Coronavirus Stimulus – Jobkeeper Payment Q&A
The Department of Treasury has released further details of the JobKeeper payment prior to it being passed by parliament tomorrow.
Some of the questions are:
How do I register?
Currently, a business registers its interest at https://www.ato.gov.au/Job-keeper-payment/
In you are unsure if your business is eligible, we recommend you still register.
When does it start?
It covers employees who were employed at the 1st March 2020.
The scheme commences from the 30th March 2020 and ends on the 27th September 2020.
The first payment is expected to be made to eligible employers in the first week of May 2020 and monthly thereafter in arrears.
How does the 30% turnover requirement work?
According to the Treasury release ‘ Turnover will be defined according to the current calculation for GST purposes and is reported on Business Activity Statements. It includes all taxable supplies and all GST free supplies but not input taxed supplies. There are some modifications for businesses that are part of a GST group. Further information on GST turnover, and how to calculate it, is available at ato.gov.au ’.
The turnover requirement needs to be met on a month by month basis. That is if your business fails the test for say April 2020 and is therefore not eligible, it can apply the test separately for May and then June and so on. A business may meet the 30% turnover test for each month over the term of the scheme or just some months. If your businesses turnover is seasonable or can’t easily be compared to the same month in 2019, the ATO has some discretion in applying the rules.
The ATO also says ‘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 30 per cent or more or 50 per cent or more fall in turnover but actually experience a slightly smaller fall.’
How will the amount be paid?
The JobKeeper payments will be paid directly to employers as it is intended to directly offset the cost of paying wages. This is contrast to the Boosting Cashflow for Businesses measures which will be credited to a business’s ATO Integrated Client Account.
Where do I go for further information?
Please see the Treasury link here https://treasury.gov.au/sites/default/files/2020-04/JobKeeper_frequently_asked_questions.pdf
We also expect further information will be released in the coming days.
Contact CrossCorp today for a no obligation discussion.
