26 May 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
- Charities and the treatment of government revenue. Charities can exclude Government revenue from the JobKeeper turnover test
- '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.
- 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.
- 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.
- Alternate Decline in Turnover Test
- Where the Commissioner is satisfied the Employer does not have an appropriate relevant comparison period for the decline in turnover test:
- 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
The following is a link to the Treasurer's Media Release on Friday