As part of the Federal Government’s stimulus package to help assist Australian businesses facing financial hardship resulting from the effects of the COVID-19 pandemic, the JobKeeper Scheme was announced. This scheme is designed at creating lasting relationships between employers and employees during this uncertain period by offering a $1,500 fortnightly payment for those eligible. Applications for the JobKeeper Payment Scheme has opened from Monday 20 April 2020. Walker Hill has put together a step-by-step guide below to ensure that you are ready to submit your application and with what to do following submission to ensure that you can make this scheme count for you and your business.
Step 1: Register Your Interest with the ATO
The first step in beginning your preparation for your JobKeeper application is to register your interest and to receive updates and information with the Australian Taxation Office (ATO). This is a simple online form which will require you to fill in the basic information for your business and the best contact person to receive any JobKeeper updates.
To complete this step: Fill in the online form to register your interest in the JobKeeper Scheme now.
TIP 2: Check Your Eligibility as an Employer
Once you have registered your interest, you will need to check your eligibility for this subsidy as an employer. The eligibility is determined by a few factors including:
- If you have a business or non-profit with an ABN in Australia on 1 March 2020; and
- Your business met the decline in turnover test and was not subject to Major Bank Levys, not considered a government body, or is not in liquidation or bankrupt.
The turnover test is a once-only test and your business will need to satisfy either the basic or modified tests to be eligible for the JobKeeper payments.
Both tests require a revenue reduction of the below amounts to be eligible for JobKeeper payments:
- More than 15% for an ACNC-registered charity;
- More than 30% for businesses earning under $1 billion; and
- At least 50% for businesses earning over the $1billion.
BASIC TEST
To determine if you meet the eligibility you will need to test for the revenue reduction in
- Any month from March 2020 to September 2020; OR
- Either quarter commencing 1 April 2020 or 1 July 2020.
To complete this step: We have created a Revenue Projection Template and Instruction Guide (both found in our JobKeeper Document pack) to assist you with these calculations. Simply complete the downloadable template by following the instruction guide to see if you meet the Basic Test eligibility. For assistance, please email your completed Revenue Projection to support@walkerhill.com.au.
If you would like further assistance with your test, please complete the JobKeeper Turnover Test Confirmation Letter Template with the appropriate numbers and return to support@walkerhill.com.au and we will be in touch.
ALTERNATIVE TEST
If your business does not fit into the basic test period criteria outlined below and you believe that you experience the reductions in revue above, you will require an alternative test. Please contact our office for assistance.
Step 3: Check Your Team’s Eligibility as Employees
If your business is eligible for the JobKeeper payments, you must now determine if your employees are. This subsidy applies to most employees who have been employed from 1 March 2020. Some exclusions to this are employees include casuals with less than 12 months regular service, foreign employees (other than NZs on sub class 444 visa) and employee nominated for JobKeeper by another Employer.
To complete this step: Check your employee’s eligibility using the downloadable documents from the pack. The Employee Exclusion document will help to clarify who will and will not be eligible for this scheme. Use this, alongside the Employee Eligibility Check Spreadsheet and Employee Exclusions & Instruction Guide to create a list of your eligible and non-eligible employees.
Step 4: Provide Eligible Employees with a Nomination Notice
You as the employer, must provide your eligible employees with a JobKeeper Employee Nomination Notice. This step ensures that employees are only nominated by one employer.
To complete this step: Download the JobKeeper Employee Nomination Notice from our pack and have your eligible employees complete and return to you.
Step 5: Lodge Your Application
If you are wanting to access the first month of JobKeeper payments, then you will need to submit your application to the ATO via the Business Portal using your MyGovID.
If you are wanting to get access to the first month of payments, you will need to lodge your application by Sunday, 26 April 2020. If you miss this deadline, you can still apply for this subsidy, however, you will no longer be eligible for this first month.
To complete this step: Submit your application through the ATO Business Portal.
If you are successful in your application for the JobKeeper payments, you will need to complete the below step plus monthly reporting to ensure you maintain your compliance for this scheme.
Step 1: Provide Eligible Employees with Confirmation of Nomination
You as the employer, must confirm that eligible employees have been nominated for the JobKeeper Scheme. This must be done in writing and within 7 days of you submitting your application to the ATO.
To complete this step: Complete the Letter of Nomination Confirmation Template and provide this to your employee to confirm that you have received their Nomination Notice and applied for the JobKeeper Scheme for them within 7 days.
Ongoing Step: Monthly Reporting
Once you are successfully participating in the JobKeeper payment scheme, you must report certain information to the ATO each month. This information includes:
- GST Turnover for the reporting month; and
- Projected GST turnover for the following month.
To complete this step: Set reminders in your calendar to report to the ATO through your ATO Business Portal account to ensure you remain compliant.
If you have any questions about the JobKeeper payment scheme or if there is anything that the team at Walker Hill can assist with, please feel free to contact us by emailing support@walkerhill.com.au or calling our team on 07 3367 3155.
