The JobKeeper Scheme – enrolment deadline has been extended to 31 May 2020

The cut-off date to enrol for the initial JobKeeper periods has been extended from 30 April 2020 until 31 May 2020.

According to the ATO website on 29 April 2020  “If you enrol by 31 May, you will still be able to claim for the fortnights in April and May provided you meet all the eligibility requirements for each of those fortnights. This includes having paid your employees by the appropriate date for each fortnight.”

The ATO states (as at 30 April) that businesses are eligible for the JobKeeper payments if:

  • “On 1 March 2020, you carried on a business in Australia or were a not-for-profit organisation that pursued your objectives principally in Australia.
  • “You employed at least one eligible employee on 1 March 2020.
  • “Your eligible employees are currently employed by your business for the fortnights you claim for (including those who are stood down or re-hired).
  • “Your business has faced either a
    • 30% fall in turnover (for an aggregated turnover of $1 billion or less)
    • 50% fall in turnover (for an aggregated turnover of more than $1 billion)
    • 15% fall in turnover (for ACNC-registered charities other than universities and schools).
  • “Is not in an Ineligible category.”

The ATO have also specified that “For the first two fortnights (30 March – 12 April, 13 April – 26 April), we will accept the minimum $1,500 payment for each fortnight has been paid by you even if it has been paid late, provided it is paid by you by 8 May. If you do not pay your staff by this date, you will not be able to claim JobKeeper for the first two fortnights.

“You can enrol and claim for JobKeeper earlier if you choose. For example, you can enrol by the end of April to claim JobKeeper payments for the two fortnights in April.”

To Summarise, the key JobKeeper dates include:

  • 30 March – 12 April – JobKeeper Fortnight 1
  • 13 April – 26 April – JobKeeper Fortnight 2
  • 4 May onwards – identify your employees
  • By 8 May – Meet the wage condition for Fortnight 1 and Fortnight 2. I.e. pay your employees $1,500 for each fortnight to claim JobKeeper payments for April.
  • 26 April – 10 May – JobKeeper Fortnight 3 (meet the wage condition by 10 May)
  • 11 May – 24 May – JobKeeper Fortnight 4 (meet the wage condition by 24 May)
  • By 31 May – Final date to enrol to claim for JobKeeper fortnights in April and May.

Update to The Jobkeeper Rules

On 24 April the Treasurer, the Hon Josh Frydenberg MP, addressed the media to clarify some of the rules around JobKeeper. Whilst the ATO is developing some information and guidance around this update, below is an overview of what is contained in the media release on Federal Government Treasury website. Key changes that may affect many businesses include:

Employees Employed Through A Special Purpose Entity, Rather Than an Operating Entity

“Changes will address the circumstances where business structures use a special purpose entity to employ staff rather than staff being directly employed by an operating entity.”

Charities and The Treatment of Government Revenue

“Charities other than schools and universities can elect to exclude government revenue from the turnover test. revenue, for the purposes of assessing eligibility for the JobKeeper Payment.”

‘One in All In’ Principles

“Once an employer decides to participate in the JobKeeper scheme and their eligible employees have agreed to be nominated by the employer, the employer must ensure that all of these eligible employees are covered by their participation in the scheme. This includes all eligible employees who are undertaking work for the employer or have been stood down. The employer cannot select which eligible employees will participate in the scheme.  As noted in the explanatory statement to the existing rules, this ‘one in, all in’ principle is already a key feature of the scheme and will be made clearer in the rules.”

Other changes include:  Full time students aged 16 and 17 years old, International Aid Organisations, Universities and Religious practitioners.

Support the Banks Have Offered to Help Bridge the Gap Until the JobKeeper Payments Are Made

Another important point within the media release is that the banks have not only agreed to set up special hotlines for businesses that need to  bridge the gap until the JobKeeper payments come in, they have also agreed to bring the JobKeeper-related applications to the front of the queue. The banks will also be working with the ATO to accelerate the financial assessment process.

The information above is subject to change and is based on what is currently available on the ATO and Treasury website. This article has been developed to provide a quick overview of the changes that have been made. We suggest that you keep checking the ATO website for the most current information. If you need help with your JobKeeper application, our Accounting & Advisory team can assist you so, please do not hesitate to contact us.

Disclaimer: The information contained herein is of a general nature only and is not intended to be relied upon nor is it a substitute for appropriate professional advice. Whilst all care has been taken in the preparation of the material, it is not guaranteed to be accurate. Individual circumstances are different and as such, require specific examination. Asparq cannot accept liability for any loss or damage of any kind arising out of the use of or reliance upon all or any part of this material. Additional information may be made available upon request.

Blog tags

Need Assistance?

Contact Asparq Today