We have been inundated from business clients with some of the workings of JobKeeper Payment which the government announced on the 30th of March 2020.
Although the legislation has not yet been passed by parliament (expected Wednesday 8 April 2020), yesterday the government released further clarification on its workings, which we thought it prudent to provide to our clients.
Details below may change subject to the sitting of parliament on Wednesday, nevertheless, we believe it is important that we inform you of the clarification immediately and should there be a change to the details below we will advise you accordingly.
JOBKEEPER PAYMENT SCHEME:
- Employers must have paid their eligible employees before they are entitled to receive the JobKeeper Payment for those eligible employees – (including employees stood down with no pay).
- JobKeeper Payments are paid in respect of each eligible employee who was employed at 1 March 2020 and is currently employed by the business (including those who are stood down or re-hired).
- Eligible employee is an employee who:
- is currently employed by the eligible employer (including those stood down or re-hired);
- is a full-time or part-time employee, or a casual employed on a regular and systematic basis for longer than 12 months as at 1 March 2020;
- was aged 16 years or older at 1 March 2020;
- was an Australian citizen, the holder of a permanent visa, or a Special Category (Subclass 444) Visa Holder at 1 March 2020;
- was a resident for Australian tax purposes on 1 March 2020; and
- is not in receipt of a JobKeeper Payment from another employer.
- The ATO will utilise your Single Touch Payroll (STP) reports for JobKeeper administration.
- If you are not currently using STP there will be a manual process provided by the ATO.
- JobKeeper Payments are determined by the ATO fortnightly – first period is 30/3/20 to 12/4/20.
- The ATO will pay JobKeeper Payments monthly in arrears – from first week of May 2020.
- Business not in operation for 12 months may have ATO discretion to satisfy decrease of 30% in turnover with provision of additional information.
- Eligible employees must receive at least $1500 (gross) per fortnight from their employer.
- Employers can back-pay stood-down employees to 30 March 2020 to satisfy JobKeeper Payment Scheme.
- Government expects that employers with cash-flow difficulties to seek increase credit to satisfy JobKeeper Payment Scheme.
- No super to be made on JobKeeper Payment.
- South Australian government is currently amending Payroll Tax legislation to ensure no Payroll Tax is applicable on JobKeeper Payment.
- A change of business ownership within the last 12 months should not affect a casual employee being eligible if the employee has been at the business for more than 12 months.
- JobKeeper Payment is assessable income and is not income tested – eligible employees can still earn income from other sources but can only receive one form of JobKeeper Payment from one employer.
- JobKeeper Payment may be paid to an employee in cash or as a fringe benefit or extra superannuation contribution where the employee and employer agree.
- Self-employed will be eligible for JobKeeper Payment subject to satisfying
- estimate their turnover has or will fall by 30 per cent or more;
- had an ABN on or before 12 March 2020, and
- – either had an amount included in its assessable income for the 2018-19 year and it was included in their income tax return lodged on or before 12 March 2020 (or such later time as allowed by the Commissioner), or
- – made a supply during the period 1 July 2018 to 12 March 2020 and provided this information to the Commissioner on or before 12 March 2020 (or such later time as allowed by the Commissioner);
- were actively engaged in the business;
- are not entitled to another JobKeeper Payment (either a nominated business participant of another business or as an eligible employee);
- were aged at least 16 years of age as at 1 March 2020; and
- were an Australian citizen, the holder of a permanent visa, or a Special Category (Subclass 444) Visa Holder at 1 March 2020.
- Business is a Partnership – Only one partner in a partnership can be nominated to receive JobKeeper Payment.
- Business is a Family Trust – only one individual beneficiary can be nominated to receive JobKeeper Payment.
- Director Fees – Business is a Company – only one person in a director capacity may receive JobKeeper Payment and that person may not receive the JobKeeper Payment as an employee.
- Dividend Payments – Business is a company – only one shareholder may be nominated to receive JobKeeper Payment.
- Employers that receive JobKeeper Payment will not be eligible for apprentice and trainee wage subsidy from 1 April 2020.
- JobKeeper Payment will be included in Child Support Assessment.
We trust the above provides further clarity on the JobKeeper Payment Scheme and should you have any queries please do not hesitate to contact our office.
Preferably in the first instance by email as this is the most efficient and a response will be provided as prompt as possible and if necessary a follow up by telephone is welcomed.
We provide a link for JobKeeper Payment – Frequently Asked Questions for your reference.
We also expect the government to shortly issue a mandatory code with respect to commercial Lease Payments with both landlord and tenant hopefully having an equitable framework to work with.
As soon as the mandatory code is released we will provide an update.