April 6, 2020

JobKeeper Payment Announcement – Update #2

[vc_row][vc_column][vc_column_text]Hello Everyone,

With Parliament meeting this week to pass the legislation we know the devil will be in the detail.

Treasury has however released updated Factsheets on April 5 to provide more guidance and “JobKeeper Payment-Frequently Asked Questions” is a useful resource.

Again, in the interest of expediency, we include a direct link to the resources below:[/vc_column_text][mk_button dimension=”flat” corner_style=”rounded” size=”medium” url=”https://treasury.gov.au/sites/default/files/2020-04/JobKeeper_frequently_asked_questions_0.pdf” target=”_blank” align=”none”]JobKeeper frequently asked questions[/mk_button][mk_button dimension=”flat” corner_style=”rounded” size=”medium” url=”https://treasury.gov.au/sites/default/files/2020-04/Fact_sheet_supporting_businesses_0.pdf” target=”_blank” align=”none”]Fact sheet supporting businesses[/mk_button][vc_column_text]The new information includes:

Employers:

Must elect to participate in the scheme.
The Job Keeper Payments will be available for the period March 30 2020 to 27 September 2020.
The employer must meet the payment requirements in each 14 day period.
The first period ends on April 12 2020.
- However, where the employer pays monthly, the ATO will be able to reallocate payments between periods.
Payments to employees can be paid as a fringe benefit, including superannuation.
- However, this form of payment must be agreed between both parties.
Employers must pay the employee first and then be reimbursed.
- Where this creates cash flow difficulties to some employers, businesses may be able to use the upcoming JobKeeper payment as a basis to seek credit from their banks in order to pay their employees until the first payment is received.
In determining the appropriate reduction in turnover:
- where employers were not in operation a year earlier, or where their turnover a year earlier was not representative of their usual or average turnover, the ATO will have discretion to consider additional information in establishing an employer has been adversely affected by the impacts of the Coronavirus;
- the ATO will also have discretion to set out alternative tests that would establish eligibility in specific circumstances (for example, 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 30 per cent or more or 50 per cent or more fall in turnover but actually experience a slightly smaller fall.
If a business does not meet the turnover test at the start of the JobKeeper scheme on 30 March 2020, the business can start receiving the JobKeeper Payment at a later time once the turnover test has been met. In this case, the JobKeeper Payment is not backdated to the commencement of the scheme.
No superannuation guarantee payments are required to be paid on any additional payment to $1500 per fortnight made because of the JobKeeper Payment.
Payments should be made using the employer’s payroll tax system and reported to the ATO via Single Touch Payroll to support the online claim process.

[/vc_column_text][vc_column_text]Self Employed and No wages:

Trusts can receive JobKeeper payments for any eligible employees.
- Where beneficiaries of a trust only receive distributions, rather than being paid salary and wages for work done, only one individual beneficiary can be nominated to receive the JobKeeper Payment.
An eligible business can nominate only one director to receive the payment, as well as any eligible employees.
An eligible business that pays shareholders that provide labour in the form of dividends will only be able to nominate one shareholder to receive the JobKeeper Payment.
Partnerships can nominate just one partner to receive the payment along with any eligible employees.

[/vc_column_text][vc_column_text]Turnover:

Turnover is to be defined according to GST turnover and is reported on BAS’s.
Only Australian sales are relevant.
Turnover includes all taxable supplies and GST free sales (not Input Taxed).
- NB Sale of asset (regardless of the profit) could impact turnover calculation.

Payments by ATO:

These will be paid monthly in arrears with first payments to be received in the first week of May.
They are to be paid directly to the employer and will not be used to offset existing tax liabilities (eg GST/PAYG Withholding).

Integrity:

The ATO will provide guidance to help businesses self-assess their eligibility.
The Government will include appropriate integrity rules to prevent employers from entering into artificial schemes in order to get inappropriate access to payments.
There will be serious consequences, including large penalties and possible imprisonment, for those trying to illegally get benefits under the scheme.

ACNC Registered Charities: