JobKeeper Payment details still not available

By Xperion | Business Articles, Coronavirus (Covid-19), COVID-19 | 09/04/2020

We would like to take this opportunity to update you on the JobKeeper Payment Scheme.

Bills passed but no details are yet available

Yesterday, the Coronavirus Economic Response Package (Payments and Benefits) Bill 2020 was introduced and passed both Houses of Parliament. Unfortunately, it did not contain the finer detail of how the JobKeeper Payment Scheme (‘the Scheme’) will operate.

What it did was set up a framework including giving the Treasurer the power to make Rules, by way of Legislative Instrument, as to how the Scheme will work. These Rules are not currently available.

ATO’s role in the JobKeeper Payment Scheme

Further, as previously announced by Treasury, the Commissioner of Taxation will be given certain discretions relating to the operation of the Scheme, including the ability to provide alternative turnover tests that can be satisfied if the tests already announced by Treasury cannot be met (e.g., that businesses with a turnover below $1 billion must have had or will have at least a 30% reduction in their turnover due to the effect of COVID-19).

It is anticipated that the ATO will make this information available once Treasury has released the Rules.

We believe this information is imminent and as soon as it is available, we will be working quickly to provide you with all the information you need to assist your clients.

Are we expecting any major changes?

We believe the information we previously provided you with at the time the Scheme was first announced by the Government and contained in the factsheets on Treasury’s website will be, on the whole, representative of how the Scheme ends up operating.

We will be in touch very soon.

If you haven’t done so and you believe your turnover will be 30% less than same period last year, register on the ATO’s website at https://www.ato.gov.au/general/gen/JobKeeper-payment/?=redirected_JobKeeper

How will this work in term of wages processing?

Xero are working on updates to their payroll system.

Xero Payroll will offer you a head start in identifying staff who may be eligible for the wage subsidy. It will compare the government’s eligibility criteria and data in Xero Payroll to suggest a list of employees. You’ll be able to modify this list by updating your employee records.

By identifying who’s eligible, you’ll help the ATO prepare to issue payments. And you’ll be able to choose when JobKeeper payments should start and end for each employee. Note the tax office plans to pay employers one month in arrears.

You can read their blog here

JobKeeper and Xero Payroll: How we’ll make it simple for you

The following still stands

The ATO seems to tie everything with 2019 returns, March 2020 onwards business activity statements and for this measure most likely Single Touch Payroll (STP) reporting.

Ensure everything is up to date and if you need a hand, let us know.

Make sure to connect with us on social media.