This is our 3rd Stimulus Newsletter please let us know
if you did not receive the earlier newsletters.
** I cannot stress how important it is you read this and take advantage of all the concessions you are being offered by the Government **
Some good news with the announcement of a new JobKeeper payment to assist eligible employers & at last, self employed individuals.
This is not legislated yet and is only an overview at this stage. We will be in touch with all our business clients over the next week to talk about your eligibility for all the concessions.
I also stress DO NOT lodge your March BAS until we have reviewed it with you.
My Skype details are Michael Wunsch – [email protected] or ring me on 02 9816 3111, 0420 219 269 or email. All our managers are available on Skype via their email addresses.
What is JobKeeper Payment?
It is a subsidy paid though the BAS system to employers. Eligible employers will have to apply to the ATO and are able to claim a subsidy of $1,500 per fortnight per eligible employee form 30 March 2020. Payments will commence the first week of May 2020 for a maximum of 6 months.
The ATO will pay it monthly in arrears.
Who is ELIGIBLE?
There are 2 levels of eligibility you must meet.
a. Employers are those with:
- Turnover below $1bn that have experienced a reduction in turnover (gross revenue) of more than 30% relative to a comparable period 12 months ago (of at least a month); or
- Turnover of $1bn or more that have experienced a reduction in turnover (gross revenue) of more than 50% relative to a comparable period 12 months ago (of at least a month); and
- Are not subject to the Major Bank Levy.
Sole traders and the self-employed (businesses with no employees) with an ABN, and not-for-profits (including charities) that meet the turnover tests are eligible for the JobKeeper payment.
AND
b. Have Employees who:
Were employed by the eligible employer at 1 March 2020; and
- Were employed by the eligible employer at 1 March 2020; and Are currently employed by the employer (including those who have been stood down or re-hired); and
- Are full time, part-time, or long term casuals (a casual employee employed on a regular basis for 12 months as at 1 March); and
- Are at least 16 years of age; and
- Are an Australian citizen, hold a permanent visa, are a Protected Special Category Visa Holder, a non-protected Special Category Visa Holder who has been residing continually in Australia for 10 years or more, or a Special Category (Subclass 444) Visa Holder; and
- Are not in receipt of a JobKeeper Payment from another employer.
Employees with multiple employers will need to notify their primary employer to claim the JobKeeper payment on their behalf. Only one employer can receive the payment.
Please note the $1,500 subsidises the employee’ current salary and if the employee earns less than $1,500 per fortnight they will be paid the full $1,500.
HOW IT WORKS
All eligible workers will be paid a gross minimum amount of $1,500 per fortnight as follows:
(a) If the employee ordinarily receives $1,500 or more in salary or wages income per fortnight, they will continue to receive their regular income. It will subsidise part or all of the their salary.
(b) If the employee ordinarily receives less than $1,500 in salary or wages income per fortnight, their employer must pay the employee a minimum gross salary or wage of $1,500 a fortnight under the JobKeeper payment scheme.
(c) If an employee has been stood down, their employer must pay the employee a minimum gross fortnightly salary income of $1,500 under the JobKeeper payment scheme.
(d) If an employee was employed on 1 March 2020, has subsequently ceased employment with their employer, and then has been re-engaged by the same employer, the employee will receive a minimum gross fortnightly salary of $1,500 under the JobKeeper payment scheme.
Please bear in mind when claiming this there are additional on costs to pay eg super, workers comp, payroll tax. However some of this still needs to be clarified by the Government.
WHAT YOU NEED TO DO NOW
EMPLOYEES
Contact you primary employer and find out if they intend to apply, you do not need to do anything else.
EMPLOYERS
Register
Employers need to apply via an online application with supporting documentation demonstrating a downturn in their business and must report the number of eligible employees on a monthly basis.
Businesses without employees ie self employed will need to provide an ABN and nominate an individual to receive the payment and provide that individual’s tax file number you will need to provide a monthly update of your business,
Applications are not yet open. However, you should register your intent to apply for the JobKeeper subsidy with the ATO. https://www.ato.gov.au/general/gen/JobKeeper-payment/.
Assess your turnover
- Ensure you have an accurate record of your revenue for the 2018-19 income year and for the 2019-20 year to date
- Ensure you keep an accurate record of revenue from March 2020 onward
- Compare your revenue for the whole of March 2019 with the whole of March 2020
- Measure the % decline in your revenue (sales turnover) and ensure it has declined by more than 30%
- If you are not eligible in March, you may become eligible in another month
Identify eligible employees
- Nominate the employees eligible for the JobKeeper payments – you will need to provide this information to the ATO and keep that information up to date each month. The ATO will use Single Touch Payroll to prepopulate the information in most cases.
- Notify all eligible employees that they are receiving a JobKeeper payment. Employees can only be registered with one employer.
- Pay eligible employees at least $1,500 per fortnight (before tax). If an employee normally receives $1,500 or more per fortnight before tax the employee should continue to receive their regular income. Note: It is unclear at this stage if the employer must continue to pay their employee the same salary if it was more than the subsidy amount.
- Pay superannuation guarantee on normal salary and wages amounts paid to employees. If the employee normally receives less than $1,500 per fortnight before tax, the employer can decide whether to pay superannuation on the additional amount that is paid as a result of the JobKeeper program.
Your Finances & Accounts
prepare a cashflow & get your accounts up to date so you can assess if you are entitled to claim this subsidy
If you need help on any of this please do not hesitate to contact me.
Also, for all telephone assistance our firm provides there is no charge for our time, regardless of the time it takes.
This is our contribution to your business.
For all other work we do such as written advice, we will charge our normal rate less 20% (virus discount) as a form of support to you.
Please contact me 02 9816 3111 or 0420 219 269.