Jobkeeper summarised

For ease of reading, I have taken the 21 pages from Josh Frydenberg and tried to write in English rather than legislation with a logical flow. We are fielding lots of questions at the edges. I reckon the below will cover most people in most situations. It is not exhaustive, otherwise it would have taken 21 pages!

Starts – 30 March 2020 Ends 27 September 2020

Amount - $1,500 per eligible fortnight

Qualification

1. On 1 March 2020, the entity carried on a business in Australia

2. The entity has satisfied the decline in turnover test

Turnover Test

An entity satisfies the decline in turnover test if:

a) The projected GST turnover for a turnover test period falls short of the entity’s current GST turnover for a relevant comparison period (the comparison turnover); and

b) the shortfall, expressed as a percentage of the comparison turnover, equals or exceeds the specified percentage for the entity

· the percentages are 15% for a registered charity

· 30% for business with turnover under $1 billion

· 50% for business with turnover above $1 billion

· Comparison period can be immediately preceding or the preceding period last year for seasonal business, whatever makes more sense to use.

Meaning of Eligible Employee

An individual is an eligible employee of an entity for a fortnight if:

a) The employee is employed by the entity at any time in the fortnight; and

b) The individual was aged 16 years and over and employed at 1 March, an Australian resident

c) The individual is not excluded from being an eligible employee – ie parental leave pay, dad and partner pay, incapacitated for work and being paid under workers compensation

Nomination requirements

The individual has given to the entity a notice stating that the individual satisfies the requirements in subsection (2), agrees to be nominated by the entity as an eligible employee and is not excluded for any reason.

What wages are included

Amounts paid by the employer to the individual in the fortnight by way of salary, wages, commission, bonus or allowances: and contributions made by the employer in the fortnight to a superannuation fund.

What about the self employed

If the entity is not a non-profit body and qualifies for the job keeper scheme, one individual can be nominated as the eligible business participant for the entity by notification to the Commissioner in the approved form.

Please note, only one eligible business participant per entity and no other entity to be entitled for the same individual is designed to prevent double dipping.

Integrity Rule

An entity is not entitled to a job keeper payment unless the entity had an ABN on 12 March 2020, and had assessable income for the 2018/19 income year in relation to carrying on a business.

An individual is the eligible business participant for a fortnight if:

a) The individual is not employed by the entity at any time in the fortnight and is over 16 and an Australian resident as for the employee rules.

b) The individual must be actively engaged in the business carried on by the entity and either a partner in the partnership, an adult beneficiary of a trust or a shareholder or director of a company.

c) The individual has to give notice (the nomination notice) stating that they are the nominated individual by the entity to participate in the job keeper scheme and has not received the job keeper payment from any other entity.

Administration Requirements

Reporting

An entity that has qualified for the job keeper scheme must notify the Commissioner in the approved form of the current GST turnover for the reporting month: and projected GST turnover for the following month within 7 days of the end of a calendar month.