COVID-19 JobKeeper Update

________________________________________


28 April 2020 

Late Friday the Government has provided further clarity on certain aspects of the JobKeeper .

 

The key areas addressed that will impact our clients were:

 

1. Extension of time from 30 April to 31st May 2020 to enrol for the JobKeeper scheme

2. Charities and the treatment of government revenue. Charities can exclude Government revenue from the JobKeeper turnover test

3. 'One in all in’ principle. The employer must ensure that all of these eligible employees are covered by their participation in the scheme. This includes all
     eligible employees who are undertaking work for the employer or have been stood down. The employer cannot select which eligible employees will

     participate in the scheme. 

4. Full time students aged 16 and 17 years old. The rules will provide that full time students who are 17 years old and younger, and who are not financially

     independent, are not eligible for the JobKeeper Payment. 

5. Banks. The banks have also agreed to setup special hotlines to help businesses who need finance to bridge the gap until the first JobKeeper payments are

     made. The banks have also agreed to bring JobKeeper-related applications to the front of the queue and work with the ATO to accelerate the finance

     assessment process.

6. Alternate Decline in Turnover Test

a. Where the Commissioner is satisfied the Employer does not have an appropriate relevant comparison period for the decline in turnover test:

b. The Commissioner has provided the following Alternative Decline in Turnover Test Rules 2020. The alternative tests will only apply to seven circumstances as follows:

  • business commenced
  • business acquisition or disposal that changed the entity's turnover
  • business restructure that changed the entity's turnover
  • business had substantial increase in turnover
  • business affected by drought or natural disaster
  • business has an irregular turnover
  • sole trader or small partnership with sickness, injury or leave.

 

The following is a link to Treasury’s Updated Fact Sheet

https://treasury.gov.au/coronavirus/jobkeeper

 

https://treasury.gov.au/sites/default/files/2020-04/Fact_sheet__JobKeeper_Info_for_Employees.pdf

 

The following is a link to the Treasurer’s Media Release on Friday

 

https://ministers.treasury.gov.au/ministers/josh-frydenberg-2018/media-releases/jobkeeper-update 

 

 

Late Friday the Government has provided further clarity on certain aspects of the JobKeeper .

 

The key areas addressed that will impact our clients were:

 

1. Extension of time from 30 April to 31st May 2020 to enrol for the JobKeeper scheme

2. Charities and the treatment of government revenue. Charities can exclude Government

     revenue from the JobKeeper turnover test

3. 'One in all in’ principle. The employer must ensure that all of these eligible employees are

     covered by their participation in the scheme. This includes all eligible employees who are

     undertaking work for the employer or have been stood down. The employer cannot select which

     eligible employees will participate in the scheme. 

4. Full time students aged 16 and 17 years old. The rules will provide that full time students who

     are 17 years old and younger, and who are not financially independent, are not eligible for the

     JobKeeper Payment. 

5. Banks. The banks have also agreed to setup special hotlines to help businesses who need

     finance to bridge the gap until the first JobKeeper payments are made. The banks have also

     agreed to bring JobKeeper-related applications to the front of the queue and work with the ATO

     to accelerate the finance assessment process.

6. Alternate Decline in Turnover Test

a. Where the Commissioner is satisfied the Employer does not have an appropriate relevant

     comparison period for the decline in turnover test:

b. The Commissioner has provided the following Alternative Decline in Turnover Test Rules 2020.

     The alternative tests will only apply to seven circumstances as follows:

  • business commenced
  • business acquisition or disposal that changed the entity's turnover
  • business restructure that changed the entity's turnover
  • business had substantial increase in turnover
  • business affected by drought or natural disaster
  • business has an irregular turnover
  • sole trader or small partnership with sickness, injury or leave.

 

The following is a link to Treasury’s Updated Fact Sheet

https://treasury.gov.au/coronavirus/jobkeeper

 

https://treasury.gov.au/sites/default/files/2020-04/Fact_sheet__JobKeeper_Info_for_Employees.pdf

 

The following is a link to the Treasurer’s Media Release on Friday

 

https://ministers.treasury.gov.au/ministers/josh-frydenberg-2018/media-releases/jobkeeper-update 

 

 

Late Friday the Government has provided further clarity on certain aspects of the JobKeeper .

 

The key areas addressed that will impact our clients were:

 

1. Extension of time from 30 April to 31st May 2020 to enrol for

     the JobKeeper scheme

2. Charities and the treatment of government revenue. Charities

     can exclude Government revenue from the JobKeeper turnover test

3. 'One in all in’ principle. The employer must ensure that all of these

     eligible employees are covered by their participation in the scheme.

     This includes all eligible employees who are undertaking work for

     the employer or have been stood down. The employer cannot

     select which eligible employees will participate in the scheme. 

4. Full time students aged 16 and 17 years old. The rules will

     provide that full time students who are 17 years old and younger,

     and who are not financially independent, are not eligible for the

     JobKeeper Payment. 

5. Banks. The banks have also agreed to setup special hotlines to

     help businesses who need finance to bridge the gap until the first

     JobKeeper payments are made. The banks have also agreed to

     bring JobKeeper-related applications to the front of the queue and

     work with the ATO to accelerate the finance assessment process.

6. Alternate Decline in Turnover Test

a. Where the Commissioner is satisfied the Employer does not have

     an appropriate relevant comparison period for the decline in

     turnover test:

b. The Commissioner has provided the following Alternative Decline in

     Turnover Test Rules 2020. The alternative tests will only apply to

     seven circumstances as follows:

  • business commenced
  • business acquisition or disposal that changed the entity's turnover
  • business restructure that changed the entity's turnover
  • business had substantial increase in turnover
  • business affected by drought or natural disaster
  • business has an irregular turnover
  • sole trader or small partnership with sickness, injury or leave.

 

The following is a link to Treasury’s Updated Fact Sheet

https://treasury.gov.au/coronavirus/jobkeeper

 

https://treasury.gov.au/sites/default/files/2020-04/Fact_sheet__JobKeeper_Info_for_Employees.pdf

 

The following is a link to the Treasurer’s Media Release on Friday

 

https://ministers.treasury.gov.au/ministers/josh-frydenberg-2018/media-releases/jobkeeper-update 

 

 

Late Friday the Government has provided further clarity on certain aspects of the JobKeeper .

 

The key areas addressed that will impact our clients were:

 

1. Extension of time from 30 April to     
     31st May 2020 to enrol for the

     JobKeeper scheme

2. Charities and the treatment of

     government revenue. Charities can

     exclude Government revenue from the

     JobKeeper turnover test

3. 'One in all in’ principle. The employer

     must ensure that all of these eligible

     employees are covered by their

     participation in the scheme. This includes

     all eligible employees who are 
     undertaking work for the employer or

     have been stood down. The employer

     cannot select which eligible employees

     will participate in the scheme. 

4. Full time students aged 16 and 17 
     years old. 
The rules will provide that full

     time students who are 17 years old and

     younger, and who are not financially

     independent, are not eligible for the

     JobKeeper Payment. 

5. Banks. The banks have also agreed to

     setup special hotlines to help businesses

     who need finance to bridge the gap until

     the first JobKeeper payments are made.

     The banks have also agreed to bring

     JobKeeper-related applications to the

     front of the queue and work with the ATO

     to accelerate the finance assessment

     process.

6. Alternate Decline in Turnover Test

a. Where the Commissioner is satisfied the

     Employer does not have an appropriate

     relevant comparison period for the

     decline in turnover test:

b. The Commissioner has provided the

     following Alternative Decline in Turnover

     Test Rules 2020. The alternative tests will

     only apply to seven circumstances as

     follows:

  • business commenced
  • business acquisition or disposal that changed the entity's turnover
  • business restructure that changed the entity's turnover
  • business had substantial increase in turnover
  • business affected by drought or natural disaster
  • business has an irregular turnover
  • sole trader or small partnership with sickness, injury or leave.

 

The following is a link to Treasury’s Updated Fact Sheet

https://treasury.gov.au/coronavirus/jobkeeper

 

https://treasury.gov.au/sites/default/files/2020-04/Fact_sheet__JobKeeper_Info_for_Employees.pdf

 

The following is a link to the Treasurer’s Media Release on Friday

 

https://ministers.treasury.gov.au/ministers/josh-frydenberg-2018/media-releases/jobkeeper-update