COVID-19 FAQ’s
We’ve had alot of questions about assistance for businesses affected by Covid-19, so we are starting to compile them.
If you have any questions please feel free to email us at hello@optimisedaccounting.com.au
JobKeeper
What is the new JobKeeper payment?
We have created a video here. This covers:
- What is the JobKeeper subsidy?
- Who is an eligible employer/business?
- Who is an eligible employee?
- How will this work?
- How will this work for sole traders and self employed?
- Important things to note
- What we still need to know
- What you can do now
- Some questions that we have received
Do Sole Traders & Self Employed people receive the new JobKeeper payment?
The good news here is that sole traders and other self-employed individuals are eligible for this payment, with the 30% turnover reduction rule still applying.
At this stage, the treasury documents state that non-employing businesses need to nominate an individual to receive the payment. We are awaiting clarity to see how this will work with partnerships and trusts where multiple partners/beneficiaries actively work within the business.
Who is an eligible employer for JobKeeper?
An eligible employer is a business whose turnover has dropped by more than 30% compared to the same period a year ago. (For companies with a turnover of over $1b the reduction must be 50%)
Who is an eligible employee for JobKeeper?
- A full-time, part-time or long term casual employee who is at least 16 years old that was on the books as at 1 March 2020.
For casuals, a long-term casual is an employee who was regularly employed by the employer for at least 12 months as at 1 March 2020. - The employee must be either an:
• Australian Citizen.
• Permanent Visa Holder.
• Protected Special Category Visa Holder.
• Non-protected special category visa holder that has been in Australia continually for 10 years.
• Special Category 444 Visa Holders (NZ Citizens). - Not receiving the JobKeeper payment from another employer.
How do I pay the JobKeeper payment to my employees?
These amounts are paid to employees through your usual payroll cycle.
If an employee usually earns > $1,500/fortnight before tax
Nothing changes in the way you pay the employee – it’s business as usual.
If an employee is earning under $1,500/fortnight before tax
You will need to ‘top up’ their earnings to $1,500 and withhold tax from the full amount.
Superannuation is optional on any top up amount only – which is the additional amount being paid to an employee above of their ordinary earnings to bring the payment up to the $1,500.
When do registrations open for JobKeeper?
Monday 20th April 2020 – They are open now!
When do I get paid from the ATO?
Payments will arrive from the ATO monthly in arrears – JobKeeper payments that you pay to your staff in April will be reimbursed to you in the first week of May. This means that the business must have sufficient cashflow/cash reserves to make the regular payroll payments as well as any top-up amounts.
What about the employees that I’ve already stood down?
If an employee was eligible and was active with you on 1 March 2020, they can be ‘re-hired’ and paid the full JobKeeper payment. The benefit of doing this is you can keep a relationship with the stood down employee, which will allow you to make them productive again as soon as you are able to open.
Should the employment with an employee end at any time during the six month period, you will no longer be eligible to receive the JobKeeper payments for this employee and the ATO will need to be notified.
Does the business and the employee pay tax on the subsidy?
Yes – this payment is taxable to both the employer and the employee.
On the employer side, the employer will recognise the wage subsidy as revenue and the salary payment to the employee as a deduction.
On the employee side, the wage subsidy will add to your taxable income from which your employer withholds tax.
When do I need to register by (if I think I’m eligible for April)?
This date has been extended to 31st May.
Any top-up payments to staff are due 8th May.
Do I need to put all of my employees on JobKeeper?
Yes.
If an employer decides to put one of their eligible employees on JobKeeper, they have to put all of them on.
How do I engage Optimised Accounting to register JobKeeper for me?
We can take care of JobKeeper for you.
Things this service includes:
• Review your figures to advise which test is best for you.
• Review your turnover forecast and assumptions with you.
• Review your employee data spreadsheet to determine employee eligibility.
• Register for JobKeeper on your behalf.
• Monthly review of employee wages to ensure maximum correct claim.
• Provide ATO with monthly turnover and projected turnover figures.
• Provide assistance and support on the JobKeeper scheme.
How do I register for JobKeeper myself?
If you’d like to register yourself, here are some links on the ATO website:
How do I pay out JobKeeper through payroll in Xero?
We have recorded a walkthrough with Xero explaining how to pay your employees in Xero.
Watch it here:
Eligible Employee earning $1,500/fortnight or more than $1,500/fortnight
- No changes to payroll, run your payrun as normal
Eligible Employee earning less $1,500/fortnight
- Click into the eligible employee and prepare their payrun as normal.
- In our example the employee would normally be paid $1,140/fortnight
- Select “+ Add Earnings Line” and choose the Job Keeper Subsidy earnings line.
- Add the difference on top off the employee’s earnings so that the total comes to $1,500. To do this take $1,500 less the regular earnings and this is the Subsidy amount, the payslip should now look like this:
- These payments are taxable to the employee so tax will need to be withheld from their payment.
- Superannuation guarantee is optional on any Job Keeper payments and in this example the employer has opted not to pay SGC.
- The Net amount to be paid to the employee has now calculated along with their leave entitlements
Eligible Employee Stood down
- Click into the stood down employee within the payrun.
- Ensure the employees ordinary hours are entered correctly and the rate is $0/hour. This will allow leave entitlements to continue to calculate based off their hours.
- Select “+ Add Earnings Line” and choose the Job Keeper Subsidy earnings line.
- Enter $1,500 as the fixed amount. The payslip should now look like this:
- These payments are taxable to the employee so tax will need to be withheld from their payment.
- Superannuation guarantee is optional on any Job Keeper payments and in this example the employer has opted not to pay SGC.
- The Net amount to be paid to the employee has now calculated along with their leave entitlements
Where can I find the JobKeeper Employee nomination form?
Where can I find the Letter Confirmation to Employee of JobKeeper nomination?
Where can I find the Employee Eligibility Matrix?
You can download this here.
What are the ATO published JobKeeper pay cycles?
Fortnights
- Fortnight 1: March 30 – April 12; employees must be paid by May 8.
- Fortnight 2: April 13 – April 26; employees must be paid by May 8.
- Fortnight 3: April 27 – May 10; employees must be paid by May 10.
- Fortnight 4: May 11 – May 24; employees must be paid by May 24.
- Fortnight 5: May 25 – June 7; employees must be paid by June 7.
- Fortnight 6: June 8 – June 21; employees must be paid by June 21.
- Fortnight 7: June 22 – July 5; employees must be paid by July 5.
- Fortnight 8: July 6 – July 19; employees must be paid by July 19.
- Fortnight 9: July 20 – August 2; employees must be paid by August 2.
- Fortnight 10: August 3 – August 16; employees must be paid by August 16.
- Fortnight 11: August 17 – August 30; employees must be paid by August 30.
- Fortnight 12: August 31 – September 13; employees must be paid by September 13.
- Fortnight 13: September 14 – September 27; employees must be paid by September 27.
Do I have to pay JobKeeper according to the published fortnight pay cycles?
No, you can adapt JobKeeper to your existing payroll cycle. However, you need to be mindful to ensure that each employee is PAID at least $1,500 per fortnight per the ATO schedule/
How this works.
Weekly pay cycles.
For the 2 weekly pays that will be in each JobKeeper pay cycle you can either:
a) Pay staff a minimum of $750 each week
b) In the first week of each fortnight, pay their normal pay and on the 2nd weekly pay of each JobKeeper fortnight do a top-up to ensure at least $1,500 was paid in each JobKeeper Cycle.
Fortnightly Cycle that doesn’t match Jobkeeper
Ensure that each employee is paid at least $1,500 in each of your regular payruns that falls within the JobKeeper fortnights.
Monthly pay cycles.
If your pays are monthly, you need to ensure you have two options:
a) $3,000 per month for every month except August which will require $4,500 (a 3rd ‘fortnightly’ pay day occurs in August). (Recommended)
b) $3,250 per month for April – September (Note: the ATO will only reimburse you $3,000 per fortnight for every month except August, where you’ll be reimbursed $4,500)
This smooths out the August additional payment over the 6 months.
Can a 16–17 year old student qualify for JobKeeper?
If they are a full time student, who is NOT classed as financially independent, no.
If they are a full time student, who IS classed as financially independent, yes.
Will the JobKeeper income be treated as taxable income? In other words, should we be putting a portion aside from the payments for income tax to be payable?
Yes, it’s taxable income
Does our revenue need to stay below 30%?
Whilst we need to report revenue each month to the ATO, it will not change your eligibility.
Once you are eligible for JobKeeper payments, you are eligible for the entire time (til end September 2020).
Are JobKeeper top-ups exempt from payroll tax?
Yes.
Any additional payments that an employer makes to bridge the gap between their employee’s normal wage and the $1500 a fortnight required to qualify for JobKeeper payments are now exempt from payroll tax.
For employees who have been stood down, the full $1500 payment is exempt.
How do I reconcile my JobKeeper payment?
We have created a ‘JobKeeper’ account code in your chart of accounts.
Simply hit ok!
How long will JobKeeper go on for?
At this stage JobKeeper is in place for 6 months (till end September 2020).
However, the government and ATO may change the length of time JobKeeper is available for employers.
What is the deadline for JobKeeper monthly reporting?
14th day after the end of the month (e.g., 14 June deadline for May).
The Commissioner has granted a deferral for the requirement to lodge the monthly declaration to the ATO for JobKeeper purposes. The ATO has extended the deadline from the 7th day after the end of the month to the 14th day after the end of the month (e.g., 14 June deadline for May).
However, the ATO has indicated that JobKeeper payments will be made depending on the time this declaration is lodged. That is, the earlier this step is completed from the 1st day of each month the earlier businesses will receive their payments for the JobKeeper fortnights for that month.
More Information
Why do I need to do JobKeeper reporting?
Monthly JobKeeper reporting doesn’t affect your eligibility, it is for statistics purposes for the ATO.
JobKeeper & Termination payments
An employment termination payments (ETP) is a lump sum payment made to an employee when their job is terminated. ETP’s are generally made up of unused sick leave or unused rostered days off, payment in lieu of leave, genuine redundancy payments, etc.
For some employers, JobKeeper will not be enough to keep the employee employed. If you do need to let staff go, the ATO has stated that from JobKeeper fortnights from 8 June onwards until the end of the scheme, ETPs cannot be included as part of the $1,500 an employer needs to pay to eligible employees to access JobKeeper payments.
If any JobKeeper payments include an ETP to a terminated employee between 30 March to 7 June, the ATO has stated that it will not recover an overpayment.
JobSeeker
How do I register my intent to claim for JobSeeker (Newstart allowance)?
We have created a short walk through MyGov below:
Cashflow Boost
I can’t afford to pay my BAS this quarter, should I lodge anyway?
Yes, in fact it is potentially more important than ever to ensure your BAS lodgements are up to date. The reason for this is that the Government’s Cash Flow Boost system is administered using the BAS system – you must lodge your activity statement to receive the Cash Flow Boost! See more about the Cash Flow Boost here.
Even if you are not eligible for the Cash Flow Boost, the ATO has also advised that they are offering tailored support on a case by case basis if you or your business has been affected by Covid. Some of the measures they have outlined as potential assistance are things like remittance of interest and penalties, low interest payment plans, changing the GST reporting cycle (if you are due GST refunds you can potentially move to monthly reporting to get quicker access to your refund), and payment deferrals.
If your lodgements are up to date you will be in a good position to discuss these possibilities with the ATO so keep up with your lodgements, and we can work with you and the ATO regarding payment if you have been affected by Covid.
When do the payments commence for the PAYG cashflow boost?
28th April
Trainee/Apprentice Subsidy
Apprentice & Trainee subsidy – What do I get and how can I get it?
Registrations commence early April – through an Australian Apprenticeship Support Network provider. (MEGT / training organisations).
- 50% of the apprentice or trainees wage for 9 months (Jan – Sep 2020).
- $7k per quarter paid to the employer ($21k receivable in total).
- Employer must have fewer than 20 FTE employees.
- Apprenticeship must have started prior to 1 March 2020.
Transferable to new employer if apprentice is displaced.
Watch this video for more:
Superannuation
What is the eligibility criteria for early access to my Superannuation?
To apply for early release, applicants must satisfy any one or more of the following requirements:
- They are unemployed.
- They are eligible to receive a job seeker payment, youth allowance for jobseekers, parenting payment (which includes the single and partnered payments), special benefit or farm household allowance.
- On or after 1 January, either:
- they were made redundant
- their working hours were reduced by 20% or more
- if they are a sole trader, their business was suspended or there was a reduction in their turnover of 20% or more
To gain access to this, you need to register your intention to withdraw Super with MyGov. A link to view this can be found in question 3 (below)
How do I register my Intention to redraw my super?
We have created a walk through in MyGov.
Watch below (from 3 minutes in):
Do I still need to pay my staff their Super on time?
Short answer, yes.
The ATO will still issue penalties for any late payments of employees super, even by one day.
Superannuation is due on 28th April.
BAS
I can’t afford to pay my BAS this quarter, should I lodge anyway?
Yes, in fact it is potentially more important than ever to ensure your BAS lodgements are up to date. The reason for this is that the Government’s Cash Flow Boost system is administered using the BAS system – you must lodge your activity statement to receive the Cash Flow Boost! See more about the Cash Flow Boost here.
Even if you are not eligible for the Cash Flow Boost, the ATO has also advised that they are offering tailored support on a case by case basis if you or your business has been affected by Covid. Some of the measures they have outlined as potential assistance are things like remittance of interest and penalties, low interest payment plans, changing the GST reporting cycle (if you are due GST refunds you can potentially move to monthly reporting to get quicker access to your refund), and payment deferrals.
If your lodgements are up to date you will be in a good position to discuss these possibilities with the ATO so keep up with your lodgements, and we can work with you and the ATO regarding payment if you have been affected by Covid.
Business Support Grant
What is the Business Support Grant?
A $10K grant from the government, for Victorian businesses.
The government have extended the eligibility for the ‘Business Support Grant’ to include JobKeeper eligible businesses who employ staff. You need to have a turnover above $75K, with a payroll below $650K.
When do I need to apply by?
1st June 2020
Will Optimised Accounting do this for me?
If we applied for JobKeeper for you, yes we will do this for you if we think you are eligible.
Instant Asset Write-Off
How much is the instant asset write-off?
$150K
What are the rules about a tax write off for a sole trader for cars?
Currently Sole Traders can write off assets up to $150,000 until the 30th June 2020, although a lower cap applies for vehicles.
The car limit for writing off a vehicle is $57,581 so any vehicle under this cap can be fully written off by the percentage it is used for business purposes.
This expense lowers the amount of income you are taxed on.
When does the instant asset write off finish?
This was due to end with the EOFY however has been extended to 31st December 2020.
HomeBuilder Grant
How much is this grant?
$25K
Is it tax free?
Yes
Who will be distributing this?
The revenue office of the State or Territory where you live or plan to live.
What is the individual eligibility?
To be eligible you need to be:
- An individual (not a company or trust); and
- 18 years of age or older; and
- An Australian citizen.
And, you need to meet the income test. To be eligible, you cannot earn more than:
- Individuals – $125,000 based on your 2018-19 or later tax return
- Couples – $200,000 based on both of your 2018-29 or later tax returns
What is the building project eligibility?
The building contract must be signed between 4 June 2020 and 31 December 2020. And, the construction or renovation must commence within three months of the contract date.
Business Survival Package –
Business Support Fund
How much is this grant?
- $10,000 for employing businesses in metropolitan Melbourne and Mitchell Shire in recognition of spending longer under restrictions
- $5,000 for employing businesses in regional local government areas (except Mitchell Shire)
How do I apply?
What type of businesses can apply for this grant?
(this is the original criteria, from August this may change. We’ll update when we know)
Businesses can apply where they meet all the criteria listed below. They must:
- operate a business located in metropolitan Melbourne or Mitchell Shire
- be a participant in the Commonwealth Government’s JobKeeper Payment scheme
- employ people
- be registered with WorkSafe on 30 June 2020
- have an annual payroll of less than $3 million in 2019-20 on an ungrouped basis
- be registered for Goods and Services Tax (GST) as at 30 June 2020
- hold an Australian Business Number (ABN) and have held that ABN at 30 June 2020
- be registered with the responsible Federal or State regulator.
Businesses that have received funding from other components of the Victorian Government’s Economic Survival Package are eligible to apply for this program.
Business owners that do not employ people (non-employing businesses) are not eligible for funding through this program.
When does this grant close?
Applications for the program close on 14 September 2020.
I already applied for this grant, do I need to apply again for the additional $5K
No.
The additional $5K should come through automatically.
JobKeeper 2.0
If my business is no longer eligible, what do I need to do?
- Advise your employees and business participant. For anyone receiving JobKeeper payments from your business, you should advise them in writing that the business is no longer eligible, JobKeeper payments ceased on 27 September 2020, and their pay will revert to the conditions that apply under their employment agreement. This is particularly important for those who have been receiving top-up payments.
- Ensure payroll adjusts – Double check your payroll to ensure that top-up JobKeeper payments have been removed from 28 September 2020 onwards.
Make sure you keep all of your records relating to JobKeeper including your calculations and rationale for the decline in turnover test, your employee JobKeeper nomination forms, and any other records for at least five years.
What are the turnover tests?
30 March to 27 September 2020
Projected GST turnover for a relevant month or quarter is expected to fall by at least 30% compared to the same period in 2019.*
28 September to 3 January 2021
Actual GST turnover in the June and September 2020 quarters fell by at least 30% compared to the same periods in 2019. The decline for both of the quarters needs to be met to continue receiving JobKeeper payments.
4 January 2021 to 28 March 2021
Actual GST turnover in the June, September and December 2020 quarters fell by at least 30% compared to the same periods in 2019. The decline for all three of the quarters needs to be met to continue receiving JobKeeper payments.
* Alternative tests potentially apply where a business fails the basic test and does not have a relevant comparison period.
What are the payments?
30 March to 27 September 2020
$1,500 per fortnight per employee
$1,500 per fortnight per employee
28 September to 3 January 2021
- $1,200 per fortnight per employee or business participant who worked > 20 hours per week
-
$750 per fortnight per employee or business participant working < 20 hours per week
4 January 2021 to 28 March 2021
- $1,000 per fortnight per employee or business participant who worked > 20 hours per week
- $650 per fortnight per employee or business participant working < 20 hours per week
How long will JobKeeper 2.0 run for?
From 28th September until 28 March 2021
What are the fortnights?
Fortnights – Eligibility period 2
(28 September 2020–17 January 2021)
High rate: $1,200
Low rate: $750
- 28 September 2020 – 11 October 2020
- 12 October 2020– 25 October 2020
- 26 October 2020 – 8 November 2020
- 9 November 2020 – 22 November 2020
- 23 November 2020 – 6 December 2020
- 7 December 2020 – 20 December 2020
- 21 December 2020 – 3 January 2021
Fortnights – Eligibility period 3
(4 January 2021–28 March 2021)
High rate: $1,000
Low rate: $650
- 4 January 2021 – 17 January 2021
- 2218 January 2021 – 31 January 2021
- 231 February 2021 – 14 February 2021
- 2415 February 2021 – 28 February 2021
- 251 March 2021 – 14 March 2021
- 2615 March 2021 – 28 March 2021
What’s the 10% decline in turnover test?
The 10% decline in turnover test is a test that enables employers previously participating in JobKeeper to continue to use the JobKeeper provisions (with some modifications) under the Fair Work Act. These employers are ‘legacy employers’. This test does not impact on your business’s eligibility to receive JobKeeper payments, it only impacts on an employer’s use of the JobKeeper provisions under the Fair Work Act.
If an employer qualifies under the 10% test, they can:
- Issue JobKeeper enabling stand down directions (with some changes)
- Issue JobKeeper enabling directions in relation to employees’ duties and locations of work
- Make agreements with employees to work on different days or at different times (with some changes).
Employers can continue to utilise the JobKeeper provisions if they:
- Previously participated in the JobKeeper scheme but no longer qualify (or choose not to participate) from 28 September 2020, and
- Can demonstrate at least a 10% decline in turnover for a relevant quarter and get a certificate from an eligible financial service provider (small business employers can make a statutory declaration).
To meet the turnover test, a legacy employer needs to demonstrate at least a 10% decline in actual GST turnover for the quarter in 2020, when compared to the same quarter in 2019. See Legacy employers on the Fair Work Ombudsman’s website.
Is my business eligible from 28th September?
Existing JobKeeper participants need to pass the extended decline in turnover test to continue to receive JobKeeper payments on behalf of employees. This extended test looks at your actual GST turnover for the September 2020 quarter (for JobKeeper payments between 28 September to 3 January 2021), and again for the December 2020 quarter (for payments between 4 January 2021 to 28 March 2021).
To pass the extended decline in turnover test, your business will need to show an actual decline in turnover between the September 2020 quarter (July, August, September 2020), and the same period in 2019 by 30% (15% for ACNC registered charities and 50% for large businesses).
My business has not received JobKeeper previously. Can we get it now?
If your business passes the eligibility criteria, you can access JobKeeper when you need it for your eligible employees. For JobKeeper, your business needs to pass the eligibility tests for the period you are seeking to claim JobKeeper payments.
My business can’t pass the decline in turnover test because we were impacted by a natural disaster/drought in 2019
Special rules exist to ensure that businesses trading (or partially trading) in a region impacted by natural disasters or drought in 2019 are not detrimentally impacted when calculating the decline in turnover tests. Assuming the drought or disaster impacted your GST turnover, the alternative test enables you to use a period in the year immediately preceding the year in which the drought or natural disaster was declared for the decline in turnover test comparison. This is, if your business was impacted by drought/disaster in the September quarter of 2019, you can use the September quarter of 2018 for your comparison period. If 2018 was also a drought/disaster zone, you can keep going back until the first year preceding the declaration of drought/disaster.
To use this test, your region must be subject to a formal declaration of drought or disaster (for example from Government) or have been publicly identified by an agency such as the Bureau of Meteorology.
My business fails the test because its turnover is ‘lumpy’
If your business has ‘lumpy’ or irregular turnover, there is an alternative decline in turnover test that you might be able to apply. This test only applies if your GST turnover is irregular, like what often occurs in the building and construction industry, and not simply a seasonal variation. To understand if your turnover is irregular, look at the 12 months before the test period and divide the 12 months into 3 month periods. If the lowest GST turnover for any of these 3 month periods is no more than 50% of the highest of the 3 month periods, then the test can be applied as long as your business’s turnover is not cyclical. Alternatively, you can look at the 12 months before 1 March 2020 instead of the 12 months immediately before the test period.
If your GST turnover is irregular you can compare your current GST turnover for the test period with the average current GST turnover for the 12 months immediately before the applicable test period or 1 March 2020, multiplied by 3.
My business is a new business without a 2019 comparison period. Can it receive JobKeeper payments?
If the business is a new business that started trading after 1 March 2020, the business will not be eligible for JobKeeper payments (although there are special rules for not-for-profit or registered charities in some circumstances).
If your business started trading before 1 March 2020 but after 1 July 2020, there are alternative tests you can use to determine whether your business is eligible for JobKeeper payments from 28 September 2020:
- Comparing the actual GST turnover for the test period with the turnover of the 3 months immediately before 1 March 2020 (for example, comparing the September quarter 2020 with the 3 months prior to 1 March 2020).
- Comparing actual GST turnover for the test period (for example, the September quarter 2020) with the average turnover since the entity commenced (using whole months).
What happens if a business restructure (or sale or acquisition) impacts on your numbers?
An alternative decline in turnover test is available where there has been a disposal or acquisition of part of the business, or restructure in the business, or combinations of those, and this changed the entity’s current GST turnover.
The alternative test compares the GST turnover for the test period with the current GST turnover for the relevant month immediately after the disposal, acquisition or restructure, multiplied by 3. If there is not a whole month after the last acquisition, disposal or restructure, and before the turnover test period, then the month immediately before the turnover test period is used.
Where there have been multiple disposals, acquisitions or restructures, you can use the whole month immediately after any of the disposals, acquisitions or restructures, multiplied by 3 for the alternative test.
What happens if fast pre COVID-19 growth makes the comparison period unrealistic?
If your business was experiencing strong growth before the pandemic hit, your comparison period numbers can be skewed. This alternative test is for entities with substantial pre COVID-19 growth. First you need to test if your growth is considered substantial. That is, GST turnover increased by:
- by 50% or more in the 12 months before the turnover test period or before 1 March 2020, or
- by 25% or more in the 6 months before the turnover test period or before 1 March 2020, or
- by 12.5% or more in the 3 months before the turnover test period or before 1 March 2020.
If there is substantial growth and you used the period immediately before the turnover test period to determine whether there is a substantial increase in turnover, then the alternative test compares GST turnover for the test period (for example, the September 2020 quarter) with turnover for the 3 months immediately before the test period.
If you are using the period immediately before 1 March 2020 to determine whether there is a substantial increase in turnover, then the alternative test compares GST turnover for the test period (for example, the September 2020 quarter) with turnover for the 3 months immediately before 1 March 2020.
I am a sole trader (or partnership) impacted by illness, injury or leave
For sole traders and small partnerships (4 partners or fewer) with no staff, your income is often impacted by your ability to work. If your comparison period is impacted by illness, injury or leave, you can use the month immediately before the month with sickness, injury or leave is used, then multiplied by 3.
Does the business need to re-enrol?
Your business does not need to re-enrol if it is already receiving JobKeeper payments. Employers continuing to receive JobKeeper payments will need to:
- Advise the ATO of the payment tiers of eligible employees (or your business participant), and
- Advise your eligible employees of the payment tier that is applicable to them.
Make sure you keep records of your calculations for the decline in turnover test, and the JobKeeper payment tiers for employees.
What happens if the employee’s hours were different to normal in the reference period?
Alternative tests are available where:
- The reference period is not typical of the employee’s hours or you use a rostering system and there is no typical pattern in a 28 day period – use an earlier 28 day period or multiple 28 day periods that more accurately represent the employee’s typical arrangements. That is, you select the next 28 day period before 1 March 2020 or 1 July 2020 that represents the employee’s typical employment pattern. For workers that don’t have a typical pattern because of a rostering system like fly-in-fly-out workers, an average of the hours worked over the employee’s rostering schedule and proportionally adjusted over 28 days can be used to work out a typical 28-day period.
- The employee started work during the reference period. Use a forward-looking alternative test. In these circumstances, use the pay cycle immediately on or after 1 March 2020 or 1 July 2020. For employers with fortnightly or weekly pay cycles, you must use consecutive weeks. Where an employee was stood down, use the first 28 day period starting on the first day of a pay cycle on or after 1 March 2020 or on or after 1 July 2020 in which they were not stood down.
What happens if the employee’s salary is not linked to hours?
Some employees will automatically qualify for the higher JobKeeper payment rate. To qualify for the higher rate, these employees: were paid at least $1,500 in the reference period; were required to work at least 80 hours under an industrial award, enterprise agreement or contract; or, it is reasonable to assume that they worked at least 80 hours during the applicable period.
What about directors and partners in a partnership?
Business participants (sole traders, the self-employed with an ABN, or one partner in a partnership, beneficiary of a trust, or director/shareholder), must use the month of February 2020 (the whole 29 days) as their test period. The test looks at the number of hours you were actively engaged in the business – actively operating the business or undertaking specific tasks in business development and planning, regulatory compliance or similar activities.
Other than sole traders, a business participant must provide a declaration to the business entity confirming their hours worked over the reference period. Sole traders need confirm details with the ATO.
Where February 2020 was not typical, you can use the next typical 29 day period, or if you commenced during February, March 2020.
My employer is no longer eligible for JobKeeper. Can I receive JobKeeper from another employer?
Employees and business participants can normally only have one nominated employer for the JobKeeper scheme (ever). If your nominated employer is no longer eligible for JobKeeper payments, you cannot be a nominated employee of another employer. The main exception to this is where the individual ceased to be employed or actively engaged in the business (as a business participant) of the original entity after 1 March 2020 but before 1 July 2020. They must also have met the conditions to be treated as an eligible employee of the new employer at 1 July 2020.
Business Costs Assistance Program
(Circuit breaker grant)
How much is this grant?
$2,000
Who can apply for this grant?
To be eligible, you must:
- be located within Victoria
- be registered as operating in an eligible industry sector identified in the list of Eligible ANZSIC classes (as defined by the industry classification linked to the business’ ABN)
- have incurred costs (as outlined in Section 5 of the guidelines) as a direct result of the circuit breaker action announced on 12 February 2021
- have an annual Victorian payroll of up to $3 million in 2019-20 on an ungrouped basis
- be registered for goods and services tax (GST) on 12 February 2021
- hold an Australian business number (ABN) and have held that ABN at 12 February 2021.
What do I need to do to apply for this grant?
When applying for this grant you will need:
- a valid Australian business number (ABN) for your business in one of these eligible business sectors. The ANZSIC class linked to your ABN registration must be one of these eligible sectors.
- to confirm and attest to the costs you incurred, and commit to retaining evidence of applicable costs for 12 months.
- if you employ people, your WorkCover Employer Number (WEN) or, if this is yet to be issued, a WorkSafe Application Reference Number (WRN).
- if you do not employ people, details of a current proof of identity document (Australian driver’s licence, Australian passport, Medicare card and Australian visa information and foreign passport).
Please make sure your ABN registration information and, where required, ASIC registration, or relevant regulator information, is current.
Incomplete or incorrect information may delay your application assessment. Please complete the application correctly and provide all relevant documentation.
How do I apply?
The program will be open for applications until the date the program funds are exhausted or 11:59 pm on 16 March 2021, whichever is earlier.
When does this grant close?
The program will be open for applications until the date the program funds are exhausted or 11:59 pm on 16 March 2021, whichever is earlier.
