Job Keeper Update

by | Apr 9, 2020 | Business, Clients | 0 comments

On 8 April 2020, Parliament passed JobKeeper legislation to establish a framework for the Jobkeeper scheme to be administered by the Australian Tax Office (ATO).

The draft rules released yesterday by Treasury see slight changes from the rules previously proposed in various Treasury fact sheets and provide more detail on:

  • Who is eligible for JobKeeper payments?
  • When JobKeeper payments can be made.

At the time of writing, the previously released draft rules have been removed from Treasury’s website.

Who is eligible for JobKeeper payments?

Many of the changes in the draft rules relate to how businesses or charities can potentially qualify for the JobKeeper subsidy. Changes include:

  • An indication that a prospective GST turnover test will be used to determine if a business or charity has satisfied the reduction of at least 50%, 30% or 15% decline in GST turnover as compared to the previous year. This change means a business can potentially qualify for the JobKeeper incentive if the projected turnover decline (and not actual turnover) is more than the 50%, 30% or 15% threshold as compared to the same period last year.
  • Confirmation the $1 billion turnover test refers to aggregated turnover – turnover of all entities that are connected or affiliated. Therefore, this would include the turnover of overseas entities (e.g. Significant Global Entities).
  • Confirmation of the 50%, 30% or 15% expected fall in turnover relates to GST turnover (i.e. only on sales in Australia for stand-alone entities).

When JobKeeper payments can be made

To receive JobKeeper payments, the employer must notify the ATO in an approved form they intend to participate in the JobKeeper scheme.

At the time of writing, an approved form of notice has yet to be created, so in order to participate in the first two JobKeeper payments (commencing 30 March 2020 to 26 April 2020), the employer needs to notify the ATO they intend to partake in the JobKeeper scheme by 26 April 2020.

Check Out These Related Posts

Light bulb moment in business

Light bulb moment in business

In an instant—everything changed.  I was recently talking to my mentor, when it dawned on me. This wasn’t an option, it was a calling. An unshakeable feeling down to the very last cell in my body that I had to share my passion for entrepreneurship with the world....

read more
Avoid Debt During COVID19

Avoid Debt During COVID19

As we hear the government advise that we can approach our banks for great lending options during the pandemic, this gives many of us the safety net we need in our business, a sense of hope, and security in our business finances to ride this wave. The Australian...

read more

0 Comments

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.