 they will not be eligible at that later date)

b. the person was an employee other than a casual employee of the employer, or was a long term casual employee of the employer; and

c. the person was an Australian resident (within the meaning of section 7 of the Social Security Act 1991), or was a resident of Australia for the purposes of the Income Tax Assessment Act 1936 and was the holder of a Subclass 444 (Special Category) visa.

i. At any time during the fortnight:

d. the person is an employee of the employer;

e. the person is not excluded from being an eligible employee. The exclusions relate to recipients of parental leave pay and dad and partner pay under the Paid Parental Leave Act 2010, and specified recipients of workers’ compensation.

There is also a requirement that eligible employees have provided a notice to their employer agreeing:

f. to be nominated by the employer as an eligible employee under the JobKeeper scheme as the employer with which the employee will participate in the JobKeeper scheme;

g. that they confirm they have not agreed to be nominated by another employer; and

h. that they do not have permanent employment with another employer if they are employed as a casual employee with this employer.

i. Super is only required to be paid on normal income not any job keeper top up of payment if the employee has not worked any hours

j. Within 7 days of providing details to the Commissioner the employer must notify the employee

Integrity Rule

17. Business must have had an ABN on 12 March 2020

a. Tax return lodged by 12 March 2020 (or later time allowed by the Commissioner) and

b. Made taxable supply after 1 July 2018 and before 12 March 2020 and have notified ATO (BAS must have been completed)

18. Some business owners may be eliglible

a. sole trader—the individual must be the entity;

b. partnership—the individual must be a partner in the partnership;

c. trust—the individual must be an adult beneficiary of the trust; and

d. company—either a director or shareholder in the company.

  1. Commissioner must make the payment for a fortnight no later than the later of:

a. 14 days after the end of the calendar month in which the fortnight ends; and

b. 14 days after the Commissioner is satisfied that the employer or business is entitled to the payment for the fortnight.

20. Monthly reporting is required of the following:

a. its current GST turnover for the reporting month; and

b. its projected GST turnover for the following month.

  1. The reporting month is a month in which there is a fortnight for which the entity is entitled to a JobKeeper payment. The report must be made to the Commissioner in the approved form, and must be made within 7 days of the end of the reporting month.

Please note this information n is provided as a guide only.

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