JobKeeper registration process available from Monday 20th April 2020.
We can finally provide you with more details about the JobKeeper Payments eligibility criteria and the application process.
As you know, the decline in turnover test needs to be satisfied before an entity becomes eligible for the JobKeeper payment. Once this occurs there is no requirement to retest in later months.
If an entity does not qualify for the month of April 2020 because its turnover has not been sufficiently affected, it can test in later months to determine if the test is met. This allows entities that only become affected part way through the six-month period of operation of the JobKeeper scheme, to continue to monitor for any decline in turnover until they qualify for the scheme in a later period.
30 per cent decline in revenue requirement
A business, with a turnover of less than $1 billion, will generally satisfy the test where the GST turnover in the ‘turnover test period’ falls short of the ‘comparison turnover’ and that shortfall is 30 per cent or more.
A charity or not-for-profit entity (exclusions apply) only needs to demonstrate a 15 per cent decline in revenue.
There are 2 ways a business can meet the eligibility test:
- The basic test
- The alternative test
The basic eligibility test
The basic decline in turnover test works by comparing the projected GST turnover of the entity for a period (which could be a month or a quarter) with the GST turnover as calculated for a relevant comparison period. The turnover test period could be any month between March 2020 and September 2020, or a quarter starting 1st April 2020 or 1st July 2020. This will be compared to the corresponding period last year.
Accordingly, for example, a business can make the comparison by comparing the whole of the month of March 2020 with March 2019, or by comparing the quarter beginning on 1 April 2020 with the quarter beginning on 1 April 2019.
The alternative eligibility test
The alternative decline in turnover test applies if there is not an appropriate relevant comparison period in 2019. This might be the case for a new business, started for example in January 2020 or a business that made a major business acquisition in 2020.
You, the employer must elect to participate via the Business Portal with my GovID. This can be done from Monday 20th April 2020 onwards. Your accountant can also do this for you.
You must also report the following information to the commissioner on a monthly basis:
- your current GST turnover for the reporting month; and
- your projected GST turnover for the following month
The report must be made to the Commissioner within 7 days of the end of the reporting month.
You must get your employees to sign this form
The JobKeeper Employee Nomination Form must be completed, signed and returned to you in order for you to be eligible to enter into the JobKeeper Scheme. These forms need to be kept on file for at least 5 years. We recommend that you organise this ASAP.
All Clear Path Accounting clients will enjoy the automatic assistance from our amazing team in the registration process. This is our committment to you during these times. We will also ensure that you enrol all eligible employees and that you remain compliant with the ongoing reporting requirements.
For those of you who are not receiving this support from your accountant, please reach out to us for assistance.
Be aware that businesses, individuals and entities that deliberately enter into contrived arrangements with the sole or dominant purpose of reducing their turnover in order to gain access to JobKeeper payments or increase the amount of JobKeeper payments they receive will not be entitled to the payment or the increased payment and the general interest charge will apply on the overpayment under section 19 of the Act. In addition, significant administrative as well as criminal penalties are also likely to apply to the parties involved in such schemes.
More details of the JobKeeper Payment scheme can be found here