However, Fair Work Act amendments will apply in a limited way to ‘legacy employers’ that have been eligible to participate in the initial JobKeeper scheme, but are no longer eligible following 27 September 2020. This effectively requires businesses to follow the same timing basis for recognising supplies as used when completing their BAS. Things start to improve with increased bookings and demand towards Christmas. The following classes of entities are eligible to apply an alternative test: an entity that commenced business after the relevant comparison period in 2019, an entity that acquired or disposed of part of their business after the relevant comparison period in 2019, an entity that has restructured part or all of their business after the relevant comparison period in 2019, including more than one restructure, and that restructure(s) has changed the entity’s turnover. The recent national controversy over unfunded federal mandates has put state sovereignty, the idea that each of the 50 states is a sovereign political authority, back on the national agenda. The ATO has extended the time for which the monthly declaration can be provided to the ATOso it can be lodged within 14 days of the end of each calendar month, with the exception of the declaration for the month of April which was due by 31 May 2020. The JobKeeper scheme is progressive in that it benefits the low-paid or stood-down worker relatively more and is ... a sovereign entity, a company where a liquidator is appointed, an individual where a trustee in bankruptcy has been appointed. The eligible employer must pay those eligible employees a minimum amount equivalent to the JobKeeper payment per fortnight (before tax) in line with its existing pay cycle through existing payroll systems and continue to pay them for as long as the employer claims JobKeeper. Employers must meet eligibility rules to be able to register for the JobMaker Hiring Credit scheme and claim payments. Your due date will depend on whether your reporting cycle is monthly, quarterly or annual. The eligible employees must agree to be nominated by their employer and receive payments under the program. Example – Up to date with recent lodgments but not with past lodgments. its current GST turnover for the reporting month and projected GST turnover for the following month (special reporting requirements apply where the employer utilises the modified test for employee entities within a group); and. you have a lodgment deferral in place for your income tax or GST returns. This “wage condition” does not apply where the entity is receiving JobKeeper payments in respect of an eligible business participant. If the entity is a member of a GST group, intra-group supplies are generally ignored. They have qualified for the first quarter of the JobKeeper extension (for fortnights commencing on or 28 September 2020). As part of the nomination process, employees are required to confirm that they have not agreed to be nominated by any other employer/entity and have not given another entity a nomination form for the purpose of the program. The ATO has released Practical Compliance Guideline PCG 2020/4 setting out how it will apply its compliance resources to schemes designed to obtain access to the JobKeeper payment. You must make a claim within the claim period after each JobMaker period ends. Guidance on tax obligations and relief for individuals affected by COVID-19. For example, to make a claim for JobMaker period 1 (7 October 2020 to 6 January 2021), your STP reporting should be up to date by 27 April 2021, three days before the end of the claim period on 30 April 2021. You need to report: Information about the employees you intend to claim for will be populated from your STP report. This means that employees who were eligible for the JobKeeper program before 3 August 2020, continue to be eligible for JobKeeper fortnights beginning on or after 3 August 2020. View our one-page summary for more information on the latest JobKeeper payment updates. For any business that has already enrolled to participate in JobKeeper and that has additional employees that become eligible using the 1 July test time (including casuals who may now meet the definition of a long-term casual), an employee nomination notice must be provided to all of those newly eligible employees. Cliff’s Cinemas is a new business that started on 6 December 2020. An employer is not entitled to the JobMaker Hiring Credit scheme for a JobMaker period if any of the following apply. The Commissioner has made a legislative instrument that aligns the time of supply under the  current GST turnover for the actual decline in turnover test with how entities would attribute GST payable on the supplies to a tax period according to the GST law. Both the alternative and modified tests (as mentioned above) are available to use when calculating the actual decline in turnover. © Australian Taxation Office for the Commonwealth of Australia. The Fair Work Act 2009 (Cth) was amended in April 2020 to effectively require an employer to ensure that wage conditions are met in respect of eligible employees where the employer otherwise qualifies for the JobKeeper program. If you submit lodgments or information close to the time you make a claim, your lodgments may still be processing when you claim. The following entities (excluded entities) are not eligible for the payment: An entity that is subject to the Major Bank Levy, or that is a member of a consolidated group where another member of the group is subject to the Major Bank Levy. The director would not qualify as an eligible additional employee. an Australia resident within the meaning of the Social Security Act 1991 (which includes an Australian citizen, the holder of a permanent visa, and a special category visa holder who is a protected SCV holder) or a Special Category (Subclass 444) Visa Holder who was also a resident of Australia for tax purposes. Two have received the JobSeeker payment, two received Youth Allowance (other) and one received the Parenting payment. As the economy recovers from the challenges posed by the Coronavirus, it is intend… any JobMaker period that ends after the termination or reduction in hours occurred, Supporting Apprentices and Trainees Wage subsidy, Boosting the Apprenticeship Commencements Wage subsidy. This outlines three key principles to guide businesses on what the ATO considers to be best practice in terms of substantiating claims for JobKeeper payments: Principle 1: Leverage existing corporate governance where possible. Under the extended JobKeeper program applicable for an additional six months from 28 September 2020 through to 28 March 2021, there is a lower two-tier payment structure and a requirement for employers to retest eligibility based on actual decline in turnover to continue to access the payment. You will need to remain up to date with your lodgments throughout the scheme to stay eligible. You should engage with us early so we can help you manage your debt. With effect from 3 August 2020, the test date was changed from 1 March 2020 to 1 July 2020 to allow additional employees to be brought into the program. Employers will need to be careful in considering whether flexibility provisions are appropriate having regard to existing arrangements with their employees, and their continuing JobKeeper participation status. For the period 28 September 2020 to 3 January 2021, businesses and not-for-profits will need to demonstrate that their actual GST turnover has fallen by the requisite percentage for the September 2020 quarter relative to the comparable period in the prior year. This lower threshold does not apply to universities and non-government schools that are registered charities - these entities will have to apply the 30 per cent or 50 per cent threshold in the same way as other businesses. From 28 September 2020, the JobKeeper payment will change to a two-tiered structure as follows: Eligible employee who had total hours of work and paid leave or public holidays (or an eligible business participant was actively engaged in the business) of  80 hours or more in the “reference period” - “higher rate”, Al other eligible employee and business participants  - “lower rate”, JobKeeper fortnights from 28 September 2020 to 3 January 2021, JobKeeper fortnights from 4 January 2021 to 28 March 2021. These provisions are subject to reasonableness and consultation requirements. If you have lodged late in the past, you may still be eligible for payments provided they are lodged by the time you submit your claim. the alternative test (if applicable) does not also need to be satisfied. Sovereign entities (including foreign governments and their agencies, and all wholly owned entities - noting that this was changed in the legislative instrument made 1 May 2020 to now exclude both Australian resident and non-resident wholly owned entities), and. Deputy Secretary Judith Wright explains the key changes to JobSeeker, JobKeeper and Paid Pandemic Leave for ASU members. At the end of the first JobMaker period (6 January 2021), both employees are still employed with A Co. No additional employees have been hired. Setup mygov and link to ATO online services, Amounts you don't need to include as income, Occupation and industry specific income and work-related expenses, Financial difficulties and serious hardship, Instalment notices for GST and PAYG instalments, Your obligations to workers and independent contractors, Encouraging NFP participation in the tax system, Australian Charities and Not-for-profits Commission, Departing Australia Superannuation Payment, Small Business Superannuation Clearing House, Annual report and other reporting to Parliament, Complying with procurement policy and legislation, JobMaker documents to give your tax or BAS agent, up to date with income tax and GST returns, www.dese.gov.au/employment/financial-incentives-employers, up to date with lodging your income tax and GST returns, Due dates for lodging and paying your BAS, Aboriginal and Torres Strait Islander people, has registered for the JobMaker Hiring Credit scheme, is a not-for-profit organisation operating in Australia. We cannot process claims and payment until we verify your lodgment obligations have been met. Best Accommodation have lost some staff over the year, with some moving closer to family, others starting alternate employment and some returning to study. Best Accommodation has been receiving JobKeeper payments for its staff since April 2020. The term ‘sovereign entity’ is defined as a body that is wholly-owned by a foreign country or foreign government agency. Aggregated turnover is an entity… This means your payment will be delayed for up to 28 days. To remain eligible for future JobMaker Hiring Credit payments, Cliff’s Cinemas will need to keep up to date with ongoing lodgments. You must report the following information in STP for each employee you intend to claim for: There are a number of ways to report information to us through STP. For the period from 30 March 2020 to 27 September 2020, the JobKeeper payment available to eligible businesses is AUD1,500 per fortnight, per eligible employee or eligible business participant. Before an eligible employer applies for the JobKeeper Payment, it must notify its eligible employees of the intention to participate in the program. Additionally, a company that is in liquidation, or a partnership, trust or sole trader in bankruptcy, will not be eligible. There are multiple eligibility criteria to access the JobKeeper payment. They register for an ABN on the same day. it must meet the relevant decline in turnover test(s) and not be an excluded entity. Decline in turnover - alternative and modified tests. Complete your claim through ATO online services or the business Portal to check you do not need report... Pre-Filled in the claim form for each JobMaker period you make a claim and remain eligible for future JobMaker Credit. 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