COVID19 Update – JobKeeper

JobKeeper

As you will be aware, the Bill introducing the JobKeeper payment passed through all stages of Parliament on 8 April 2020. The Bill provides for a payment of $1,500 for each Eligible Employee where the business turnover will or has reduced by more than 30% for businesses with a turnover of less than $1 billion, or 15% …

As you will be aware, the Bill introducing the JobKeeper payment passed through all stages of Parliament on 8 April 2020.

The Bill provides for a payment of $1,500 for each Eligible Employee where the business turnover will or has reduced by more than 30% for businesses with a turnover of less than $1 billion, or 15% for not for profits.

If you are an NCA client, we will be contacting you in the next few days to discuss your eligibility for the JobKeeper payments. There is a very tight deadline to apply for the scheme, with applications to be lodged by 30th April.

We suggest that you start to formulate the following information:

  • GST turnover for each of the months April to June 2019, for each month and the quarter as a whole
  • GST turnover is not necessarily the amount reflected at G1 of your activity statement, net of GST, unless you report on an Accruals basis
  • GST turnover is the amount that you have sold in a period, net of GST. Please let us know if you require assistance obtaining this information from your accounting system.
  • Forecast your turnover (sales) for each of the 3 months April to June 2020, and for the quarter as a whole.
  • Consider who are eligible employees (see definition below), and detail how much they are paid gross each pay period.

Please contact us if you require assistance putting this information together.

We will be in contacting NCA clients during the week with more information in relation to the application process, but as time is very tight to make the application, please call us to discuss your eligibility if you have any questions in the meantime.

Eligible Employee

Eligible employees are defined as employees who:

  • were employed by the employer at 1 March 2020;
  • full-time, part-time, or long-term casuals (a casual employed on a regular basis for longer than 12 months as at 1 March 2020);
  • are at least 16 years of age at 1 March 2020;
  • meet the residency requirements as follows:
  • must be an Australian citizen / permanent resident and any other visa subclasses where they are considered resident under section 7 of the Social Security Act; or
  • Be a holder of a subclass 444 visa and be a resident of Australia for income tax purposes.

the individual is

  • Not in receipt of a JobKeeper Payment from another employer.
  • Not in receipt of paid dad and partner pay
  • Not totally incapacitated and receiving worker’s compensation during the relevant period
  • In practical terms, the persons who miss out from the payment include individuals on temporary visas and casual workers who were employed for less than one year.

We will be continuing to monitor the quickly evolving landscape and keep you updated but if you have any questions regarding the above you can contact us here.

Thank you for your continued support and we hope you all stay safe.