Not rendering correctly? View this email as a web page here.

JobKeeper Scheme ~ 7 Alternative
Eligibility tests explained and ATO's extension of initial JobKeeper Payment deadline


The Government has released a legislative instrument outlining seven alternative eligibility tests for its JobKeeper subsidy payments.

When the JobKeeper package was originally announced, under the basic eligibility test the Government said businesses would be eligible if they have seen a 30% decline in turnover due to COVID-19. Businesses with annual turnover of $1 billion or more would have to prove a 50% decline. This revenue drop would be calculated based on a comparative period 12 months ago.

However, for many businesses, including startups, high-growth businesses, or businesses affected by drought this time last year and many others, a year-on-year comparison didn't work. For example, if a business is less than 12 months old it just wouldn't have revenue figures from a year ago.

In response to that, Treasury released new rules that outline the scenarios in which a business might be able to apply alternative turnover tests, and what those tests will be.

They cover new businesses, high-growth businesses, sole traders who have taken leave, and more. Unfortunately, the one group that is still not covered even in these additional rules is those businesses that are pre-revenue and therefore cannot prove a drop in turnover.

In order to provide more time and ensure the scheme's efficiency – ATO also extended initial JobKeeper payment deadline for employers who wish to enrol for the first two JobKeeper fortnights to 31 May, an extension from 30 April (more details below).

To manage the ongoing technical issues for all of our clients including the JobKeeper eligibility and payment plus other stimulus measures and the Fair Work changes Azure Group have established the following two centres of excellence.

  • COVID-19 Stimulus Centre of Excellence; and
  • Fair Work Centre of Excellence.

Each of the above centres of excellence has a dedicated team of technical specialists. These teams will provide technical responses to you and will also be providing leadership and training to the rest of Azure Group on their respective areas of focus.

If you have any specific questions about these measures please either contact your existing Azure Group advisor who will liaise with our centres of excellence or contact covid19queries@azuregroup.com.au directly.
jobkeeper

 

JobKeeper Scheme ~ 7 Alternative
Eligibility tests


In what circumstances can you use an alternative turnover test?

Circumstances where an alternative test applies:

  • the entity commenced business after the relevant comparison period (the business did not exist in that period)

  • the entity acquired or disposed of part of the business after the relevant comparison period (the business is not the same business in that period as it is now)

  • the entity undertook a restructure after the relevant comparison period (the business is not the same business in that period as it is now)

  • the entity’s turnover substantially increased by:

     50% or more in the 12 months immediately before the applicable turnover test period; or
     25% or more in the 6 months immediately before the applicable turnover test period, or
     12.5% or more in the 3 months immediately before the applicable turnover test period.

  •  the entity was affected by drought or other declared natural disaster during the relevant comparison period

  • the entity has a large irregular variance in their turnover for the quarters ending in the 12 months before the applicable turnover test period, excluding entities that have cyclical or regular seasonal variance in their turnover, or

  • the entity is a sole trader or small partnership where sickness, injury or leave have impacted an individual’s ability to work which has affected turnover.

For more details, check ATO's Alternative Decline in Turnover Test Rules 2020.
jobkeeper extension (1)

 

Extension of time to enrol for the JobKeeper Scheme


In order to provide more time and ensure the scheme’s efficiency, the ATO announced over the weekend that the Commissioner of Taxation will now allow businesses to enrol for the first two JobKeeper fortnights by 31 May, an extension from 30 April.

'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,' the ATO’s notice reads.

Crucially, the ATO also clarified that for the first two fortnights — 30 March to 12 April and 13 April to 26 April — it will now accept the late payments of the minimum of $1,500 per fortnight, provided it is paid by 8 May 2020. If you do not pay your staff by this date, you will not be able to claim JobKeeper for the first two fortnights.

The ATO’s updated guidance on enrolment date and payment date can be viewed here.

 

If more information becomes available we will continue to keep you updated on this matter.  

GET IN TOUCH
Connect with us
Thanks for reading!