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May 27, 2020

Your JobKeeper Questions Answered

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Peter Hetherington
Your JobKeeper Questions Answered

With the roll out of the Australian Governments JobKeeper payment scheme, many businesses have questions on eligibility for individual circumstances. Read on to find answers for some frequently asked questions.

1. Does eligibility for the JobKeeper payment consider businesses that won’t be affected straight away, but possibly in three months’ time?

JobKeeper is a temporary scheme starting from 30 March 2020 ending on 27 September. Applications can be made throughout this time.

2. What leave entitlements accrue and on what amounts?

There are a number of provisions for employers on how JobKeeper will affect entitlements. More information can be found on leave entitlements here.

3. Can a sole trader expecting a baby in May elect to delay the commencement of paid parental leave so as to receive JobKeeper payments?

Employees and business participants will not qualify for the JobKeeper scheme for periods where they are receiving government parental leave or Dad and Partner Pay.

4. If a sole trader has registered, is their payment for JobKeeper offset against any ATO tax liability they owe?

No. Their JobKeeper payment will not be offset against existing ATO debts. If you can’t pay by the due date, you may be able to enter into a payment plan. If you need more information on payment options, visit Paying the ATO Help With Paying.

5. Are companies with no turnover such as mining exploration companies and start-ups entitled to register for JobKeeper as operations are restricted due to lockdown?

Eligible businesses need to meet one of the turnover tests. All of the turnover tests require a comparison of previous turnover. There may be alternative testing available

6. If employees must be paid $1,500 per fortnight for the April fortnights by 8 May, do you also have to pay the eligible business participant?

Entitlement based on business participation does not require the entity (whether sole trader, partnership, trust of company) to pay their eligible business participant an amount each fortnight. There is no wage condition for entitlement based on business participation.

7. If turnover improves in a few months’ time and there’s no decrease, should companies opt out of JobKeeper? 

Turnover test must only be satisfied once without retesting each month.

Want to know more?

As Government stimulus measures are frequently changing, we are continually updating and creating new tools and information for you. To review the latest materials on COVID-19, please click here. This page will be regularly updated, so please check back in from time to time.

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We’re here to support you through the changes. From making the most of the stimulus initiatives, through to managing the risks associated with the impact of the Coronavirus, the Modoras team is here to help you build a resilient business. Make well-informed business decisions; contact us on 1300 888 803 book a catch up with a Modoras professional.

IMPORTANT INFORMATION: This blog has been prepared by Modoras Accounting (QLD) Pty. Ltd. ABN 81 601 145 215. The information and opinions contained in this blog is general information only and is not intended to represent specific personal advice (Accounting, taxation, financial, insurance or credit). No individuals’ personal circumstances have been taken into consideration for the preparation of this material. The information and opinions herein do not constitute any recommendation to purchase, sell or hold any particular financial product. Modoras Accounting (QLD) Pty. Ltd. recommends that no financial product or financial service be acquired or disposed of or financial strategy adopted without you first obtaining professional personal financial advice suitable and appropriate to your own personal needs, objectives, goals and circumstances. Information, forecasts and opinions contained in this blog can change without notice. Modoras Accounting (QLD) Pty. Ltd. does not guarantee the accuracy of the information at any particular time. Although care has been exercised in compiling the information contained within, Modoras Accounting (QLD) Pty. Ltd. does not warrant that the articles within are free from errors, inaccuracies or omissions. To the extent permissible by law, neither Modoras Accounting (QLD) Pty. Ltd. nor its employees, representatives or agents (including associated and affiliated companies) accept liability for loss or damages incurred as a result of a person acting in reliance of this publication. Liability limited by a scheme approved under Professional Standards Legislation.

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