JobKeeper Update

 

Parliament met yesterday to further the progress of JobKeeper….

One of the main questions for business owners is: What do I need to do now to ensure I receive the JobKeeper payment in the first week of May?

Answer: nothing at the moment… this is assuming you are one of the 700,000 businesses that has registered their interest with the ATO (can be done here).

Ultimately; this legislation is being prepared at such a speed, the government is having to put this together ‘on the fly’.

Processes and systems to facilitate these payments do not currently exist. What we do know is the payments are due to be paid at the beginning of May; which means we will have answers in the next 21 days, before 30 April.

In the meantime, as we wait to see what the next steps are; we have compiled below a list of what has been the most asked Questions, along with corresponding Answers to assist:

  • WHEN WILL I RECEIVE THE FIRST PAYMENT?
    • The first payments by the ATO will be received by employers in the first week of May.
  • WHEN WILL THE JOBKEEPER PAYMENT COMMENCE?
    • The JobKeeper Payment will be available from 30 March 2020.
  • HOW LONG WILL THE JOBKEEPER PAYMENT LAST FOR?
    • The JobKeeper Payment will be available for the period until 27 September 2020.
  • HOW OFTEN WILL THESE PAYMENTS BE MADE?
    • The payments will be made by the ATO monthly in arrears.
  • IS THIS TURNOVER TEST RELATED TO ONLY TURNOVER IN AUSTRALIA, OR DOES IT INCLUDE OVERSEAS OPERATIONS AS WELL?
    • Under the GST law, only Australian based sales are included and therefore, only Australian based turnover is relevant. A decline in overseas operations will not be counted in the turnover test.
  • I LET MY EMPLOYEES GO AFTER 1 MARCH 2020. IF I RE-HIRE THEM, AM I ELIGIBLE TO RECEIVE THE PAYMENT?
    • Yes. You can receive the payment if you re-hire any eligible employees you had at 1 March 2020. You can receive the payment even if you then need to immediately stand them down, so long as they remain employed.
  • WILL MY EMPLOYER PAY SUPERANNUATION ON THE JOBKEEPER PAYMENT?
    • No superannuation guarantee payments are required to be paid on any additional payment made because of the JobKeeper Payment.
  • I AM SELF-EMPLOYED. AM I ELIGIBLE FOR THE PAYMENT?
    • Yes. People who are self-employed will be eligible for the payment provided, at the time of applying
  • CAN TRUSTS RECEIVE THE JOBKEEPER PAYMENT?
    • Trusts can receive JobKeeper payments for any eligible employees. Where beneficiaries of a trust only receive distributions, rather than being paid salary and wages for work done, one individual beneficiary (that is, not a corporate beneficiary) can be nominated to receive the JobKeeper Payment.
  • I AM A COMPANY DIRECTOR THAT RECEIVES DIRECTOR FEES. AM I ELIGIBLE?
    • An eligible business can nominate only one director to receive the payment, as well as any eligible employees. Only one person in a director capacity may receive the payment and that individual may not receive the payment as an employee.
  • MY BUSINESS IS A PARTNERSHIP. CAN EACH PARTNER RECEIVE A JOBKEEPER PAYMENT?
    • No. Only one partner can be nominated to receive a JobKeeper Payment along with any eligible employees, noting a partner cannot be an employee.
  • I RECEIVE RENTAL INCOME AS A LANDLORD BUT AM NOT REGISTERED AS A BUSINESS. AM I ELIGIBLE?
    • No. Only businesses with employees or self-employed people are eligible for the JobKeeper Payment.

 

To read the full list of the government’s JobKeeper FAQ’s click here.

Please contact the office if you wish to discuss further.