There are broadly two steps to determining if an employer is eligible for the payment: Step 1: Determine which percentage threshold applies. it must meet the relevant decline in turnover test(s) and not be an excluded entity. Make sure that you deal with your tax obligations early. Disqualifying factors. its current GST turnover for the reporting month and projected GST turnover for the following month (special reporting requirements apply where the employer utilises the modified test for employee entities within a group); and. Guidance on tax obligations and relief for individuals affected by COVID-19. The employees are eligible employees for the JobMaker Hiring Credit scheme. The eligible employer must retain this notice in its records (it does not have to be lodged with the ATO). However, businesses will still need to assess whether any items reported in their BAS should be excluded (for example, input taxed supplies and certain GST adjustments) or additional items should be included (for example, intra-GST group supplies) for the purposes of their actual decline in turnover test. Principle 3: Make a reasonable assessment of projected GST turnover. Australian workers at foreign-owned companies will miss out on the federal government's JobKeeper wage subsidy after a last minute change to eligibility requirements. Refer to our JobKeeper and single touch payroll webpage for further insight into practical considerations for payroll teams to administer and manage the obligations. This is clearly marked. sovereign entities, and approved providers of an approved child care service are not eligible. With the introduction of the 1 July 2020 employment test date, employees who have previously nominated as an eligible employee with one entity are now able to re-nominate as an eligible employee of another entity in limited circumstances. JobKeeper is the new Federal Government wage subsidy payment which will enable eligible employers to access a subsidy to continue paying their employees. Employers will need to be careful in considering whether flexibility provisions are appropriate having regard to existing arrangements with their employees, and their continuing JobKeeper participation status. With effect from 3 August 2020, the test date was changed from 1 March 2020 to 1 July 2020 to allow additional employees to be brought into the program. You do not have to pay us amounts you owe for your tax return or BAS before claiming the payment. You will need to confirm that the information in the claim form is true and correct. These measures will continue for employers that qualify for the extended JobKeeper arrangements from 28 September 2020, and also for legacy JobKeeper participating employers that are no longer eligible, but continue to meet a 10 per cent decline in turnover test. The director would not qualify as an eligible additional employee. Employees receiving Parental Leave Pay from Services Australia will not be eligible for the JobKeeper Payment, however those on parental leave from their employer will be eligible. The JobKeeper program is available to employers who, on 1 March 2020, carried on a business in Australia, was a not-for-profit organisation that pursued its objectives principally in Australia or was an international affairs deductible gift recipient, and meets the decline in turnover test. As A Co is carrying on a business, holds an ABN, has registered for PAYGW and has registered for the JobMaker Hiring Credit scheme it will be eligible for payments under the scheme if it satisfies the other eligibility requirements. For each claim period, you must also complete your claim through ATO online services or the Business Portal. The ATO has provided detailed guidance on calculating GST turnover on its website and in Law Companion Ruling LCR 2020/1. Entities in liquidation or who have entered bankruptcy. sovereign entities are not eligible. Your due date will depend on whether your reporting cycle is monthly, quarterly or annual. How should we present the amounts received as reimbursements of the salaries and wages paid to our eligible employees in our financial statements? The Commissioner of Taxation has the power to determine that certain supplies or classes of supplies are to be treated as being wholly or partly made at a particular time for the purposes of the actual decline in turnover test. an entity that has had an increase in turnover by 50 per cent or more in the 12 months immediately before the applicable turnover test period, or 25 per cent or more in the six months immediately before the applicable turnover test period, or 12.5 per cent or more in the three months immediately before the applicable turnover test period. An eligible business participant is, broadly, an individual who: is a sole trader, a partner in a partnership entity, an adult beneficiary of a trust, a shareholder or a director in the company; is actively engaged in the business carried on by the entity which is not a non-profit body, and the entity had an ABN on or before 12 March 2020; aged 16 or 17 years and independent or not undertaking full time study (both of these terms taking their meaning from the Social Security Act 1991) (note that this latter additional independence or study requirement for 16 and 17 year olds to qualify for the program only applies from 11 May 2020); an Australia resident within the meaning of the Social Security Act 1991 (which includes an Australian citizen, the holder of a permanent visa, and a special category visa holder who is a protected SCV holder) or a Special Category (Subclass 444) Visa Holder who was also a resident of Australia for tax purposes on 1 March 2020; and. You must meet your lodgment obligations for the two years up to the end of the JobMaker period for which you are claiming. not in receipt of another JobKeeper Payment (either as a nominated business participant of another business or as an eligible employee of an employer). The ASU along with the Australian union movement welcome the extension of the payment, but until the scheme fully covers all casual workers, all visa workers and aviation workers who have been excluded due to sovereign entity eligibility, JobKeeper … However, it has not lodged its GST return for the December quarter in 2015. Before an eligible employer applies for the JobKeeper Payment, it must notify its eligible employees of the intention to participate in the program. View our one-page summary for more information on the latest JobKeeper payment updates. It is important to note that GST turnover is a specific term which may include different revenue items to what is usually included in Business Activity Statements (BAS). Eligible businesses are required to notify the Commissioner of Taxation whether the higher or lower JobKeeper amount applies to an eligible employee or eligible business participant. However, the employer could be in scope for disqualification if the employee was manipulated or coerced into agreeing to the changes. Entities that do not qualify include companies in liquidation, government bodies, major banks and sovereign entities: 6. Eligible employees are also required to agree that they meet the eligibility requirements and confirm that they have not agreed to be nominated by any other employer/entity and have not given another entity a nomination form for the purpose of the program. To re-nominate, the individual must have ceased their employment or business participation with the first entity before 1 July 2020, and commenced their employment with the new entity by 1 July 2020. These provisions are subject to reasonableness and consultation requirements. ‘Government employers are considered to have a greater capacity to support their employees through this period than private … Refer above for additional information regarding these concepts. The JobKeeper scheme is progressive in that it benefits the low-paid or stood-down worker relatively more and is ... a sovereign entity, a company where a liquidator is appointed, an individual where a trustee in bankruptcy has been appointed. The normal rules for deductibility apply in respect of the amounts the business pays to its employees where those amounts are subsidised by the JobKeeper payment. For any eligible employer who is entitled to JobKeeper payments at any time on or after 28 September 2020, it is also a requirement that the employer notify all eligible employees in writing whether the higher or lower rate of JobKeeper payment was notified to the Commissioner in respect of the particular individual (see Amount of JobKeeper Payment below). You must be an eligible employer with eligible employees, an eligible entity with an eligible business participant or a registered religious institution with eligible religious practitioners. All rights reserved. In order for an entity (referred to in the rules as the employer) to be entitled to a jobkeeper payment for a particular individual in respect of a particular jobkeeper fortnight, the employer must meet various conditions … What are the eligibility requirements for my business? However, Australian resident entities owned by a sovereign entity that meet all other eligibility criteria are eligible. 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