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JobKeeper Payment: Supporting Businesses to Retain Jobs

The Federal Government has released details on how your business can access the JobKeeper Payment. Key facts are:

30% drop in Turnover Test:

• Based on BAS reporting period ie monthly or quarterly

• Based on BAS reporting method ie cash or accruals

• Includes all taxable supplies and GST Free supplies

• Turnover excludes GST

• Compares say March 20 BAS to March 19 BAS

• Only includes Australian based sales

• Apply if you reasonably expect turnover to drop

New Businesses or March period not representative of revenue drop:

• Tax Commissioner will consider additional information

• Tax Commissioner with have discretion to set alternate test

• You can register later if your business drops after March

Eligible Employees:

• Employed at 1 March 2020

• Includes full-time, part-time, casuals >12months and stood down employees

• Other employee criteria apply

• Employees receiving Parental Leave Pay from Services Australia not eligible

• Employees receiving Workers Comp and working are eligible, not working = not eligible

• Stood down employees must go back on the payroll of same employer to receive JobKeeper

• Payment only in respect of direct employees (not via labour hire)


• Employees employed at 1 March 2020

• For payrolls paid for the week, fortnight or month commencing 30 March 2020

• First payment from the ATO early May 2020

• Payments from the ATO are monthly in arrears

• Applies to payroll period until 27 September 2020

Business Funding of Payments:

• Your business has to fund the first month of payments before ATO reimburses you

Super & Entitlements:

• Full super paid if wage is >$1,500/fortnight

• Super only on usual wage if wage <$1,500/fortnight

• Salary Sacrifice super arrangements can continue as usual

• Entitlements continue to accrue

Trusts, Partnerships & Sole Traders (where revenue dropped by >30%):

• Trusts – ONE individual beneficiary can receive the payment

• Partnerships – ONE individual partner can receive the payment

• Sole Traders - can receive the payment

• Company Directors - ONE individual Director can receive the payment

• Shareholders - ONE individual Shareholder can receive the payment

• All the above only apply if the individual provides labour to the entity


Employers elect to participate and supply supporting information demonstrating downturn, register at Australian Taxation Office.

Please find below links to the recording of our recent webinar and a PDF copy of our PowerPoint explaining the COVID-19 Stimulus Package JobKeeper Payment in more detail, including how to access and live examples. See the YouTube video embed below or follow the link to YouTube

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