JobKeeper – Where to now?

Article by
Philip Martin
PMCA
October 2020

The JobKeeper scheme changed on 27 September. What are the implications for your business?

4 minutes

As most small and medium-sized businesses will know, the JobKeeper scheme –introduced in March 2020 and initially scheduled to wind up in late September –has been extended until 28 March 2021.

It’s not business as usual, though. Alongside the extension, the Federal government also announced some other changes.

JobKeeper payment changes

While JobKeeper remains in place until March 2021, the flat $1500 per fortnight has been scrapped. The overall payment will reduce, and part-timers will receive less than full-time employees.

From 1 October 2020

  • $1200 per fortnight for those who work more than 20 hours per week
  • $750 per fortnight for those working fewer than 20 hours per week

From1 January 2021

  • $1100 per fortnight for those who work more than 20 hours per week
  • $650 per fortnight for those working fewer than 20 hours per week

Some of the new changes are pretty simple to understand, while others are more complicated. If you run an SME (including being a sole trader or partnership),here are some of the major changes explained.

Decline in turnover test

When JobKeeper commenced, businesses had to demonstrate that they had suffered a COVID-19-linked reduction in GST turnover, when compared with their turnover 12 months earlier. The threshold was 30 percent for businesses turning over less than $1 billion and 50 per cent for bigger businesses.

Once a business qualified, it continued to receive JobKeeper payments, regardless of what their turnover was in following months.

This has changed, and a business must meet this decline in turnover test on a month-by-month basis. If you have a big up-tick in turnover in October, you won’t qualify.

An alternative is to measure your turn over over a financial-year quarter, rather than monthly. This may be a better approach if your turnover spikes for just a month, but is generally down. As soon as you register one quarter of turnover where your losses are less than30%, you will no longer qualify for JobKeeper.

Remember that turnover is self-assessed and based on GST turnover. If you know ahead of time the impact of COVID-19measures on your business, you can project ahead in your declaration.

Declaring turnover to the ATO

In your application to the ATO, the following information needs to be provided:

  • Business size: Are you claiming a reduction of 30 per cent or 50 per cent (based on your past annual turnover)?
  • Timeframe: Are you basing your application on a monthly or quarterly decline?
  • Numbers: What are the GST turnover amounts you are comparing?
  • GST turnover: Is your comparison amount actual or projected?

If you have any questions, feel free to get in touch. We’re happy to help

The material and contents provided in this publication are informative in nature only.  It is not intended to be advice and you should not act specifically on the basis of this information alone.  If expert assistance is required, professional advice should be obtained. We are here to help, contact us today:

Philip Martin Chartered Accountant
Phone 1300 744 547 | Web pmca.com.au | Email philip@pmca.com.au
Level 9, 440 Collins Street, Melbourne, Vic 3000

Employee eligibility and flexibility

The main change here is that JobKeeper can now be paid to an employee who commenced with your business prior to 1 July 2020, either full time, or as a long-term casual. When the scheme commenced, the cut-off date was 1 March, so this means that more employees now quality.

If you’ve had to stand down or dismiss staff for any reason since March 1, you can bring them back on board and they’ll qualify for the JobKeeper payment.

 

Details, exclusions and fine print

To summarise all implications of JobKeeper is impractical here: the legislation is long and complicated. Depending on your business you might have questions about:

  • owning multiple businesses
  • stand-downs and changing staff hours
  • top-up eligibility and process
  • employee leave and superannuation entitlements
  • or any other complexity in the scheme.

If you’re not sure how JobKeeper works in your specific situation, please contact Philip at PMCA. He’ll be able to provide clear, independent advice on how JobKeeper can be part of your business recovery strategy.

Take the headache out of complex government policy.

Ready to get on top of your tax and accounting?

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What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

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What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

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What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

link me.