JobKeeper Package –

How to apply and the steps you need to take

Now that the government have approved the Jobkeeper payment I am providing you with some information if you are an employee, and some steps you need to take now if you operate a business.

Depending on your employment or business structure, the following links provide detailed information from the Government, which we have copied the more relevant sections, questions and different business structures and noted these below, for your reading as well as the links below with more information:

• Frequently Asked Questions
• Fact Sheet for Employers
• Fact Sheet for Employees

REGISTER YOUR BUSINESS FOR JOBKEEPER PAYMENTS

If you operate a business, you will need to follow these steps to be set up for JobKeeper Payments:

HOW TO REGISTER:  

  REGISTER HERE: https://www.ato.gov.au/general/gen/jobkeeper-payment/

1. Complete your business ABN details on the jobkeeper link above (do this now – it will only take a minute)
2. Even if you feel your business turnover/income won’t reduce by 30%, we would still recommend in registering for it.
3. Early May – You need to provide information to the ATO, if you feel you are under the 70% on  turnover for April (We have not been told exactly what this information will be, or how to submit it, which hopefully over the coming weeks, we can share this information once the government knows).
4. This will need to be done in each of the following six months that this runs for.

IS MY BUSINESS OR EMPLOYER ELIGIBLE?

Employers and Businesses (including not-for-profits) will be eligible for the subsidy if:

• their business has a turnover of less than $1 billion and estimate their turnover has fallen or will likely fall by 30 per cent or more; or
• their business has a turnover of $1 billion or more and estimate their turnover has fallen or will likely fall by 50 per cent or more; or
• For charities registered with the Australian Charities and Not-for-profits Commission (ACNC), they will be eligible for the subsidy if they estimate their turnover has fallen or will likely fall by 15 per cent or more relative to a comparable period.
• 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).

CALCULATING YOUR BUSINESS TURNOVER:

TURNOVER COMPARISON

To establish that a business has faced or is likely to face a 30 per cent or more or 50 per cent or more fall in turnover, most businesses would be expected to establish that their turnover has fallen in the relevant month or quarter (depending on the Business Activity Statement reporting period of that business) relative to their turnover in a corresponding period a year earlier.

MY BUSINESS HAS ONLY JUST STARTED OR MY BUSINESS HAS “LUMPY” INCOME. HOW CAN I SELF-ASSESS THAT MY TURNOVER HAS FALLEN 30 PER CENT?

Where a business was not in operation a year earlier, or where their turnover a year earlier was not representative of their usual or average turnover, (e.g. because there was a large interim acquisition, they were newly established, were scaling up, or their turnover is typically highly variable), the Tax Commissioner will have discretion to consider additional information that the business can provide to establish that they have been adversely affected by the impacts of the Coronavirus.

The Tax Commissioner will also have discretion to set out alternative tests that would establish eligibility in specific circumstances (e.g. eligibility may be established as soon as a business ceases or significantly curtails its operations). There will be some tolerance where employers, in good faith, estimate a 30 per cent or more or 50 per cent or more fall in turnover but actually experience a slightly smaller fall.

Information for – PARTNERSHIPS

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.  

 Information for – TRUSTS

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.

Information for – COMPANIES

I AM COMPANY RUN BUSINESS AND PAID AS A SHAREHOLDER. AM I ELIGIBLE?

An eligible business that pays shareholders that provide labour in the form of dividends will only be able to nominate one shareholder to receive the JobKeeper Payment

Information for – EMPLOYEES

HOW DO I KNOW IF I AM AN ELIGIBLE EMPLOYEE FOR THE JOBKEEPER PAYMENT? 

Eligible employees are employees who:

• are currently employed by the eligible employer (including those stood down or re-         hired);
• are 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;
• were aged 16 years or older at 1 March 2020;
• were an Australian citizen, the holder of a permanent visa, or a Special Category           (Subclass 444) Visa Holder at 1 March 2020;
• were a resident for Australian tax purposes on 1 March 2020; and
• are not in receipt of a JobKeeper Payment from another employer.

 I HAVE BEEN STOOD DOWN. HOW MUCH WILL I RECEIVE?

If your employer is eligible for the JobKeeper Payment, and they elect to participate, your employer will receive $1,500 per fortnight for each eligible employee. They will be required to pay you $1,500 (before tax) per fortnight. The payment will be treated as income, and so will have tax withheld by your employer on your behalf.

 I HAVE TAKEN UP OTHER WORK AFTER BEING STOOD DOWN. WILL I STILL RECEIVE A PAYMENT?

Yes. The JobKeeper Payment is not income-tested, so you may earn additional income without your payment being affected as long as you are eligible and maintain your employment (including being stood down) with your JobKeeper-eligible employer. However, you can only receive the JobKeeper payment from one employer, your primary employer.

 I WAS EMPLOYED ON 1 MARCH 2020, BUT I WAS STOOD DOWN OR LET GO AND I HAVE APPLIED FOR OR AM CURRENTLY RECEIVING INCOME SUPPORT (SUCH AS THE JOBSEEKER PAYMENT) FROM SERVICES AUSTRALIA. WILL I RECEIVE THE JOBKEEPER PAYMENT?

You will be eligible for the JobKeeper Payment if you have been stood down from work, or if your former employer re-hires you. However, the JobKeeper Payment is treated as ordinary income for the purposes of social security payments. You must therefore report your change in circumstances to Services Australia if you are receiving income support, and this is likely to make you ineligible for the JobSeeker Payment or other income support payments or eligible at a reduced rate.

 I AM ON A FIXED TERM CONTRACT WITH MY EMPLOYER. AM I ELIGIBLE TO RECEIVE THE PAYMENT?

Fixed term contractors are eligible for the payment if you were employed at 1 March 2020 and meet the other eligibility criteria for the JobKeeper Payment.

 I HAVE MULTIPLE EMPLOYERS. WILL I RECEIVE MULTIPLE PAYMENTS?

No. Every employee is only able to receive one payment from one employer, their primary employer. Your employers who have elected to participate in the JobKeeper Payment scheme may ask you to indicate whether they are your primary employer. If you are employed by more than one employer, you should contact your employers and indicate to them which is your primary employer.

The ATO will provide guidance on how to determine your primary employer. You can continue to receive non-JobKeeper supported income from your non-primary employer.

We will keep you updated as further information becomes available to us. Please get in touch with us and let us know if you need further help with this or any more information relating to your own situation.

Brent Delahey & Pat Hoey