JOBKEEPER UPDATES AND EXTENSIONS

Here at Milanese & Co Accountants, we have been working tirelessly to stay on top of all the changes and updates so we can best help you throughout this period.

As part of that, we wish to inform you of some recent updates and changes in relation to JobKeeper. We ask that you have a read of our previous blogs on JobKeeper so you are as informed as possible, or as always give us a call or flick us an email so we can help you out.  

The four new updates, we are outlining in this blog are:

  • Alternative Test

  • Fulltime Students and JobKeeper

  • Extensions for paying Wages

  • Reporting JobKeeper payments

ALTERNATIVE TEST
If you feel you have not satisfied the general rules for JobKeeper, there may be an alternative. The ATO have recently released the Alternative Test. The tests outlined below assist some businesses that may not have been able to meet the requirements under the basic test.
Circumstances where an alternative test may apply:

  • Your business commenced trading after the relevant comparison period (e.g. your business did not exist in the comparison period);

  • Your business acquired or disposed of part of the business after the relevant comparison period (your business is not the same business in the comparison period as it is now);

  • Your business underwent a restructure after the relevant comparison period (your business is not the same business in the comparison period as it is now);

  • Your business' turnover substantially increased by:  

    • 50% or more in the 12 months immediately before the applicable turnover test period; or

    • 25% or more in the 6 months immediately before the applicable turnover test period; or

    • 12.5% or more in the 3 months immediately before the applicable turnover test period.

  • Your business was affected by drought or other declared natural disasters during the relevant comparison period;

  • Your business has a large irregular variance in its turnover for the quarters ending in the 12 months before the applicable turnover test period, excluding businesses that have cyclical or regular seasonal variances in their turnover;

  • Your business operates as a sole trader or small partnership where sickness, injury or leave have impacted an individual’s ability to work which has affected turnover.

If you feel that you fall under any of these categories and have not been able to meet the basic JobKeeper test of a 30% decrease in turnover compared with a comparable period in the previous financial year (for most small businesses), please contact us so we can discuss your unique circumstances further.

FULL TIME STUDENTS
You will not be eligible for the JobKeeper Payment if you were under 16 at 1 March, 2020 or are a full-time student, 17 years old and younger, and you are not financially independent.

EXTENSIONS
The ATO has recently extended the deadline for April 2020 JobKeeper payments. You now have until the 8th of May, 2020 to pay employees for the month of April and you have until 31st of May, 2020 to register for JobKeeper and be reimbursed for eligible April payments.
We do ask if you believe you may be eligible to contact us immediately, as the ATO has advised that JobKeeper payments will commence in the first week of May 2020. To avoid being out of pocket we ask that you enrol your eligible employees as soon as possible.

REPORTING JOBKEEPER PAYMENTS
It is very important that when submitting your single touch payroll (STP) information, you have set it up correctly to include the JobKeeper payment. If you are using an online software, such as MYOB or Xero, they are now updated with tools to help you with JobKeeper payments. If you are not using online software or are unsure how to submit payments using STP please contact us as soon as possible.
Please contact our office on 8523 0999 if you need to discuss any of these items in further detail.

We would like to remind you all that we are here to help you and will continue to be throughout this challenging time.

Stay safe and look after each other.

Sources;https://www.milaneseco.com.au/blog/2020/4/17/jobkeeper-what-employers-need-to-know-and-do-to-access-the-jobkeeper-payment
https://treasury.gov.au/sites/default/files/2020-04/Fact_sheet__JobKeeper_Info_for_Employees.pdf
https://www.ato.gov.au/general/JobKeeper-Payment/?=redirected_JobKeeper

Regards,
The Team at Milanese & Co Accountants

Milanese & Co Accountants