[vc_row][vc_column][vc_column_text]JobKeeper – Important Updates

As we are drawing close to the end of the second JobKeeper fortnight we set out below an update as to Key Dates and some Important Information for employers.

As at April 23 (am) there had been in excess of 587,000 JobKeeper applications processed.[/vc_column_text][vc_column_text]Key Dates:

• Employers are able to enrol online now for the JobKeeper payment, the enrolment process requiring you firstly to estimate the number of eligible employees and whether you have an eligible business participant (non-salaried owner)
• For employers eligible for the JobKeeper payment in either the first or second JobKeeper fortnights (i.e. the fortnights commencing 30 March and 13 April) enrolment must be completed by 30 April
• For entitlements arising in any other fortnight enrolment must be completed by the end of that fortnight
• However, if employers need more time for the month of May, they may defer enrolment until the end of May
• Employers must send a ‘JobKeeper employee nomination notice’ to all nominated employees to complete and return to the employer by the end of the month in which they plan to claim the JobKeeper payment. (See link below to form)
• Actual registration of eligible employees commences from May 4. (See link below as to registration options for employers)
• Employers must notify all eligible employees in writing within 7 days of giving the ATO details of an eligible employee that they are claiming the JobKeeper payment with respect to them
• Entities must advise the ATO of their current and projected GST turnover on a monthly basis.  This is used to assist determine how businesses are progressing under the JobKeeper Payment scheme and does not affect the entity’s eligibility which needs only to be established once  
• Employers need only notify the ATO of their eligible employees once.  However, employers must review the list monthly and advise the ATO of changes
• The first payments to eligible employers will commence in the first week of May 2020
• Employers must pay all eligible employees in each JobKeeper pay period (i.e. each fortnight) to claim the JobKeeper payment for that period.  However, for the month of April all payments by the employer referable to the first 2 fortnights must be made by 30 April

[/vc_column_text][mk_button dimension=”flat” corner_style=”rounded” size=”medium” url=”https://www.ato.gov.au/assets/0/104/300/362/004e4999-5aee-480a-a38e-a668d9078aa0.pdf” target=”_blank” align=”none”]Nomination Notice[/mk_button][mk_button dimension=”flat” corner_style=”rounded” size=”medium” url=”https://www.ato.gov.au/general/jobkeeper-payment/In-detail/JobKeeper-guide—employers-reporting-through-STP/#Step2Identifyandmaintainyoureligibleempl” target=”_blank” align=”none”]Employee Identification[/mk_button][vc_column_text]Important Information:

Decline in Turnover

• Eligible GST turnover test periods for entities wishing to register for the month of April include:
  1. Month of March 2020
  2. Month of April 2020
  3. Quarter ending June 2020
• The turnover calculation in determining an employer’s eligibility is based on GST turnover
• GST turnover includes GST free supplies and excludes input taxed supplies such as interest and dividends
• Entities that have adopted the accruals basis of calculating their GST turnover must continue to use that method for the purpose of determining their GST turnover for the test periods
• However, entities who report using the cash basis of calculating their GST turnover have the option of using either the cash or accruals method.  The basis used must be the same for calculating both the entity’s projected and current GST turnover
• When estimating projected GST turnover (as you are perhaps using the month of April or the June quarter) you need to consider supplies an entity has made or is likely to make
• Accordingly, an entity’s actual GST turnover for a test period may actually be more than that estimated
• Where this happens, the entity must maintain all appropriate records to substantiate the methodology they have adopted in satisfying the reduction in turnover test
• There are a number of strict anti-avoidance rules for entities entering into schemes to obtain or increase their eligibility for JobKeeper payments (or other Coronavirus related incentives)
• The ATO has just today released a Legislative Instrument providing further guidance on the alternative ‘decline in turnover test’ under the JobKeeper rules.  We will provide further detail shortly

[/vc_column_text][vc_column_text]Non-employed business owners

• If you are a director or a shareholder of a company, a partner in a partnership, or an adult beneficiary of a trust, consider whether you may be eligible to be nominated as an eligible business participant.  Note:
  1. No payment is required to be made to these individuals by the employer to receive the JobKeeper payment
  2. Eligible business participants must not be added as an employee when registering the entity
  3. Each entity can have only one eligible business participant

• Problems that we have experienced with these provisions include:
  1. Many trusts do not have individual beneficiaries (eg unit trusts)
  2. Partnerships may not have individual partners
  3. Not clear as to when is there a business
  4. Is a director an eligible employee or an eligible business participant?

Many of the above JobKeeper processes can be done online via your Business Portal or alternatively the Trove team as your tax agent can assist.[/vc_column_text][vc_column_text]Cash Flow Boost – ATO Update

The ATO has just confirmed that the key eligibility criteria in the cash-flow boost measure requiring entities to have lodged on or before 12 March 2020 either their 2019 income tax return or an activity statement or GST return will not necessarily disadvantage entities whose due dates for these returns were deferred under a lodgement program with their Tax Agent.

Please contact us to discuss your business’s eligibility requirements to these measures as well as other possible concessions under the broad range of recent Federal and State Government announcements.[/vc_column_text][/vc_column][/vc_row]