The alternative tests for JobKeeper have been Announced. You can find the legislative instrument here. The detailed explanatory notes for these tests can be found here.
We will bring you an update on how to apply this as soon as we can – it’s complex and there are 7 different scenarios covered by these rules including:
- The business commenced before 1 March 2020 but after the relevant comparison turnover period
- Business acquisition or disposal has changed the entity’s turnover
- Business restructure has changed the entity’s turnover
- Business had a substantial increase in turnover
- 50% or more in the 12 months immediately before the applicable turnover period
- 25% or more in the 6 months immediately before the applicable turnover period
- 5% or more in the 3 months immediately before the applicable turnover period
- Business affected by drought or natural disaster
- Business has an irregular turnover
- Sole trader or small partnership with sickness, injury or leave
In the meantime, the ATO confirms that if an entity is able to pass the basic turnover reduction test, then they don’t need to consider the alternative tests (i.e., the alternative tests cannot make an entity ineligible for JobKeeper if they have already passed the basic test).
JobKeeper enrolment extended into May
While the deadline for enrolling in JobKeeper to access payments for the first 2 fortnights was originally the end of April, the ATO now notes, “If you need more time, you have until the end of May to enrol and identify your employees.”
Also, enrolling for JobKeeper late is likely to lead to delays in receiving the funds from the ATO.
Employer relief as time for JobKeeper top-up payments further extended
As many employers still await further details about whether they will qualify for JobKeeper, the Tax Commissioner has extended the time to make payments for the first two fortnights (i.e. 30 March – 12 April and 13 April – 26 April).
Top-up payments to reach the minimum $1,500 payment for each employee for each fortnight will now be accepted until 8 May 2020. Due to the “one in all in” rule, the minimum payment level must be reached for all eligible employees to be entitled to any claim in respect of each fortnight.
The deadline for employers to enrol for the initial JobKeeper periods was also extended from 30 April 2020 until 31 May 2020. (see above)
So now employers have until 31 May to enrol to claim for the fortnights in April and May, provided they meet all the eligibility requirements for each of those fortnights. This includes having paid employees by the due dates for each fortnight as outlined below.
We will bring you further information on the Jobkeeper Alternative Tests very soon.
If any of the above applies to your business and you would like to discuss in details, please contact John Kalachian or Henry Zhao at Fortis Accounting Partners on 02 9267 0108.
