Further details have now been released giving some clarification around the new JobKeeper Package. There is plenty of information to digest at the moment so here are the key points.
- Online application (not just expression of interest) available through ATO from 20 April to be completed by 26 April with payments commencing first week May
- Determine employee eligibility and provide all employees with a JobKeeper Employee Nomination Notice to be completed & returned to the employer by the end of April
- There is no need to lodge the JobKeeper Employee Nomination Notice, but hold on file
- Employers or their accountants must then apply for JobKeeper payment via the ATO Business Portal from 4 May 2020
- Eligible employers must advise eligible employees in writing that they have been nominated for the JobKeeper Package no later than 7 days after application
- Businesses need to prove a 30% reduction in revenue compared to last year over the test period being any month between March and September 2020; or quarter commencing either April 2020 or July 2020.
- Includes Not-for-profit entities, although lower eligibility of 15% revenue reduction will apply to these entities
- Turnover reduction will be based on GST Turnover and Projected GST Turnover ie. Comparison Turnover = GST Turnover for the comparison period
- An alternative test can be determined and applied by the Commissioner where the above cannot be reasonably applied
- Once qualified there is no need to retest.
There are no further updates around employee eligibility but to recap employees NOT eligible include:
- Employees under 16 years of age
- Casuals with less than 12 months regular service or who was a permanent employee of another employer
- Employees on non-prescribed visas
- Foreign employees (other than New Zealander's on subclass 444 visa)
- Employee nominated for JobKeeper by another Employer
- Paid less than $1500 per fortnight gross
- Were not employed by you at 1 March 2020
Ongoing Eligibility reporting:
- Eligible employee reporting can be completed using a prefilled STP payment report
- Reconfirmation each month that eligible employees have not changed
- Monthly JobKeeper Declaration Report will be the medium to advise on any change in eligible employees
- Every month the employer must report GST turnover for the reporting month & projected GST turnover for the following month; noting that this does not affect turnover test eligibility. It does, however, provide updated information to test the reasonableness of projected turnover at the time of nomination and will be a real-time source of data for audit activity.
Lastly, the JobKeeper Payments will be made in arrears whereby the employee must be paid before the employer is reimbursed and unlike the PAYGW cash flow boost, JobKeeper payments are taxable income in the hands of employers (and employees).
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