On April 8th, the JobKeeper package was passed by both sides of Parliament and legislated. This update offers further guidance on the scheme.
Workers with multiple jobs
If you are employed by multiple businesses, you are only eligible to receive the payment from your nominated primary employer.
Timing
The JobKeeper will be available from March 30 and will last until September 27 2020, employers can expect to receive payments from the first week of May. Payments will be made monthly by the ATO in arrears.
Businesses Eligibility
Businesses can apply for the payment if your turnover will fall by 30% or more (or by at least 50% for businesses with a turnover of greater than $1 billion or more), relative to turnover of a corresponding period of the previous year.
For businesses who reasonably expect their turnover to fall in the coming month by either 30% or at least 50% for those with a turnover of more than $1 billion relative to that of a previous year, the ATO will provide guidance about self-assessment of actual and anticipated falls in turnover.
If you do not initially meet the turnover test at the start of the scheme on March 30, the business can receive the payment once the turnover test has been met.
For new businesses or businesses with a ‘lumpy’ income, the Tax Commissioner has discretion to set out alternative tests that will establish eligibility in specific circumstances. There will also be some tolerance for employers, who in good faith estimate a 30% or 50% all in turnover but actually experience a slightly smaller fall.
JobKeeper Payment clarification.
To be able to claim the JobKeeper payment for an eligible employee, that employee must be paid a minimum of $1,500 income per fortnight, before tax is withheld. This includes:
- Employees who have been stood down without pay after March 1 2020, will receive the full $1,500 before tax, per fortnight.
- Employees who usually earn less than $1,500 a fortnight before tax, are to be ‘topped up to $1,500 per fortnight.
- Employees whose hours have been reduced and now earn less than $1,500 per fortnight, are to be topped up to $1,500 per fortnight.
- Employees who were let go after March 1 who have been re-hired will be eligible.
For employees who earn over $1,500 per fortnight, the businesses payments and obligations will not change. The $1,500 fortnightly subsidy received will be to support their continued employment.
Self-employed and other eligible businesses
- Self-employed taxpayers will be eligible provided they meet certain criteria at the time of applying.
- Director Fees – Only one person in a director capacity may receive the payment and that individual may not receive the payment as an employee.
- Trusts – Trust can receive JobKeeper payments for any eligible employees. where beneficiaries only receive distributions, rather than being paid a wage for work done, only one individual beneficiary can be nominated to receive the JobKeeper Payment.
- Partnership – only one partner can be nominated to receive a JobKeeper Payment along with any eligible employees.
- Company – where an eligible business pays shareholders in the form of dividends, in lieu of a wage, only one shareholder will be eligible to nominate for the JobKeeper Payment
Registering interest
Eligible employers will need to need to register for the scheme in order to receive payments administered by the ATO.
If you have not already registered, please go to https://www.ato.gov.au/general/jobkeeper-payment/. Once you have registered you will receive information and updates from the ATO about how and when to claim the JobKeeper payments.
Are you a small business owner and who needs help navigating the current economic stimulus packages? Contact the Centaur Financial team to discuss what your options are.
Information in this article is sourced from:
https://treasury.gov.au/sites/default/files/2020-04/Fact_sheet_supporting_businesses_0.pdf
https://treasury.gov.au/sites/default/files/2020-04/JobKeeper_frequently_asked_questions_2.pdf
