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Jobkeeper

Disclaimer
This information is intended to act as a guide only and does not consider the varying circumstances of each individual. For more assistance, it is advised that individuals seek official government material or speak to their accountant.

JobKeeper Payment

 

This payment provides eligible employees (or sole traders with no employees) with $1500 per fortnight. This payment has been extended to March 2021. The payment rate will be reduced and a lower payment rate will be introduced for those who work fewer hours.

 

Which employers are eligible to receive payments?

  • On 1 March 2020, you carried on a business in Australia or were either
    • A not-for-profit organisation that pursued your objectives principally in Australia, or
    • You employed at least one eligible employee on 1 March 2020.
    • Your eligible employees are currently employed by your business for the fortnights you claim for (including those who are stood down or re-hired).
    • Your business has faced a
      • 30% fall in turnover (for an aggregated turnover of $1 billion or less)

Find more information here: https://www.ato.gov.au/general/jobkeeper-payment/employers/eligible-employers/

 

How to calculate your fall in turnover:

To work out your fall in turnover, you can compare either:

  • GST turnover for March 2020 with GST turnover for March 2019
  • projected GST turnover for April 2020 with GST turnover for April 2019
  • projected GST turnover for the quarter starting April 2020 with GST turnover for the quarter starting April 2019.

Find more information here: https://www.ato.gov.au/General/JobKeeper-Payment/In-detail/JobKeeper-tests/Applying-the-turnover-test/

 

Eligibility for sole traders:

Sole traders can be eligible for the JobKeeper payment if their business has experienced a downturn according to the eligibility criteria and satisfy the other conditions for eligibility. If you are eligible, you can claim one $1,500 JobKeeper payment per fortnight for yourself as the eligible business participant.

The ATO considers you a sole trader if you:

  • use your individual tax file number when lodging your income tax return;
  • report all your income in your individual tax return, using the section for business items to show your business income and expenses (there is no separate business tax return for sole traders);
  • use your ABN for all your business dealings;
  • are registered for Goods and Services Tax (GST);
  • pay tax at the same income tax rates as individual taxpayers;
  • may claim a deduction for any personal super contributions you make after notifying your fund.

Find more information here: https://www.ato.gov.au/General/JobKeeper-Payment/Sole-traders/

 

Which employees are eligible to receive payments?

 

Your employee is eligible under the JobKeeper Payment scheme if they:

  • are employed by you (including those stood down or re-hired)
  • were, at 1 March 2020, either a
    • full-time, part-time or fixed-term employee, and not a casual employee
    • long-term casual employee (employed on a regular and systematic basis for at least 12 months) and not a permanent employee of any other employer.
  • on 1 March 2020 were 18 years or older
  • were an Australian resident at 1 March 2020 under the Social Security Act 1991, which requires they reside in Australia and are one of: an Australian citizen, the holder of a permanent visa, or a Protected Special Category Visa Holder. Your employee can also be an Australian tax resident who is a Special Category (Subclass 444) Visa Holder. Employees who aren't permanent residents of Australia must notify you of their visa status to allow you to determine if they're eligible for JobKeeper payments.
  • Didn't receive any of these payments during the JobKeeper fortnight:
    • government parental leave or Dad and Partner Pay
    • a payment in accordance with Australian workers compensation law for an individual’s total incapacity for work

You cannot claim for any employees who:

  • were first employed by you after 1 March 2020
  • left your employment before 1 March 2020
  • have been, or have agreed to be, nominated by another employer.
  • if you are an approved provider of child-care services, have ordinary duties relating principally to the operation of those services for a JobKeeper fortnight that commences on or after 20 July 2020.

Find more information here: https://www.ato.gov.au/general/jobkeeper-payment/employers/your-eligible-employees/

 

Taxi Drivers, Operators, License Owners (or Holders) and Owners

Taxi drivers, operators and owners who are sole traders are likely to meet the eligibility requirement of their turnover having been reduced by more than 30% relative to a comparable period a year ago.

Taxi drivers and operators will typically meet the eligibility requirements for enrolment in JobKeeper as an eligible business participant. As taxi drivers and operators, they must be registered for GST, must have ABN’s and should have been reporting income and taxable supplies through their BAS.

The fact that a taxi driver or operator was carrying on their business at 1 March 2020, is relevant to eligibility. The eligibility does not depend on how much or how little a taxi driver has driven. It does not matter whether the business operates as a sole trader, partnership, trust or company, however, taxi drivers and operators must pay attention to:

  1. Their business satisfies the turnover threshold (e.g. more than a 30% decline)
  2. They meet the requisite residency and/or visa status criteria for eligibility.

Taxi license Owners or Holders

Like taxi drivers and taxi operators, their businesses are for-profit and will likely see a 30% (or more) decline in turnover. When their businesses comprise leasing taxi licences to taxi operators and/or taxi drivers, the leasing constitutes a taxable supply, and in collection with their respective taxi operators and taxi drivers, they are co-adventurers in businesses providing taxi services for profit. Accordingly, the usual practice for taxi licence owners is to have an ABN, be registered for GST, and be reporting income and taxable supplies routinely through their BAS.

Importantly, taxi licence owners’ businesses must be able to be distinguished from passive income enterprises where they simply lease out their licence for a set amount and do not actively participate in the business activity.

Taxi license owners or holders should pay particular attention to:

  1. Their business satisfies the turnover threshold (e.g. more than a 30% decline)
  2. They meet the requisite residency and/or visa status criteria for eligibility.
  3. They have been actively engaged in their business.

 

How to Apply for the JobKeeper Payment

 

Step 1. Enrol for the payment

  • Log into to the Business Portal using myGovID. https://bp.ato.gov.au/
  • To enrol, you will need to confirm:
    • business has experienced a fall in turnover
    • expected number of eligible employees (if you have them)
    • an eligible business participant, if you are enrolling one
    • bank and contact details for receiving JobKeeper payments
  • Notify all your eligible employees that you have nominated them. https://www.ato.gov.au/Forms/JobKeeper-payment---employee-nomination-notice/
  • You will need to enrol before you can move to Step 2 and identify any employees you are claiming for.

Step 2. Identify and maintain eligible employees

  • You or your registered tax or BAS agent need to identify each person that you will claim the JobKeeper Payment for. You only need to identify your eligible employees and eligible business participant once.
  • If you have an eligible business participant, remember not to include them as an employee. You can add them in the Business Portal.

Step 3. Make a business monthly declaration

  • You must do this between the 1st to the 14th day of each month, to receive reimbursements for the JobKeeper payments you made to your eligible employees in the previous month.
  • For example, the business monthly declaration for the JobKeeper payments you paid your employees in May needs to be completed by 14 June.

To make your business declaration each month:

  • Log into the Business Portal using myGovID. https://bp.ato.gov.au/
  • Reconfirm your eligible employees and business participant if you have them.
  • Provide your business' GST turnover for the month you are declaring and following month's projected month GST turnover

Find more information here: https://www.ato.gov.au/General/JobKeeper-Payment/Employers/Enrol-for-the-JobKeeper-payment/

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