More JobKeeper Payment Information
The ATO have released more information in relation to the JobKeeper payment which can be found here which expands on the details emailed on 31 March. Below is a summary of some of the key points as per the ATO website. The ATO is yet to release more information so there are unanswered questions.
Determining Fall In Turnover
To work out your fall in turnover, you can compare either:
How you choose to project your fall in turnover is not dependent on whether you report a quarterly or monthly BAS, though you can do that if it is easier.
- 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.
If you work out that you qualify for the JobKeeper payments for the first fortnight because your turnover has declined by the relevant amount, you remain eligible and do not need to keep testing turnover in following months. However, you will have ongoing monthly reporting requirements.
Before you enrol to receive JobKeeper payments, you need to notify each eligible employee that you intend to nominate them as eligible employees under the JobKeeper scheme.
The employee must agree to be nominated by you by completing the JobKeeper employee nomination notice and returning it to you for your records.
The nomination form does not need to be provided to the ATO however employers are required to keep a copy of the completed form as part of their record keeping obligations under the law.
Enrol for the JobKeeper Payment (from 20 April)
You can enrol for the JobKeeper payment as below or via contacting our office for assistance:
- Step 1 – Register your interest and subscribe for JobKeeper payment updates.
- Step 2 – Check you and your employees meet the eligibility requirements.
- Step 3 – Continue to pay at least $1,500 to each eligible employee per JobKeeper fortnight (the first JobKeeper fortnight is the period from 30 March to 12 April).
- Step 4 – Notify your eligible employees that you are intending to claim the JobKeeper payment on their behalf and check they aren't claiming JobKeeper payment through another employer or have nominated through another business.
- Step 5 – Send the JobKeeper employee nomination notice to your nominated employees to complete and return to you by the end of April if you plan to claim JobKeeper payment for April. Keep it on file and provide a copy to our office if you are using our office for assistance.
- Step 6 – From 20 April 2020, you can enrol with the ATO for the JobKeeper payment using the Business Portal and authenticate with myGovID. You must do this by the end of April to claim JobKeeper payments for April.
- Step 7 – In the online form, provide your bank details and indicate if you are claiming an entitlement based on business participation, for example if you are a sole trader.
- Step 8 – Specify the estimated number of employees who will be eligible for the first JobKeeper fortnight (30 March – 12 April) and the second JobKeeper fortnight (13 April – 26 April).
Confirmation of eligible employees you will claim JobKeeper Payment for (available from 4 May 2020 onwards)
You can apply for the JobKeeper payment for your eligible employees via the below steps or via contacting our office:
- Step 1 – Apply to claim the JobKeeper payment by logging in to the ATO Business Portal.
- Step 2 – Ensure you have paid each eligible employee a minimum of $1,500 per JobKeeper fortnight before tax.
- Step 3 – Identify your eligible employees in the application form by
- selecting employee details that are prefilled from your STP pay reports if you report payroll information through an STP enabled payroll solution, or
- manually entering employee details in ATO online services or the Business Portal if you do not use an STP enabled payroll solution, or
- using our office to submit a report on your behalf through Online services for agents.
- Step 4 – Submit the confirmation of your eligible employees online and wait for your confirmation email or SMS showing it has been received.
- Step 5 – Notify your eligible employees you have nominated them.
- Step 6 – The ATO will pay you the JobKeeper payment for all eligible employees after receiving your application.
- Step 7 – Each month, you will need to reconfirm that your reported eligible employees have not changed through ATO online services, the Business Portal or via our office. This will ensure you will continue to receive the JobKeeper payments. You do not need to retest your reported fall in turnover, but you will need to provide some information as to your current and projected turnover. This will be done in your monthly JobKeeper Declaration report.
- Step 8 – If your eligible employees change or leave your employment, you will need to notify the ATO through your monthly JobKeeper Declaration report.
If you use the ATO Business Portal, you will need a myGovID linked to your ABN in relationship Authorisation Manager (RAM). You can find out how to set this up at ato.gov.au/mygovid
If you wish to discuss the above further, please feel free to call the office.
Rent Relief Options
Last week, the Federal Government introduced a new rent relief Code of Conduct that could help your business.
What you need to know:
- Rent relief will be in proportion to the reduction in your business' turnover.
- At least half of this rent relief must be in the form of a waiver of the rent (e.g. if you suffer a 60% fall in revenue, then at least 30% of the total relief must be a rent waiver and the other 30% a deferral).
- You will need to repay deferred rent over the longer of the balance of the lease term, or 24 months.
- No fees, interest or other charges are to be applied with respect to any rent that is waived or deferred.
- Your landlord will not be able to terminate your lease or draw on the security you provided for the lease during the pandemic and a reasonable subsequent recovery period.
The above sets out the minimum standards to be applied and parties are free to negotiate a different arrangement if that suits.
NSW Government Small Business Grants
Thousands of small businesses across NSW struggling to cope with the COVID-19 shutdown will receive grants of up to $10,000 under a new assistance scheme announced by the NSW state government.
To be eligible, businesses will need to:
- Have between 1-19 employees and a turnover of more than $75,000;
- A payroll below the NSW Government 2019-20 payroll tax threshold of $900,000;
- Have an Australian Business Number as at 1 March 2020, be based in NSW and employ staff as at 1 March 2020;
- Be highly impacted by the Public Health (COVID-19 Restrictions on Gathering and Movement) Order 2020 issued on 30 March 2020;
- Use the funding for unavoidable business costs such as utilities, overheads, legal costs and financial advice;
- Provide appropriate documentation upon application.
Applications for a small business grant of up to $10,000 will be available through Service NSW shortly and remain open until 1 June 2020.