JobKeeper Payment – Update 5

The Australian Taxation Office has provided more guidance about the JobKeeper scheme.

Extended Dates for Enrolment & Payment

  • The ATO has extended the time to enrol for the initial JobKeeper periods to 31 May 2020. If you enrol by 31 May, you will still be able to claim for the fortnights in April and May provided you meet all the eligibility requirements for each of those fortnights. This includes having paid your employees by the end date for each fortnight.
  • For the first two fortnights (30 March – 12 April, 13 April – 26 April), the ATO will accept the minimum $1,500 payment for each fortnight has been paid by you even if it has been paid late, provided it is paid by 8 May. If you do not pay your staff by this date, you will not be able to claim JobKeeper for the first two fortnights

Alternative Turnover Tests

  • The ATO have also released a set of Alternative Tests which you may use if you do not satisfy the basic decline in turnover test.
Alternative Test Pre-condition What is the alternative comparison period turnover?
1. Entity is new to business (option 1) The entity commenced business after the relevant comparison period in 2019 The entity’s average turnover since the entity commenced business
2. Entity is new to business (option 2) The entity commenced business after the relevant comparison period in 2019 The entity’s average turnover For the three months immediately before the applicable turnover test period
3. Entity has undertaken disposals, acquisitions and restructures The entity has undertaken a disposal or acquisition of part of their business, or restructure in the business, or multiples or combinations of those The entity’s current GST turnover for the month after the month in which the disposal, acquisition or restructure occurred
4. Entity had a substantial increase in turnover The entity’s turnover has increased by:

  • 50% or more in the 12 months before the turnover test period; or
  • 25% or more in the 6 months before the turnover test period; or
  • 12.5% or more in the 3 months before the turnover test period
The average turnover from the 3 months immediately before the turnover test period
5. Entity affected by drought or other natural disaster The entity was affected by a drought or another natural disaster in the relevant comparison period in 2019 The current GST turnover for the same period in the year immediately preceding the year when the drought or natural disaster was declared rather than 2019
6. Entity has an irregular turnover The entity has a large, irregular variance in its turnover for the quarters ending in the 12 months before the applicable turnover test period. Note, an entity that has regular seasonal variances will not qualify for this alternative test The average turnover from the 12 months immediately before the applicable turnover test period
7. Entity is a sole trader or small partnership with sickness, injury or leave The sole trader or partnership was affected by the sole trader or a partner not working for all or part of the period due to sickness, injury or leave If the relevant comparison period is one month, the current GST turnover for the month immediately after the month in which t he sole trader or partner returned to work If the relevant comparison period is a quarter, the entity multiplies
the current GST turnover for the month immediately after the month in which the sole trader or partner returned to work by three and uses that figure

Service Entities

  • The ATO have also released guidance on groups that use a service entity arrangement. This is where one entity employee staff and hires staff to a related operating entity which derives income from unrelated third parties. Although the ATO have not detailed the specific test, they have indicated the group of entities will be able to use the group’s turnover to calculate if they have suffered a 30% decline in revenue

Finance for Payroll

  • Below a list of major banks Job Keeper hotlines. These have been setup specifically to help small business with the Job Keeper payments:
    • CBA: 13 26 07
    • ANZ: 1800 571 123
    • NAB: 1800 JOBKEEPER (1800 562 533)
    • Westpac: 1300 731 073
    • St George: 1300 730 196
    • Bank of Melbourne: 1300 784 873
    • Bank SA: 1300 669 472
  • We encourage you to reach out to one of the above if you are having difficulties in paying your staff