Here are a number of the commonly asked questions that Tax & Super Australia have received regarding the JobKeeper subsidy.
- April Payroll
- Timing of payment
- Never Lodged a BAS
- BASs and Tax Returns are Late
- More than One Business in a Family
- Late Entry Into the JobKeeper Scheme
- Sole Trader Gets a Job
- Start Up Business
- Apprentices and JobKeeper
- Employees Paid Less than $1,500 per fortnight
- Active participation in a Business
- Consolidated Groups
- Restructure of Business
- Trust Beneficiary Placed on the Payroll
- Personal Services Income
- Poor Payroll Records
- Business Branches
- Cancellation of Election
- Downturn Estimation Error
- Passive Income
- Cash Flow Boost and JobKeeper
- Are employees who have returned from maternity leave eligible for JobKeeper assistance, even if there is no actual work for the employee to do?
- Is an employee who has been with the company for more than 3 years and works 3 hours a week or 6 hours a fortnight eligible for JobKeeper assistance?
- Is a casual employee who has been with the organisation more than one year, but opted not to work due to COVID-19, eligible for JobKeeker assistance?”
- Is a sole trader with no employees eligible for JobSeeker, JobKeeper and the Cash Flow Boost?
- How will an employer who does not have STP apply for JobKeeper assistance?
- If a subcontractor satisfies the definition of employee but invoices for his services, can a business apply for JobKeeper assistance for that subcontractor?
- If my company earned $5,000 in April 2019 but in April 2020, it has zero income, is my decline in turnover 30% or more?
- If a business does not satisfy the decline in turnover test at the start of the JobKeeper scheme, but does satisfy the test in a later test period, can the business apply for JobKeeper assistance from that later period?
- Once an entity satisfies the decline in turnover test does it need to retest its turnover in later months?
- If a casual reaches 12 months service in April, can they qualify for the JobKeeper then?
- If an employer stands down all employees, can some be paid for hours they work while not working their regular hours. It seems inequitable if all employees are paid at least JobKeeper, but some will be asked to work.
- Is the decline in turnover test calculated on a cash or accruals basis? Does the employer get to pick which to use or does it depend on how you lodged your last tax return or GST reporting basis?
- Is an “eligible business participant” required to be paid a minimum of $1,500 per JobKeeper Fortnight to be eligible for JobKeeper assistance?
- Are the non-employee owners/operators of start-up businesses eligible for JobKeeper assistance?
- What if the entity’s pay period does not match the JobKeeper fortnight?
- Are Government schools eligible for JobKeeper assistance?
- What is the situation for employees that were stood down?
- If an employer did not pay wages and reported nothing on STP for the month of April, will the employer get JobKeeper payments for the two April fortnights?
- What is the situation for groups where individual group members are on different BAS cycles? On what basis is the decline in turnover test conducted?
- How is the decline in turnover determined where one ABN is used for multiple business?
- Can an employer choose when to be apply for the JobKeeper scheme?
- Are any of these tests limited or not available to Significant Global Entities?
- Are the JobKeeper payments assessable income to the employer?
- What is the situation with PAYGW obligations during the JobKeeper scheme period?
- What is the process for employers to elect to join JobKeeper?
I have missed paying some of my employees the
minimum $1,500 in the first JobKeeper fortnight. Can I still apply for
JobKeeper for that first fortnight?
Yes. The information that the ATO has released states that for the first two JobKeeper fortnights, it will accept the minimum $1,500 payment for each fortnight has been paid by an employer even if it has been paid late. However, the amounts must be paid by the end of April. This means that a combined payment of at least $3,000 must be made by the end of April.
The Commissioner is given the power to treat a particular event that happened in a fortnight as having happened in another fortnight, if it is reasonable to do so in the opinion of the Commissioner.
There is a transitional extension on the ability of an employer to elect to be part of JobKeeper. For an entitlement arising in the first or second JobKeeper fortnight, the election to be part of JobKeeper can be lodged by the end of the second JobKeeper fortnight (26 April).
If there is a regular period for which an employer pays its employees and that period is longer than a fortnight, then the payment is allocated to the JobKeeper fortnights in a reasonable manner.
Timing of payment
Does a business have to wait until it lodges its BAS before it gets JobKeeper payments from the ATO?
No. The rules state that the Commissioner must pay the JobKeeper payment no later than the later of:
- 14 days after the end of the calendar month in which the fortnight ends; and
- 14 days after the Commissioner is satisfied that the requirements of JobKeeper have been satisfied. The Commissioner has discretion to conclude that the requirements have been satisfied in certain circumstances.
Never Lodged a BAS
A sole trader has an ABN but has never lodged a BAS because it is not registered for GST and does not deduct PAYG withholding. Can the entity claim JobKeeper for the owner of the business?
First, it should be remembered that only one JobKeeper payment can be claimed for one individual. If the individual has another source of income, other than the business, the JobKeeper payment may have been claimed for the individual by another entity.
It will be assumed that the entity had an ABN on 12 March 2020.
The fact that a business has not lodged a BAS does not prevent it from satisfying the decline in turnover test. This is due to the way that the “projected GST turnover” and “current GST turnover” have been defined. The ATO also says “The amounts included in calculating projected GST turnover and current GST turnover are the same regardless of whether you are currently GST registered”.
On the assumption that the individual satisfies all of the requirements, including being actively engaged in the business, there can be a claim for JobKeeper provided the individual has lodged his/her income tax return for the year ended 30 June 2019 that includes assessable income from the business. The tax return would need to have been lodged by 12 March 2020, or a later time allowed by the commissioner. We do not know whether the commissioner will allow a later time in relation to the JobKeeper scheme. There are statements in the ATO information concerning the cash flow boost that if a tax return is lodged late due to an approved deferral with the ATO, the ATO will accept the late lodgement for the purposes of the cash flow boost. We do not know whether the ATO will adopt the same attitude for the JobKeeper scheme.
BASs and Tax Returns are Late
What if a client is behind several quarters in relation to the lodgement of BASs and is also behind with the lodgement of income tax returns? Is that a problem with JobKeeper?
This depends on whether the client is claiming for an eligible employee or whether the client is claiming for a non-employee business participant.
If an employer is claiming for an employee, the JobKeeper rules do not have any reference to notifying the Commissioner of assessable income or GST taxable supplies. The projected GST turnover and current GST turnover, for the purposes of the decline in turnover test, are based on the value of supplies made, or likely to be made in a period. That is a question of fact and does not rely on what has, or has not, been disclosed in a BAS or income tax return. However, in the practical operation of the JobKeeper scheme, the ATO is likely to check information given to it against lodged BASs and income tax returns. If those documents haven’t been lodged, we do not know what the ATO will do. It can be expected that the ATO will question the information provided to justify that there is a decline in turnover.
If the client is claiming for a non-employee business participant (e.g. a partner in a partnership or a beneficiary in a trust) the lodgement of BASs and income tax returns is made specifically relevant by the integrity rules.
These require (among other things) that either:
- An amount was included in the entity’s assessable income for the 2018-19 income year in relation to it carrying on a business and the Commissioner had notice on or before 12 March 2020 (or a later time allowed by the Commissioner) that the amount should be so included; or
- The entity made a taxable supply in a tax
period that applied to it that started on or after 1 July 2018 and ended
before 12 March 2020.Further, the Commissioner must have had notice on or
before 12 March 2020 (or a later time allowed by the Commissioner) that
the entity had made the taxable supply.
- It should be noted that for the purposes of this test the entity is assumed to be registered for GST (even if it isn’t); and
- All supplies are assumed to be taxable supplies (i.e. not GST-free nor input taxed); and
More than One Business in a Family
If Mum has her own business and Dad has his own business, what happens under JobSeeker?
In most situations, the fact that related people own different businesses will not affect the applicability of JobKeeper to either business. If Mum is not an employee of her business and Dad is not an employee of his business, they will able to claim JobKeeper payments in relation to their own businesses for themselves, provided all other relevant conditions have been satisfied.
If an individual operates multiple businesses, when determining whether the decline in turnover test has been satisfied, can the individual satisfy that for just one business or are all businesses involved in the calculation?
The analysis needs to be done by including the supplies of all businesses. This is due to the wording of the definition of “projected GST turnover” in the GST law. Projected GST turnover is “the sum of values of all the supplies that you have made, or are likely to make, during that period…”. There is no distinction between the enterprises that the individual operates. ATO information has confirmed this.
Late Entry Into the JobKeeper Scheme
What happens if a business is unsure about whether it will have a 30% decline in turnover for the June 2020 quarter in April and May 2020, but realises that it will have such a decline on say, 10 June 2020? Can it still enter the JobKeeper scheme? Can it (legally) back-date its involvement to 30 March 2020?
The JobKeeper scheme operates prospectively only (except for transitional provisions for the first two fortnights). The scheme operates in respect of JobKeeper fortnights. If an employer comes to the conclusion on 10 June 2020 that it is going to have a greater than 30% decline in turnover and satisfies all of the requirements of the JobKeeper scheme, it will be entitled to JobKeeper payments for the JobKeeper fortnight ending 21 June 2020 and following.
Sole Trader Gets a Job
A business owner has ceased trading for a time due the coronavirus. He is not employed by his business. On 3 April 2020, he decides to get a job to supplement his income but will quit his job and return to his business when the economy recovers. Can he get the JobKeeper payment?
If he wants to be treated as an “eligible business participant” in relation to his business, he will need to continue to be actively engaged in the business. Will his new job commitments enable him to do this? This is a question of fact. The policy is that the individual will try to keep running his business, if that is permitted.
Note that he will not be able to obtain the JobKeeper payment from his new employer because he was not employed as 1 March 2020 with that employer. Also, the business owner will not be open to claim the JobKeeper payment in relation to his own business if he is employed as a full-time or part-time employee with his new employer. The JobKeeper payment may only be claimed by his own business if he is a casual employee of this employer.
Start Up Business
A business commenced in October 2019. How is the decline in turnover test calculated for this business?
The business will have to rely on the alternative decline in turnover test(s) that will be issued, by legislative instrument, by the Commissioner of Taxation. If the Commissioner of Taxation makes a legislative instrument, it will apply to a certain class of entities. The ATO information nominates the commencement of a new business as an event where it may be appropriate to make a legislative instrument. At the time of writing, none have been issued.
Apprentices and JobKeeper
Is a business that receives the 50% wage subsidy for apprentices and trainees also eligible for JobKeeper in relation to the apprentice or trainee?
(From Treasury information) “Eligible small businesses can receive the 50% wage subsidy for apprentices and trainees in the Supporting Apprentices and Trainees measure from 1 January to 31 March 2020, and the JobKeeper Payment. Where small businesses receive the JobKeeper Payment, they are not eligible to receive the apprentice and trainee wage subsidy from 1 April 2020 onwards”. It is noted that this is not referred in the JobKeeper rules.
Employees Paid Less than $1,500 per fortnight
Normally, a business pays one of its employees $800 per fortnight. What must it do under JobKeeper? If the business pays them $1,500, can the business ask the employee to work extra hours or assume other duties?
If the employee is eligible, the employer must pay the employee $1,500 per fortnight, before tax, while JobKeeper is in operation. Further, it is the intention of the Government to require the employer to contribute 9.5% of $800 to the employee’s superannuation fund. The changes needed to the superannuation law requiring this have not yet been enacted.
Tax & Super Australia does not comment on employment law requirements. Please see the amendments to the Fair Work Act that are part of the JobKeeper package.
Active participation in a Business
Mum and Dad are in partnership. Mum does a lot less work in the partnership than Dad. Neither of them are employed by the partnership. Dad is covered by JobKeeper for another business. Can I make a JobKeeper claim for Mum?
Yes, provided Mum can satisfy all of the conditions. One of those conditions is that Mum is “actively engaged in the business”. This is a question of fact. There is currently no guidance on what this term means from the ATO.
When calculating the decline in turnover test, are all members of a consolidated group included in the calculation?
No. The turnover test is undertaken on an entity by entity basis. An entity is not defined to include a consolidated group. However, the existence of the “single entity” rule for the purposes of the consolidations tax provisions will confuse people. This matter should be clarified by the ATO.
Note, however, that in determining whether the turnover of an entity is above or below $1 billion, it is the entity’s aggregated turnover that is used.
Restructure of Business
A business was about to go through a restructure, should we continue with this? Alternatively, a business needs to restructure due to the coronavirus.
Exercise great caution with restructures. These are possible but a restructure will cause a number of issues to arise such as change of employer, inability to directly compare turnovers with prior periods, employment law issues and so forth. Restructures will very likely require the exercise of the Commissioner’s discretions so as not to lose the JobKeeper benefit.
Trust Beneficiary Placed on the Payroll
A trust operates a business. There are some arm’s length employees. Some of the beneficiaries of the trust have been paid salary or wages in the past but it is somewhat sporadic. Is it OK to put the beneficiaries working in the business on the regular payroll so that the JobKeeper payment can be obtained for them?
The first requirement is that the individuals were employees as at 1 March 2020. That will be a question of fact. If the way in which these individuals are remunerated is changed for the sole or dominant purpose of obtaining the JobSeeker payments for them or increasing the amount, the actions will fall foul of the anti-avoidance provision. The ATO has released some limited information on this issue. Go to the ATO website and search for QC 62201.
Personal Services Income
My client operates a personal services business through a company. No wages are paid to the individual involved but all of the income is attributed to him due to the PSI rules. What is the position with JobKeeper in relation to this individual?
The individual should be able to be classed as an eligible business participant and the company should be able to claim the JobKeeper payment, provided all necessary conditions are met.
Poor Payroll Records
My client has poor, informal pay-roll records. Can the client claim the JobSeeker payment for his employees?
Yes, but with difficulty. The client must get their record keeping up to the standard required or miss out. Certain information must be supplied to the ATO for each JobSeeker fortnight. If this is not supplied, the business is ineligible. Also, there are record keeping requirements that have been legislated. If the ATO discovers that these records have not been kept, the entity is not entitled, and is taken never to have been entitled, to the JobKeeper payment. The Commissioner can request an entity to produce the records within 28 days.
If a business has a number of branches, is each branch assessed in relation to the decline in turnover or is the whole entity assessed?
The whole entity is assessed.
Cancellation of Election
Can a business cancel its involvement with the JobKeeper program if an election to enter the JobKeeper scheme has been made?
Downturn Estimation Error
If a business elects to be involved in the JobKeeper scheme because it projects that its turnover will fall by more than 30%, what happens if the fall in turnover turns out to be something less than this?
The answer to this is not entirely clear. The ATO needs to give specific information about this.
What we can say is that the Payments and Benefits Act contains a number of provisions that deals with overpayments of the JobKeeper payments. The entity will need to repay the amount and also be charged General Interest Charge.
We note that there is not a general discretion given to the Commissioner in relation to the calculation of the 30% downturn. The Commissioner is given the power to make legislative instruments about this requirement. There is nothing that refers to “honest mistakes or inadvertent errors” as is found in some other legislation.
If a business has both business income and passive income (e.g. interest and dividends) is the passive income taken into account when calculating the decline in turnover test?
No. The passive income is very likely to be input taxed income. Input taxed income is not taken into account when undertaking the decline in turnover test. It is specifically excluded from the definitions of “projected GST turnover” and “current GST turnover”.
Cash Flow Boost and JobKeeper
Can a business be eligible for both the cash flow boost and JobKeeper?
Are employees who have returned from maternity leave eligible for JobKeeper assistance, even if there is no actual work for the employee to do?
Yes, provided they meet the “eligible employees” tests. Also note that employees who are currently on maternity leave with paid parental leave from their employer are also eligible for JobKeeper assistance. However if the employee receives paid parental leave or dad and partner pay under the Paid Parental Leave Act 2010 and the person’s paid parental leave period overlaps with or includes a fortnight in respect of which a JobKeeper payment may be paid, the person is not an eligible employee for JobKeeper for that fortnight.
Is an employee who has been with the company for more than 3 years and works 3 hours a week or 6 hours a fortnight eligible for JobKeeper assistance?
Yes, provided they meet the “eligible employees” tests and their hours per week/fortnight are “regular and systematic”. While these terms are not defined, the Explanatory Statement to the Rules states: A casual employee is likely to be employed on a regular and systematic basis where the employee has a recurring work schedule or a reasonable expectation of ongoing work.
Is a casual employee who has been with the organisation more than one year, but opted not to work due to COVID-19, eligible for JobKeeker assistance?”
If the employee’s decision not to work meant that they had terminated their employment: No Only a person who has been stood down or is on leave is considered to be an employee of their employer for the purposes of the JobKeeper payment. However, if the employee was on an approved absence from the organisation due to their concern about contracting COVID-19, but were still an employee of the organisation as at 1 March 2020 and satisfied the other “eligible employees” tests then: Yes
Is a sole trader with no employees eligible for JobSeeker, JobKeeper and the Cash Flow Boost?
JobSeeker: Yes, but not if the employee is receiving JobKeeper payments.
Previously if a sole trader was trying to access income support payments they had to be willing to seek, and be available to take up, alternative work which effectively would have required them to close their business. These mutual obligation requirements will be temporarily removed to allow sole traders to continue operating and receive the JobSeeker Payment if they are eligible to do so. A sole trader who is eligible for a payment can meet their mutual obligation requirements during this period by continuing to sustain their business. Income testing will apply consistent with current arrangements. So the level of support a sole trader will receive will depend on their ongoing income and that of their partner, if they are in a relationship.
An “eligible business participant” who is involved in the daily running of the business can be nominated to receive JobKeeper assistance provided they meet the eligibility criteria. However please note:
- Only one person can be nominated;
- if a sole trader starts to receive the JobKeeper Payment they will need to notify Services Australia as this will impact their eligibility to JobSeeker assistance.
Cash Flow Boost: No
The cash flow boost assistance is only available to businesses with employees.
How will an employer who does not have STP apply for JobKeeper assistance?
The ATO will be accepting applications for JobKeeper assistance from Monday, 20th April 2020. There is information on the ATO’s website as to the steps to be taken once applications open.
If a subcontractor satisfies the definition of employee but invoices for his services, can a business apply for JobKeeper assistance for that subcontractor?
If the subcontractor meets the “eligible employee” tests then the business can apply for JobKeeper assistance for the subcontractor. However if the subcontractor is invoicing for his services rather than receiving salary and wages, there should be an analysis as to whether the subcontractor is indeed an employee. There is no definition of “employee” for the purposes of the JobKeeper rules, therefore the term will take its ordinary, common law meaning.
If my company earned $5,000 in April 2019 but in April 2020, it has zero income, is my decline in turnover 30% or more?
Yes, on its face, the decline in turnover is100%. However, the JobKeeper rules use the GST concepts of “projected GST turnover” and “current GST turnover”. You will need to satisfy yourself that the amounts you are referring to in your question satisfy these definitions. You should take note of the comments that are made in the ATO document entitled “Applying the turnover test” (QC 62132).
If a business does not satisfy the decline in turnover test at the start of the JobKeeper scheme, but does satisfy the test in a later test period, can the business apply for JobKeeper assistance from that later period?
Yes, if an entity does not qualify for, say, the month of April 2020 because its turnover has not been sufficiently affected, it can test in later months to determine if the test is met. This allows entities that only become affected part way through the six month period of operation of the JobKeeper scheme to continue to monitor for any decline in turnover until they qualify for the scheme in a later period. Also, if the business does not think it will have a sufficient decline in turnover for the month of April 2020, it can also undertake the test in relation to the June 2020 quarter. This can be done whether the business lodges its activity statements on a monthly or quarterly basis.
Once an entity satisfies the decline in turnover test does it need to retest its turnover in later months?
If a casual reaches 12 months service in April, can they qualify for the JobKeeper then?
No, the employee must meet the “eligible employee” tests as at 1 March 2020.
If an employer stands down all employees, can some be paid for hours they work while not working their regular hours. It seems inequitable if all employees are paid at least JobKeeper, but some will be asked to work.
To be eligible for JobKeeper assistance employees must receive a minimum of $1,500 per JobKeeper fortnight, regardless of hours actually worked. There have been amendments made to the Fair Work Act that enables employers who qualify for the JobKeeper scheme to give directions to their employees called “JobKeeper enabling directions”. These will not be explained here, but are relevant to this question. Refer to https://coronavirus.fairwork.gov.au/coronavirus-and-australian-workplace-laws/flexibility-in-workplace-laws-during-coronavirus/jobkeeper-changes-to-the-fair-work-act
Is the decline in turnover test calculated on a cash or accruals basis? Does the employer get to pick which to use or does it depend on how you lodged your last tax return or GST reporting basis?
In our view, that question is not relevant (however, see below ATO information). This is because the GST legislation, when referring to projected and current GST turnover, refers to the value of supplies made, or likely to be made in the period. The process is:
- Determine what supplies have been made or are likely to be made during the period.
- Determine the value of those supplies and sum the values.
The question of whether the amounts should be accounted for on a cash or accruals basis does not arise in the above process. Despite what we have said above, the ATO document entitled “Applying the turnover test” (QC 62132) states the following: “You may use an accruals basis of accounting to calculate both the current turnover and projected GST turnover as both calculations require you to include sales that you have made or are likely to make without any reference to when you are paid. However, if you prepare your activity statements on a cash basis, the ATO will allow you to calculate both the current and projected GST turnovers on a cash basis. The basis used must be the same for calculating your projected and current GST turnover. Typically, current turnover will equal your GST exclusive sales less your input taxed supplies.”
Is an “eligible business participant” required to be paid a minimum of $1,500 per JobKeeper Fortnight to be eligible for JobKeeper assistance?
\ No. Unlike for an employee, there is no “wage condition” to be satisfied for an eligible business participant. It appears that the entity that receives the $1,500 on behalf of the individual can choose to do what it likes with that amount.
Are the non-employee owners/operators of start-up businesses eligible for JobKeeper assistance?
The key issue is to determine whether the business has satisfied the decline in turnover test. The business will have to satisfy the “alternative test”. This requires the Commissioner to make a legislative instrument in relation to the particular class of business. At the time of writing the Commissioner has not released any legislative instrument. On the assumption that a future legislative instrument will enable the business to satisfy the decline in turnover test, provided that the entity satisfies the criteria for entitlement to JobKeeper assistance for a business participant and the individual meets the eligibility criteria of an eligible business participant, the non-employee owners/operators will be able to claim one JobKeeper payment.
What if the entity’s pay period does not match the JobKeeper fortnight?
The duration of the entity’s pay period is not relevant for determining whether the wages condition has been met for a JobKeeper fortnight. All that is required is that the minimum amount of $1,500 has been paid within the particular JobKeeper fortnight.
However, for the month of April 2020, the Commissioner has stated that he will accept that the wages condition has been satisfied if an employee has been paid a minimum of $3,000 for the month of April. The JobKeeper rules also provide that if an employer’s ordinary arrangement is to pay its employees on a frequency that is longer than a fortnight, then the payment can be allocated between fortnights on a reasonable basis.
Also, the JobKeeper rules provide the Commissioner with an ability to treat a particular event that happened in a fortnight as having happened in a different fortnight if the Commissioner considers it reasonable to do so.
Are Government schools eligible for JobKeeper assistance?
No, as Australian government agencies, local governing bodies, or wholly owned entities of these agencies/bodies are specifically excluded from JobKeeper eligibility, government schools cannot be eligible employers.
What is the situation for employees that were stood down?
Employees that were employed on 1 March 2020 and have been stood down from their employer will be eligible for JobKeeper assistance provided the eligible employer and eligible employee tests are met.
If an employer did not pay wages and reported nothing on STP for the month of April, will the employer get JobKeeper payments for the two April fortnights?
No. The JobKeeper scheme starts from 30 March 2020 with employers to receive the first reimbursements in May. Therefore, if the employer meets the JobKeeper scheme eligibility and is intending to claim JobKeeper payments, payments to employees on or after 30 March 2020 should be made under the JobKeeper arrangements. As per Prime Minister’s press conference on 3rd April 2020: “Well, the employers need to talk to their banks straight away, because what we’re providing under the JobKeeper program is an absolute guarantee you can take to the bank. Because those payments will be made for each of those employees and that should enable them to put a facility in place with their bank so they can make those payments to their employees.”
What is the situation for groups where individual group members are on different BAS cycles? On what basis is the decline in turnover test conducted?
The frequency with which BASs are lodged is, technically, irrelevant for the purposes of the decline in turnover test. However, practically, businesses may choose to use their BAS period as the comparison period between 2020 and 2019. The decline in turnover test will apply to each business connected with or affiliated with a group. Individual businesses within a corporate group may be eligible for the JobKeeper payment while other businesses in the group may not be eligible. Further, GST groups are ignored for the purposes of the decline in turnover test.
How is the decline in turnover determined where one ABN is used for multiple business?
The decline in turnover test applies to the “entity” and the entity’s projected GST turnover.
Can an employer choose when to be apply for the JobKeeper scheme?
Yes, indeed employers must elect to participate in the scheme. Employers are not automatically included in the scheme. An employer may not come to the conclusion that it has had the necessary decline in turnover until, say, July 2020. The employer can elect to become part of the JobKeeper scheme in the relevant fortnight in which the employer comes to that conclusion.
Are any of these tests limited or not available to Significant Global Entities?
No, provided the eligibility tests are met. It should be noted that a Significant Global Entity might need to have a 50% decline in turnover to be eligible for JobKeeper, although this is not necessarily the case.
Are the JobKeeper payments assessable income to the employer?
Yes, but as the JobKeeper payment will be equal to or less than the amount actually paid to the employee the JobKeeper payment will be offset by the allowable deduction created by the payment to the employee. Further, the JobKeeper payments are assessable income to the employee.
What is the situation with PAYGW obligations during the JobKeeper scheme period?
Employers are required to continue to meet their PAYGW obligations during the JobKeeper scheme period. The JobKeeper payments are before tax amounts and therefore tax should be withheld and remitted as appropriate.
What is the process for employers to elect to join JobKeeper?
All details are on the ATO website. Refer to https://www.ato.gov.au/general/jobkeeper-payment/employers/enrol-for-the-jobkeeper-payment/.