New updates for JobKeeper Payments April 1

Following up from my previous articles regarding the announcement of the ‘JobKeeper Payment’ I thought I would let you all know that while the ATO are currently drafting the legislation, they are continually updating their fact sheets. To ensure that you all have access to the most current fact sheets, I have put a link to where the updated versions are located.

There are now three fact sheets and they are all located here: https://treasury.gov.au/coronavirus/jobkeeper

You can now also register for updates via the ATO here: https://www.ato.gov.au/general/gen/JobKeeper-payment/?=redirected_JobKeeper

One of the biggest changes to the factsheets that I have seen is the method in which employers will need to determine the 30% fall in turnover. Treasury has also advised that if you want to apply for the payment, that you will need to complete an application and provide supporting documentation.

See below extract direct from the updated factsheet:

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To establish that a business has face a 30% (or 50%) fall in their turnover, most businesses would be expected to establish that their turnover has fallen in the relevant month or three months (depending on the natural activity statement reporting period of that business) relative to their turnover a year earlier.

Where a business was not in operation a year earlier, or where their turnover a year earlier was not representative of their usual or average turnover, (e.g. because there was a large interim acquisition, they were newly established or their turnover is typically highly variable), the Tax Commissioner will have discretion to consider additional information that the business can provide to establish that they have been adversely affected by the impacts of the Coronavirus.

The Tax Commissioner will also have discretion to set out alternative tests that would establish eligibility in specific circumstances (e.g. eligibility may be established as soon as a business ceases or significantly curtails its operations). There will be some tolerance where employers, in good faith, estimate a greater than 30% fall in turnover but actually experience a slightly smaller fall.

Employers must elect to participate in the scheme. They will need to make an application to the Australian Taxation Office (ATO) and provide supporting information demonstrating a downturn in their business. In addition, employers must report the number of eligible employees employed by the business on a monthly basis.

Eligible employers will receive the payment for each eligible employee that was on their books on 1 March 2020 and continues to be engaged by that employer – including full-time, part-time, long-term casuals and stood down employees.

Casual employees eligible for the JobKeeper Payment are those employees who have been with their employer for at least the previous 12 months as at 1 March 2020. To be eligible, an employee must be an Australian citizen, the holder of a permanent visa, a Protected Special Category Visa Holder, a non-protected Special Category Visa Holder who has been residing continually in Australia for 10 years or more, or a Special Category (Subclass 444) Visa Holder.

Eligible employers who have stood down their employees before the commencement of this scheme will be able to participate. Employees that are re-engaged by a business that was their employer on 1 March 2020 will also be eligible. In circumstances where an employee is accessing support though Services Australia because they have been stood down or had their hours reduced and the employer will be eligible for the JobKeeper Payment, the employee should advise Services Australia of their change in circumstances online at my.gov.au or by telephone.

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If you have any problems, please do not hesitate to contact me on 03 9762 6652 or subscribe here to get updates as they are announced.