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.
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
From1 January 2021
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.
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.
In your application to the ATO, the following information needs to be provided:
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
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.
To summarise all implications of JobKeeper is impractical here: the legislation is long and complicated. Depending on your business you might have questions about:
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.
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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!
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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.
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!
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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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.
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!
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.
