Latest ATO Updates on the Australian Government JobKeeper Scheme

The ATO are regularly making changes and clarifying the information available for the JobKeeper Scheme for tax agents and affected businesses on their website.  Below are the changes that you need to know about:

  • JobKeeper Enrolment Extension – The enrolment date has been extended from 30 April 2020 to 31 May 2020.  This will not preclude the business from claiming for the fortnights in April and May, provided they meet all the eligibility requirements for each of those fortnights.
  • JobKeeper Payment Extension – Payments to employees for the first two fortnights (30 March – 12 April and 13 April – 26 April) will still be covered by the scheme, provided they are paid by 8 May 2020 (previously due by 30 April 2020).
  • JobKeeper Rules Under Review – The Government is clarifying the operation of some rules to ensure the integrity and the efficient operation of the JobKeeper Payment scheme including:
    • employees employed through a special purpose entity, rather than an operating entity
    • charities and the treatment of government revenue
    • religious practitioners
    • ‘one in all in’ principles
    • full time students aged 16 and 17 years old
    • international aid organisations, and
    • universities.
  • Applying the Turnover Test (Cash vs Accruals) – The ATO have clarified that they expect that you will use the GST accounting method that you normally use when applying the turnover test.  If you normally account for GST on an accruals basis, but seek to calculate on a cash basis (or vice versa), the ATO may seek to understand your circumstances to ensure that the calculation achieves an appropriate reflection of your turnover.

We have also included some other relevant information pertaining to the JobKeeper Scheme for your reference.

JobKeeper Payment Dates

The payment dates for all JobKeeper fortnights are:

  1. 30 March – 12 April by Friday 8 May
  2. 13 April – 26 April by Friday 8 May
  3. 27 April – 10 May by Sunday 10 May
  4. 11 May – 24 May by Sunday 24 May
  5. 25 May – 7 June by Sunday 7 June
  6. 8 June – 21 June by Sunday 21 June
  7. 22 June – 5 July by Sunday 5 July
  8. 6 July – 19 July by Sunday 19 July
  9. 20 July – 2 August by Sunday 2 August
  10. 3 August – 16 August by Sunday 16 August
  11. 17 August – 30 August by Sunday 30 August
  12. 31 August – 13 September by Sunday 13 September

Please note, if you usually pay employees less frequently (eg. monthly), the payment can be allocated between fortnights in a reasonable manner.  As an example, for monthly wages, the employee must have received the monthly equivalent of $1,500 per fortnight.  You will note above that there are 3 fortnights that end in August. This would mean that in either July or August the monthly equivalent would be higher.

ATO JobKeeper Guides – The ATO has produced JobKeeper guides, which contain key dates and step-by-step instructions for agents and clients, for:

  • sole traders
  • employers reporting through STP
  • employers not reporting through STP.

Fair Work JobKeeper Dispute Benchbook – A document has been prepared by staff of the Fair Work Commission to assist parties lodging or responding to JobKeeper dispute applications under the Fair Work Act 2009.

Should you have any questions in relation to the JobKeeper Scheme, or require our assistance with any part of the process, please do not hesitate to contact our office.

Click below for more information:
JobKeeper Payment
JobKeeper Rules Under Review
Applying the Turnover Test
JobKeeper Guides
Fair Work JobKeeper Dispute Benchbook