URGENT MUST READ

JobKeeper is now starting applications

Important things to know

Hi everyone,

It’s us on a Sunday… we know, exciting huh! A little like you we currently have no real life apart from always working. It is what it is for now and we need to do everything we can to get through this time.

The motto we need to follow in our lives and not just in these difficult times from the team at Indigo Financial:

“You can either be the victim or you can be the person that takes full responsibility for your life.

 Each day make a commitment and give yourself permission to succeed and take action.

 Your future is in your hands and what you do day in and day out is what’s building your future”

JobKeeper

The ATO have advised Monday the 20^th of April is the day to start applying for the JobKeeper Payments.

If the JobKeeper payments are relevant to you please read on.

From this it will guide you to the use of the other attachments.

If you need any clarification on any of the attachments please feel free to give us a call.

Announcement

The ATO have advised that as of this Monday 20^th April you will be able to apply for the JobKeeker stimulus package.

I know you have been waiting for it, but here is the frustrating part… they have not advised the detail as to how to apply for it or what is needed to apply for it. The Legislation is short on the detail, due to it’s rushed nature.

All they have advised is that you can do it yourself through your MYGOVID or we (your accountants) can do it through the portal.

Again, we are in the dark on how or what is needed.

We have had many of you email or call us asking if we will do it for you.

We are in a position where we do not know how long this will take or what is needed.

What we have heard and read regarding the application

• We have researched and read via accountant’s forums (exciting we know) what they are all going to charge clients to do this. The range they have come up with is from $1,100 to $6,600 for the application then $550 per month to do each monthly declaration.

We found this a bit rich (even though we have no idea how long it will take) and unfair when some will take less time and others will take more time.

What we are proposing is for us to charge at 50% of our normal rate for this work, including:

1. Initial eligibility assessment – must check and pass the eligibility test as an employer.

2. Documentation and registration (lodge the application) from 20/4/20 – 26/4/20 to be eligible for May payment.

3. Determine employee eligibility – and ensure nomination notice is completed and on file.

4. Apply for JobKeeper payment from 4/5/20 – only after the above steps should you apply for JobKeeper for eligible employees.

5. That is the trigger for payment.

6. Employers then must write to all employees to confirm that they have been included in the system (no later than 7 days after the application from step 4.

7. Monthly reporting and ongoing responsibilities – certain detail needs to be provided to the ATO each month on GST turnover for the month and projected GST turnover for the next month.

8. Ongoing employee eligibility – monthly report required to confirm employees.

9. Ongoing questions and concerns.

10. You must keep records of all your test criteria to meet the eligibility for the employer, correspondence with employees and details as to how you determined eligible employees etc.

11. All records must be kept for 5 years. (We can store all records for you).

12. You must get the above right and you need a system in place to ensure you get it right. If you do not – see below.

The ATO has stated – Get it wrong and they will come calling:

Positive obligations:

• Employer must certify information.
• Obligations to assess employee eligibility.
• Obligation to advise ATO of change of circumstances.

Audit and Compliance

• Audit reviews.
• Cross match to Services Australia.
• Data matching with other agencies to identify false claims or ineligible employees.

Penalty Provisions

• They will want the money back.
• Joint and several liability (s 2.29 – 2.36 (Rules)).
• Penalty provisions:
  • Administrative penalties – up to 75%.
  • Failure to comply with tax law – up to 12 months imprisonment & up to $52,500 in fines.
  • Breach of the Criminal Code, obtaining financial advantage – up to 10 years imprisonment.

  You must get this right as there are significant amounts potentially being paid to you over the 6 months.

What we need

If you are happy for us to lodge the application, please forward the following ( all forms attached)

• Signed declaration regarding the decrease in turnover – refer to the letter attached as a template. Letter JobKeeper Turnover Test Confirmation We can discuss the turnover test with you over the phone.
• A JobKeeper employee Nomination Notice for each employee – please ensure all the information is completed and the employee ticks and signs the declaration. JobKeeper Employee Nomination Form
• The bank account you want the JobKeeper to be paid into. Bank Details

We are happy and ready to get the process completed for you.

If you will prepare yourself

• If you are happy to do the process yourself, you need to have already set up or need to set up your MYGOVID and Rams.
• Please find attached an email form the ATO with steps and instructions on how to do this. Set up MYGOVID and RAMS

Apologies for the lack of information that we can pass on but we are working on limited information and things being constantly updated.

For those who want us to do the registration and the declarations please email us all of forms filled in as advised above.

For those doing it themselves good luck.

To avoid penalties etc – It is critically important that you work through or we work through with you closely and you have a well documented position based on all available facts and the assumptions that have been made on a reasonable basis.

At the time of preparing this newsletter there has been forms and fact sheets prepared by Treasury.

These have been updated on a number of occasions and it is likely that there will be further updates. In addition, the ATO will release additional information over the coming days and weeks. We recommend that you continue to check on both Treasury and ATO website for additional material and further updates that may be used, especially if you are planning to do the above on your own.

From the team at Indigo Financial please make sure you all stay safe and keep well.