Eligible For Jobkeeper?

COVID Rent Relief
April 8, 2020
Coronavirus: Government’s JobKeeper Payment
May 10, 2020

Eligible For Jobkeeper?

STEP 1

– Check that you and your employees meet the eligibility requirements.

Are you an eligible employer?

Employers are eligible for the JobKeeper payment if all of the following apply:

  • On 1 March 2020, you carried on a business in Australia or were a not-for-profit organisation that pursued your objectives principally in Australia.
  • You employed at least one eligible employee on 1 March 2020.
  • Your eligible employees are currently employed by your business for the fortnights you claim for (including those who are stood down or re-hired).
  • Your business has faced either a
    • 30% fall in turnover (for an aggregated turnover of $1 billion or less)
    • 50% fall in turnover (for an aggregated turnover of more than $1 billion)
    • 15% fall in turnover (for ACNC-registered charities other than universities and schools).

How do you calculate your turnover decrease?

Basic Test
This test is satisfied where your projected GST turnover for the turnover test period falls short of your current GST turnover for the relevant comparison period, by the specified percentage (generally 30%).

a) Identify your turnover test period
Choose whether you are comparing your monthly or quarterly turnover. You can choose to compare the relevant month or quarter, regardless of whether you report quarterly or monthly.

So if you lodged quarterly BAS, you may select June quarter 2020, or you may select the month of April, 2020 for example.

b) Identify your relevant comparison period
Same period as above… in 2019.
i.e. June, 2019 quarter, or for example month of April, 2019.

c) Work out your relevant GST turnover

Cash or accruals basis

You may use an accruals basis of accounting to calculate both the current GST turnover and projected GST turnover as both calculations require you to include sales that you have made or are likely to make without any reference to when you are paid.

However, if you prepare your activity statements on a cash basis, the ATO will allow you to calculate both the current and projected GST turnovers on a cash basis. The basis used must be the same for calculating your projected and current GST turnover.

Typically, current turnover will equal your GST exclusive sales less your input taxed supplies.

Estimating your projected GST turnover

You need to identify the sales you made, or are likely to make, during the turnover test period.

Given that you can test eligibility part way through a period, when applying the fall in turnover test, you need to consider what you expect to happen for the remainder of that period. Relevant considerations include:

  • the period during which the business is not expected to trade because it has been closed due to the coronavirus, or its ability to trade has been restricted
  • recent patterns in trading that are expected to continue
  • revised business plans.

The reasons for a fall or expected fall in turnover are not prescribed and are not limited only to the direct impacts of the coronavirus.

d) determine which shortfall % applies
(Aggregated TO under $1 billion) will be 30%.

e) Determine if GST turnover has fallen by the specified shortfall percentage
(all figures excluding GST)
e.g. April, 2019 TO $100,000
April, 2020 TO $65,000
A fall of ($100,000 – $65,000) = $35,000 reduction
$35,000 / $100,000 = 35% reduction

Based on the TO drop, you may be an eligible employer

More detailed summary is here

Also you may be able to satisfy an alternate test if a new business etc

Are you or your employees eligible?

You are an eligible employee if you:

  • are currently employed by the eligible employer (including if you were stood down or re-hired)
  • were for the eligible employer (or another entity in their wholly owned group), either a
    • permanent full-time or part-time employee at 1 March 2020
    • long-term casual employee (employed on a regular and systematic basis for at least 12 months) as at 1 March 2020 and not a permanent employee of any other employer

Note, this one will unfortunately result in certain employees not being eligible, or needing to make the right and only choice.

  • were aged 16 years or older at 1 March 2020
  • were either
    • an Australian resident (within the meaning of the Social Security Act 1991) – visit the Services Australia website and read residence descriptionsExternal Link for more details
    • an Australian resident for the purpose of the Income Tax Assessment Act 1936 and the holder of a Subclass 444 (Special Category) visa as at 1 March 2020
  • were not in receipt of any of these payments during the JobKeeper fortnight
    • government parental leave or Dad and partner pay under the Paid Parental Leave Act 2010
    • a payment in accordance with Australian worker compensation law for an individual’s total incapacity for work.

Further details here

You need to notify your employees you will nominate them for JobKeeper payments and complete the nomination notice to confirm your agreement.

Ensure you continue to pay the minimum $1,500 before tax to each eligible employee each fortnight (starting with the fortnight 30 March – 12 April) to claim the JobKeeper payment for that fortnight.

STEP 2
– Today is the first day for formal registration, being 20.04.2020
– If you wish to claim payments for April, you must complete this process by 30.04.2020

Log into your myGovID account and complete the application form (bank details and estimated number of employees who will be eligible for April Jobkeeper payments)

The application process may need to be done via the new ATO system, and follow the detailed ATO JobKeeper guide. 

Have you got your MyGovID and relationship access manager sorted with ATO on your phone?

https://info.authorisationmanager.gov.au/get-started
https://www.mygovid.gov.au/how-do-i-get-set-up

Per ATO, you must do this by the end of April to claim JobKeeper payments for April.

STEP 3 
– Continue payments – On Time!

Continue to pay employees you are claiming for either

  • every subsequent fortnight until 27 September 2020
  • until their employees stop being eligible or your client opts out.

Contact us for COVID planning and implementation of strategies at 15% our normal charge rates.

We are also offering flexible payments plans, with our bills eligible to be paid off over 3 monthly instalments interest free!

Note: If you successfully refer our office a new business client, we can offer this COVID planning service at 50% off the final COVID planning invoice i.e. provide you with a further 35% discount, adding to the original 15% reduction.

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