Following the release of the rules governing the JobKeeper scheme by Treasurer Josh Frydenberg, the ATO has now released its first round of guidance on the $1,500 per fortnight payment.
The guidance, broken into targeted segments for employers, employees and tax professionals, provides further clarity on the eligibility criteria and application process.
The five-step process will include providing clients’ bank details, specifying the number of clients’ employees eligible for the first two fortnights, and receiving confirmation that employees are eligible and have been notified of the incoming payments.
Agents will then be able to help their clients claim the first two fortnight payments by submitting a report through Online services for agents or the business portal between 4 May and 31 May 2020.
While the JobKeeper payments began on 30 March, legislation was only passed last week, and the ATO’s guidance now comes in the second fortnight period running from 13 April to 26 April.
As such, the ATO will accept that the minimum $1,500 payment before tax has been paid for each of the first two fortnights even if it has been paid late, provided it is paid by the end of April.
“This means that they can make two fortnightly payments of at least $1,500 per fortnight before the end of April, or a combined payment of at least $3,000 before the end of April,” the ATO said.
While the ATO has set out guidance on determining the decline in turnover test for businesses, it has yet to reveal the alternative tests for businesses where turnover periods are not appropriately comparable.
Guidance for sole traders and businesses that operate in the form of a company, trust or partnership will also soon be provided by the Tax Office, although it has confirmed that the payment will be limited to one entitlement for each entity even if there are multiple business owners or participants.
More information on the ATO’s guidance is available here.
Agree with Anonymous. I have been asked the same question by a small take away partnership. The kids will love $1500 per fortnight. Clients do not feel right doing this, but 1 in all in as 1 partner only can claim the JobKeeper. This is also not right as they both have to live on income that has dropped by 80%
No, it’s not “one in all in”. If they are paid less than $1500, then keep paying them less than $1500 (if still paying them at all). You then can’t claim the JobKeeper for them as they drop off the list of eligible employees.
Pretty sure the government didn’t intend to be funding $1500 for kids who normally earn about $250……
Where does it exclude full time school students who are 16 years old and earning $40 per week as a long time casual worker?
Regular and Systematic shifts . Examples available.
It would be greatly appreciated if a link to the ATO guidance was included in the article.
Hi Will. Thanks for the feedback. I’ve included a link to the ATO’s guidance at the bottom of the article.