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)
Timing:
• 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
Register:
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