COVID-19 - Latest Jobkeeper update 20 April 2020
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Some further details released from the ATO
Following on from Friday’s update, the ATO have again been working behind the scenes over the weekend and have released some further detailed directions in a few areas. We have included a summary below with the appropriate links.
Reviewing the decline in turnover
The Basic Turnover Test – this is comparing either of the following to the same period of 2019
- GST turnover for March 2020 with GST turnover for March 2019
- Projected GST turnover for April 2020 with GST turnover for April 2019
- Projected GST turnover for the quarter starting April 2020 with GST turnover for the quarter starting April 2019.
- NB: exclude Input Taxed Sales, Sales not connected to Australia and payments with no GST Supply.
Considering Cash or Accruals Basis
You may use an accruals' basis of accounting to calculate both the current GST turnover and projected GST turnover as both calculations require you to include sales that you have made or are likely to make without any reference to when you are paid.
However, if you prepare your activity statements on a cash basis, the ATO will allow you to calculate both the current and projected GST turnovers on a cash basis. The basis used must be the same for calculating your projected and current GST turnover.
The Alternative Turnover Test – this is still to be determined on how this information is to be provided to the ATO, but it is recognising that the 2019 comparative figures are irrelevant due to either a different structure, not operating or affected by 2018/2019 drought.
Enrolment is now OPEN
Once you have identified you are an Eligible Employer (including Sole Traders as a business participant) it is important to enrol through the ATO portal as detailed in our previous update - https://www.aegisbusinessservices.com.au/blog/covid-19-latest-update-17-april-2020-jobkeeper-application-process/
Note that enrolment is currently not available for “business participants” from companies, trusts or partnerships. That is business participant who are not on payroll. We will advise when this is released.
Once new information to note as you have until end of May to enrol and identify your employees. For clients that are ready remember the enrolment process is now open.
Using or not using STP Reporting
Below are the updated links from the ATO on three JobKeeper Scenarios:
Sole Traders: https://www.ato.gov.au/general/jobkeeper-payment/In-detail/JobKeeper-guide---sole-traders/
Employers with STP Reporting capabilities: https://www.ato.gov.au/general/jobkeeper-payment/In-detail/JobKeeper-guide---employers-reporting-through-STP/
Employers without STP Reporting Capabilities: https://www.ato.gov.au/general/jobkeeper-payment/In-detail/JobKeeper-guide---employers-reporting-through-STP/
Please contact us if you need any clarification on the above or you would like us to answer any questions regarding your individual circumstances. At Aegis Business Services we are dedicated to assisting you & your business in this time and look forward to speaking with you.
