Updated 14th April.

****Important update on JobKeeper applications - the ATO will open applications on the 20th of April via their Online Services which can be accessed using your myGov ID or my our office.

See also our recent newsletters.  Most importantly we are here to help with these measures as they apply over the next six months. 

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Income Test: To be eligible for the subsidy your business must:

• have suffered, or be forecast to suffer, a reduction in GST turnover of,
• 30% or more for most employers
• 15% for ACNC registered charities,
• 50% for businesses with GST turnover greater than $1bn, for
• the months of March, April or the June Quarter for eligibility from 30th March, or
• any following month to September, or the September quarter for eligibility for that month onwards, which
• only needs to be satisfied once to be eligible for the remaining period, and
• an alternative test is available by application to the ATO and will be stringently applied for situations where the law has not operated in spirit. 

Please be aware that if you are not GST registered, the legislation makes amendments to treat you as if you are, and you will still be eligible. Carve-outs are also available for gifts received for deductible gift recipients, and for people operating solely overseas. 

Application: Applications will need to be made to the ATO to claim the subsidy. Your employees must provide you with a nomination notice disclosing eligibility before applying. Employees receiving Paid Parental Leave, Dad and Partner Pay, or Workcover that has left them unable to work are ineligible. Applications should be made before the end of April 2020 to be eligible from the start date (30 March 2020) although the ATO is making note that the application can be done as late as the end of May. You must then notify employees they've been elected for the payment within 7 days of application.

Payments: Future payments will be made monthly in arrears, no later than 14 days after the end of the month eligible payments were made in. The last eligible fortnight is the 27th September 2020, with the last payment due no later than 14th October 2020. You must report your current and projected GST turnover within 7 days at the end of each month you qualify (i.e. you report in the first week after month-end, the ATO pays you in the second week), although reported amounts do not affect eligibility. We expect payments will be made to the account used for BAS refunds, or where not available, the listed account on the latest income tax return. 

The ATO retains authority to recover any overpayments plus interest where the entity or employee is ineligible.

Employers will receive the payment for each eligible employee who was; employed on 1 March 2020, over the age of 16, continues to be engaged by that employer, and is a permanent full-time, permanent part-time, or a casual worker that was employed for over 12 months as at 1 March 2020. This includes stood down employees and employees who had been terminated but re-engaged, if they satisfied these employment conditions on 1 March 2020. Employees must be an Australian resident or a 444 special visa holder.

The JobKeeper payment will also apply to a single approved associate or sole trader where you were not considered an 'employee' on 1 March 2020 but had an active role in the business. The same conditions for an employee need to be met, including a nomination form to be completed, and for all entities excluding sole traders, a letter advising the election was made must be provided to the elected individual. Approved associates are:

1. a director of a company, or
2. a shareholder of a company, or
3. a partner of a partnership, or
4. an adult beneficiary of a trust. 

Once an individual is nominated, another individual cannot be 'exchanged' in a later fortnight.

Employees who normally receive more than $1,500 per fortnight in wages must still be paid their standard hourly rate however hours can be adjusted in limited circumstances under the Fair Work Actchanges. You will receive the full $1,500 subsidy for employees who continue to receive normal wages.

If the employee ordinarily receives less than $1,500 per fortnight or is stood down without pay, they must be paid the minimum $1,500 per fortnight, regardless of the hours they actually work. The $1,500 can be made up of:

• net amounts paid to the employee,
• tax withheld,
• salary sacrificed amounts to the employee's super fund, 
• any other manner agreed by the individual and the employer as reasonable.

Superannuation must still be paid on the usual basis (on Ordinary Time Earnings for hours worked) however, it is not compulsory to pay super on any additional amount up to $1,500.