As your tax agent, we will be able to enrol you for JobKeeper via the ATO Portal from 20/04/2020 (if you have the Business Portal, you can register yourself from 20/04/2020). We then need to apply for the JobKeeper payments via the ATO Portal from 04/05/2020 to 31/05/2020.
One of the big questions on JobKeeper eligibility has finally been answered – how do I prove my turnover has reduced by at least 30%?
There are two ways for entities to satisfy this requirement: the basic test and the alternative test.
The basic test compares the GST turnover of any single month from March to September 2020, or the quarters that start on 1 April 2020 or 1 July 2020, with the corresponding period in 2019.
For example, a business can make the comparison by comparing the whole of the month of March 2020 with March 2019, or by comparing the quarter beginning on 1 April 2020 with the quarter beginning on 1 April 2019.
The alternative test applies where there is not an appropriate relevant comparison period in 2019. According to the Treasury, this might be the case for a new business or a business that made a major business acquisition in 2020. This alternative decline in turnover test will be determined by the Commissioner of Taxation.
Once a business satisfies the decline in turnover test, it does not need to retest its turnover in later months.
Another important point is around eligible employees. Once an employer decides to participate in the JobKeeper scheme, they must ensure that all of their eligible employees are covered by it.
This includes all eligible employees who are undertaking work for the employer or have been stood down. The employer cannot select which eligible employees will participate in the scheme.
If employers do not continue to pay their employees for each pay period, they will cease to qualify for the JobKeeper payment.
You need to re-start or continue to pay your eligible employees at least $1,500 a fortnight in line with your existing pay cycle through your existing payroll solution. You can make two fortnightly payments of at least $1,500 per fortnight before the end of April, or a combined payment of at least $3,000 before the end of April.
Before you enrol to receive JobKeeper payments, you need to notify each eligible employee that you intend to nominate them as eligible employees under the JobKeeper scheme. You must tell those employees that you have nominated them as an eligible employee to claim the JobKeeper payment. They must agree to be nominated by you by completing the JobKeeper employee nomination notice and returning it to you for your records.
You can read our full update here