To all our valued clients and friends of Indigo Financial and Global Business Camps.
We have a number of newsletters that we have sent out recently on all of the stimulus packages. Please go to https://www.indigofinancial.com.au/news/ to view these and more.
We encourage you to contact our office on 08 8212 8585 or via email firstname.lastname@example.org. We are here to assist you through these stimulus package measures and much more.
Thank you to our clients and friends who have already and continue to contact our office regarding these measures.
If you have not contacted our office and require clarification, re-assurance or need assistance, please contact us either by telephone or e-mail so that we can assist you.
Note as many of the measures are based on lodging your March, monthly or quarterly, PAYG Withholding; our office can assist in:
- Completing and lodging the BAS and PAYG Withholding statement
- Reviewing and confirming your figures before your lodgement
- Confirming the reduced BAS amount to pay (or refund expected), due to these measures
$1,500 JobKeeper subsidy to keep staff employed
Eligibility:To be a part of the subsidy, employers will need to ensure that their employees receive at least $1,500 per fortnight (before tax). See the example below.A subsidy of $1,500 per fortnight per employee, administered by the ATO, will be paid to businesses that have experienced a downturn of more than 30% (50% for businesses over $1bn).
There are two levels of eligibility; for employers and employees.
Eligible employers are those with:
- Turnover below $1bn that have experienced a reduction in turnover of more than 30% relative to a comparable period 12 months ago (of at least a month); or
- Turnover of $1bn or more that have experienced a reduction in turnover of more than 50% relative to a comparable period 12 months ago (of at least a month); and
- Are not subject to the Major Bank Levy.
Sole traders and the self-employed with an ABN, and not-for-profits (including charities) that meet the turnover tests are eligible for the JobKeeper payment.
Eligible employees are those who:
- Were employed by the relevant employer at 1 March 2020; and
- Are currently employed by the employer (including those who have been stood down or re-hired); and
- Are full time, part-time, or long term casuals (a casual employee employed on a regular basis for 12 months as at 1 March); and
- Are at least 16 years of age; and
- Are an Australian citizen, hold a permanent visa, are a Protected Special Category Visa Holder, a non-protected Special Category Visa Holder who has been residing continually in Australia for 10 years or more, or a Special Category (Subclass 444) Visa Holder; and
- Are not in receipt of a JobKeeper Payment from another employer.
While it appears that businesses without employees can potentially qualify for JobKeeper Payments, it is not clear at this stage what conditions will need to be satisfied.
How the support is calculated:
The ATO will administer this program and will make the $1,500 payments based on payroll information. The payments will be made monthly in arrears, so it is essential that you ensure your business and your employees continually meet the eligibility criteria.
The business will continue to receive the payments for eligible employees while they are eligible for the payments. While the program is expected to run for 6 months, payments will stop if the employee is no longer employed by the relevant employer.
How the support is provided:
To access the JobKeeper subsidy, you should talk to your accountant or adviser to assist you with the registration process and calculations.
If you want to manage the process yourself, you must:
- Applications are not yet open. However, you should register your intent to apply for the JobKeeper subsidy with the ATO (here). The ATO will provide you with regular updates and advise you when you can lodge your application
- Assess turnover
- Ensure you have an accurate record of your revenue for the 2018-19 income year and for the 2019-20 year to date
- Ensure you keep an accurate record of revenue from March 2020 onwards
- Compare your revenue for the whole of March 2019 with the whole of March 2020
- Measure the % decline in your revenue and ensure it has declined by more than 30%
- If you are not eligible in March, you may become eligible in another month
- Identify eligible employees
- Nominate the employees eligible for the JobKeeper payments – you will need to provide this information to the ATO and keep that information up to date each month. The ATO will use Single Touch Payroll to prepopulate the information in most cases.
- Notify all eligible employees that they are receiving a JobKeeper payment. Employees can only be registered with one employer.
- Pay eligible employees at least $1,500 per fortnight (before tax). If an employee normally receives $1,500 or more per fortnight before tax the employee should continue to receive their regular income. Note: It is unclear at this stage if the employer must continue to pay their employee the same salary if it was more than the subsidy amount.
- Pay superannuation guarantee on normal salary and wages amounts paid to employees. If the employee normally receives less than $1,500 per fortnight before tax, the employer can decide whether to pay superannuation on the additional amount that is paid as a result of the JobKeeper program.
Sole traders and the self-employed can register their interest in applying for the JobKeeper payment with the ATO. These businesses will need to provide an ABN for the business, nominate an individual to receive the payment, provide the individual’s TFN and declare their continued eligibility for the payments. Payments will be monthly to the individual’s bank account.
Adam owns a real estate business with two employees. The business is still operating at this stage but Adam expects that turnover will decline by more than 30% in in the coming months. The employees are:
Both Anne and Nick are still working in the business.
Adam registers his interest in the JobKeeper scheme (from 30 March 2020), then applies to the ATO providing details of his eligible employees. Adam also advises Anne and Nick that he has nominated them as eligible employees to receive the payment. Adam will provide information to the ATO on a monthly basis and receive the payment monthly in arrears.
Adam’s business is eligible to receive the JobKeeper Payment for each employee.
For Anne, the business will:
For Nick, the business will:
Adapted from Treasury fact sheet: JobKeeper payment — information for employers
Fact Sheet links:
JobKeeper Payment – Supporting businesses to retain jobs
Information for Employers:
To register your interest, please visit the Australian Taxation Office.
Information for Employees:
Some more details From 9 News
JobKeeper Payment questions: Here is exactly who is eligible
I was stood down by my employer two weeks ago because of COVID-19. Am I eligible for the payment?
Yes you are. The JobKeeper payment includes the many thousands of hospitality and retail workers who have been forced to be stood down by their employers because of social distancing restrictions.
Technically, all workers – including those stood down – are eligible if they were employed by their employer as of March 1, 2020.
I wasn’t stood down, but my company re-hired me as a part-time worker to save cash. Am I eligible?
Yes you are. The payment includes those who had to be re-hired as a result of business downturn because of COVID-19.
I’ve been a casual employee over summer and I have lost my job. Am I entitled to the JobKeeper payment?
No. Only long-term casual employees are eligible.
This means you will have to have been employed on a casual basis for more than 12 months as of March 1, 2020.
I was earning less than $1500 a fortnight before the coronavirus hit. Does that mean I’ll only get my normal wage?
Good news: if you are eligible, you will get the $1500 a fortnight regardless of how much or how little money you were making. It is not portioned based on your salary.
The JobKeeper payment is a minimum, and some employers may pay on top of that.
I’m employed by multiple businesses. Does this mean I will get multiples of the payment?
No. Each eligible Australian will get only one JobKeeper payment. If you have multiple employers, you must notify your primary employer of your intention to claim the payment.
The majority of employees won’t need to do anything to receive the payment.
I’m a self-employed tradie, am I eligible for the payment?
It depends. All employers – from self-employed individuals to charities to mega corporations – need to meet the criteria for the JobKeeper payment.
The criteria is simple: if you have a business with a turnover of less than $1 billion and your turnover has been reduced by more than 30 per cent as a result of COVID-19, you are eligible.
If you have a turnover of more than $1 billion (you’re a bloody good tradie!) then your turnover will have needed to be reduced by more than 50 per cent as a result of the virus.
If I’m self-employed will the payment come automatically to me?
No. If you are self-employed and run a business without any employees, you will need to register your interest for the payment via the Tax Office’s website.
You’ll need to provide an ABN, nominate an individual to receive a payment and have a tax file number ready.
Some more details from ABC News
Affected by coronavirus and need to apply for JobKeeper or JobSeeker payments? Here’s what you need to know
The Federal Government’s wage subsidy plan will help more than 6 million people who have seen their income fall because of the coronavirus pandemic.
The JobKeeper scheme gives affected businesses $1,500 per fortnight per employee to help pay the wages of an estimated 6.7 million Australians for six months.
But if you’re confused about which payment you’re entitled to (JobKeeper or JobSeeker), we’ve broken it down for you.
First, let’s recap. To be eligible for the JobKeeper payment you need to meet all these conditions:
- You are currently employed (including those stood down or re-hired) by an eligible employer;
- You were employed by the employer at March 1, 2020
- You are full-time, part-time, or long-term casuals (a casual employed on a regular basis for longer than 12 months as at March 1, 2020)
- You are at least 16 years of age
- You are an Australian citizen, the holder of a permanent visa, a Protected Special Category Visa holder, a non-protected Special Category Visa holder who has been residing continually in Australia for 10 years or more, or a Special Category (Subclass 444) Visa holder
- You are not in receipt of a JobKeeper Payment from another employer.
What if I’ve been stood down?
If you have been stood down since March 1, you are eligible for the JobKeeper payments. Your company will need to sign up for the wage subsidy scheme in order for you to receive them.
However, if there’s no chance of you being re-hired — if your employer can’t reopen their business under the lockdown restrictions — then you’ll need to apply for the JobSeeker payment.
This will also be the case if your company doesn’t sign up for the scheme.
If you are self-employed you will need to register your interest in applying for the JobKeeper payment via the Australian Taxation Office (ATO).
Remember, if you receive the JobKeeper payment, this will qualify as income when it comes to calculating any other payments you might be receiving.
What if the company closes and I’m laid off?
If the company shuts its doors and you’re made redundant or fired, you’ll have to apply for JobSeeker.
For the next six months, this will be boosted by the Coronavirus Supplement, which effectively doubles your payments.
What if my hours have been cut down but I’m still working?
Again, this depends on whether your employer applies for the wage subsidy.
Assuming they did apply, to receive the JobKeeper payment you must be a full-time or part-time employee or a long-term casual — meaning you had been employed on a regular basis for longer than 12 months as at March 1.
Treasurer Josh Frydenberg told the ABC’s 7.30 program that because of the one-year minimum, “there will be casuals who are not eligible for the JobKeeper supplement”.
“What they will do is go on to the JobSeeker supplement, which is available to them at $550 on top of the old Newstart or JobSeeker payment.”
However, you’ll need to meet the income tests to receive JobSeeker, and your partner’s income will also be factored in.
What if I’ve already applied for JobSeeker? Or I’m entitled to both?
The Federal Government has encouraged Australians not to withdraw their applications for Centrelink benefits, if they think they’re eligible for wage subsidies instead.
Assistant Treasurer Michael Sukkar said the Government would work out which one they should receive.
“The ATO, Services Australia, where there are applications for both, obviously work out administrative arrangements to ensure that those individuals get the JobKeeper payment,” he said.
“And at that point in time, all of the other applications will be removed.
“So, I would caution them not to withdraw an application at this point in time.”
You can’t be paid both JobSeeker and JobKeeper — it’s one or the other.
What about workers who earn less than the JobKeeper payment?
The JobKeeper payment is the same for everyone, no matter how much they earn. It’s the equivalent of 70 per cent of the median wage.
For industries hit hard — such as hospitality, retail and tourism — the Government says it’s the same as the median wage.
So even if you earn less than $1,500 a fortnight, you will receive the full payment if you’re eligible.
If you usually earn more, the Government hopes for businesses to top up employees’ earnings to bridge the gap.
As more news comes through we will update you.
Stay safe and talk soon.
John, Nathan and the the Team at Indigo FinancialBack to News Page