It's not too late to apply for JobKeeper payments
The JobKeeper Payment scheme enrolment deadline is fast approaching, so I felt it was important to share further information around the common questions I have been receiving from my clients since enrolments opened on 20 April.
Lodgement Deadline
The lodgement deadline for the JobKeeper Payment scheme is this Sunday 31 May 2020.
You need to have met the eligibility criteria and turnover test for March 2020, April 2020 or the projected June 2020 Quarter in order to receive payments backdated to 30 March 2020.
You can also enrol for JobKeeper payments if your turnover did not reduce by 30% or more in March or April, but suffered a decline in May 2020. If your business can satisfy the other eligibility criteria, you can enrol now to receive payments from May onwards.
You still have time to apply, if you need help reviewing your eligibility reach out to a tax agent or BAS agent. It is important to note that there is a repayment clause in the legislation for those who are deemed ineligible in the event of a review.
Business Turnover Tests
There are 2 methods which the ATO will accept for calculating a fall in turnover.
The basic test which tests whether your turnover has fallen by 30% or more when compared with the same period last year.
The alternative test for which the legislation has been passed and an explanatory memorandum has been released. There are lots of options here which aim to include businesses where the basic tests are not relevant. Three types of business which are captured here include:
Businesses that were established between 31 March 2019 and 1 March 2020
Businesses that have had significant growth in the last 12 months
Businesses that have irregular income
You can find more detailed information on the ATO website.
Lodgement Criteria
Another item that has been clarified by the ATO is the lodgement test. Originally the ATO required that active business participants (sole traders, company directors/shareholders and trust beneficiaries) had either lodged their 2019 income tax return or an activity statement for the 2019 or 2020 financial year before 12 March 2020. This excluded taxpayers who either were not registered for GST or were on an annual GST cycle and were on a tax agent lodgement list with a tax return due after 12 March 2020.
The ATO has advised there are some exceptions to these criteria if you are registered with a tax agent or have a lodgement deferral arrangement in place. Unfortunately, the applications forms have not been updated however, this can be confirmed on the ATO website.
For those wishing to make their JobKeeper Application themselves, there are step by step instructions for sole traders under JobKeeper Payments - Sole Trader
If you need assistance with your application or help to review your eligibility for this payment, please get in touch.