Clients should not act solely on the basis of the material contained in this newsletter. Items herein are general comments only and do not constitute or convey advice per se. Also changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas.
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The Federal Government announced on the 21 July 2020, that it is extending the JobKeeper program for eligible businesses and not-for profit charities by a further 6 months to 28 March 2021.
To be eligible, businesses and not-for-profit charities will still need to satisfy the following decline in turnover tests. However, you will need to show you suffered a decline in turnover using your actual GST turnover rather than projected GST turnover.
The BAS‘s lodged will be used as the assessment for eligibility in decline in turnover.
If your business or not-for profit charity does not meet the decline in turnover for the extension period, this does not affect your eligibility for the program prior to 28 September 2020.
Other eligibility requirements remain unchanged.
JobKeeper Payment Dates
The payment rate is reduced from 28 September 2020 and a further on 4 January 2021.
First JobKeeper Extension Period - 28 September 2020 - 3 January 2021
Note: You will need to satisfy decline in turnover in both the June and September 2020 quarters in comparison to the June and September 2019 quarters.
Second JobKeeper Extension Period - 4 January 2021 - 28 March 2021
Note: You will need to satisfy decline in turnover in each of the June, September and December 2020 quarters relative to the June, September and December 2019 quarters.
The Commissioner of Taxation will have the discretion to set out alternative tests in specific circumstances where it is not appropriate to compare actual turnovers in 2020 with actual turnover.
The JobKeeper payment will continue to remain open to new recipients, provided they meet existing eligibility requirements and the addition turnover tests during the extension period.
The ATO have advised there will be further guidance materials issues, we will of course keep you updates.
If you have any questions or require assistance with this or any of the Government support packages, please contact one of our team members