Updated: May 21, 2020
The JobKeeper Registration process is now LIVE! This is what you need to do now.
Step 1 – Turnover Test:
First up, employers need to ensure they meet the eligibility requirements, mainly the turnover test, which for businesses with a turnover <$1B is a reduction, (or a likely reduction) in turnover of 30% or more. Step 2 – Notify Employees: Before you enrol to receive JobKeeper payments, you need to notify eligible employees that you (their employer) intend to participate in the JobKeeper scheme, and ask eligible employees if they agree to be nominated by you as their primary employer, so that you can receive JobKeeper payments for them. You need to provide these employees with the JobKeeper Payment - employee nomination notice and ask them to return it to you by the end of April if you want to claim JobKeeper payments for April. You do not need to lodge this form with the ATO. You will, however, need to keep the completed version of this form with your business records (generally for 5 years). Step 3 – Enrol via Business or Tax Agent’s Portal: The steps to enrol in JobKeeper are: 1. Log into your Business Portal ATO Business Portal using your myGovID 2. Select ‘Manage employees’ then the link for the JobKeeper Payment 3. Fill in the JobKeeper enrolment form by confirming the required fields:
Fall in turnover
Expected number of eligible employees
Eligible business participant (business owner that is not an employee)
Contact and bank details
We know this is confusing! If you get stuck, let us know and we will do this for you. Eligible Non-Employees: For sole traders, trusts, partnerships and working directors, you enrol one “eligible participant” in this same section. JobKeeper nomination notice form for eligible business participants (except sole traders) can be downloaded here JobKeeper Payment - employee nomination notice. Revenue Test:
The Basic Test is satisfied where your projected GST turnover for the test period falls short of your turnover for the comparison period 12 months ago, by the required 30% or more.
Turnover can be calculated for any of the relevant months or quarters being tested, starting from March 2020 or quarter April – June 2020 and running until 30 September 2020. This means that if you don’t satisfy the revenue drop for March or April, you might for May or June – keep testing every month or quarter until 30 September.
Important - You use the accruals basis of accounting to calculate both the GST turnover and the projected GST turnover. However, if you prepare your activity statements on a cash basis, you are also allowed to calculate both the current and projected turnover on a cash basis to see if you can meet the Basic Test.
To apply the Basic Test, you need to: Step 1: Identify the turnover test period (month or quarter)
Step 2: Identify the relevant comparison period (a year ago) Note: Turnover is EXCLUSIVE of GST Step 3: Work out the relevant GST turnover (cash or accruals) Step 4: Determine the shortfall percentage that applies (looking for 30% or more) Step 5: Determine if GST turnover has fallen by the specified shortfall percentage (fingers crossed!)
Projected GST turnover excludes:
JobKeeper payments (which are taxable business income BTW)
Sale of capital assets (like vehicles)
Investment income (like interest or dividends)
Supplier not connected with Australia (note exports are included)
This again is confusing – talk to us for help if you are unsure. More Than One Business or GST Group Where an entity operates two or more businesses, the turnover from each business is combined and treated as the turnover for the one entity. Entities that form part of a GST group must work out the GST turnover and apply the fall in turnover for each entity individually. No Comparison Period or Business Changed Significantly? For entities where there is no comparison period, such as a recently commenced new business, there will be an Alternative Test to calculate your revenue drop. More information on this test will be available soon JobKeeper Payment - Alternative Test. Monthly Report to ATO Once you are eligible, each month you must reconfirm your reported eligible employees to the ATO. This can be done through the Business Portal or via your registered Tax or BAS agent. If your eligible employees change or leave your employment, you notify the ATO through the business monthly declaration report. You must also provide information to the ATO of your current and projected GST turnover. This is not a retest of your JobKeeper eligibility, but rather an indication of how your business is progressing under the JobKeeper Payment scheme. You only need to pass the revenue test once to be eligible for JobKeeper until 30 September. For more information visit: ATO Guide - Enrol for JobKeeper Payment for Employers ATO JobKeeper Payment - Guides (these are good – worth a look)
Keep talking to us, we are here to help you through this process.
Jeni, Terry & the Sullivan Dewing Team