Eligible employers for the JobKeeper payment

Employers will be eligible if all of the following apply:

  • On 1 March 2020, you carried on a business in Australia or were a not-for-profit organisation that pursued your objectives principally in Australia.

  • You employed at least one eligible employee on 1 March 2020.

  • Your eligible employees are currently employed by your business for the fortnights you claim for (including those who are stood down or re-hired).


Your business has faced a:

  • 30% fall in turnover (for an aggregated turnover of $1 billion or less)

  • 50% fall in turnover (for an aggregated turnover of more than $1 billion).

  • 15% fall in turnover (for ACNC-registered charities other than universities and schools).

  • Your business is not in one of the ineligible categories.


You should note that the turnover calculation is based on GST turnover, but there are some modifications, including disregarding GST grouping where two or more associated business entities operate as a single GST group.



Ineligible employers

An employer is not eligible for the JobKeeper payment if:

  • The Major Bank Levy was imposed on the entity or a member of its consolidated group for any quarter before 1 March 2020.

  • The entity is an Australian government agency (within the meaning of the Income Tax Assessment Act 1997).

  • The entity is a local governing body.

  • The entity is wholly owned by an Australian government agency or local governing body.

  • The entity is a sovereign entity.

  • The entity is a company in liquidation.

  • The entity is an individual who has entered bankruptcy.


Business owners actively engaged in their business

Other businesses in the form of a company, trust or partnership can also qualify for JobKeeper payments where a business owner (a shareholder, adult beneficiary or partner) is actively engaged in the business, or a director is actively engaged in the business. This is limited to one entitlement for each entity even if there are multiple business owners or participants. We will provide more information soon about the eligibility of these businesses for the JobKeeper payment.


How to determine a fall in turnover

You only need to satisfy this requirement once – you don't need to retest turnover each month.


At the time you enroll in the JobKeeper payment scheme, you need to confirm that your business in a relevant period has had, or is likely to have, a:

  • 30% fall in turnover (for an aggregated turnover of $1 billion or less).

  • 50% fall in turnover (for an aggregated turnover of more than $1 billion).

  • 15% fall in turnover (for ACNC-registered charities other than universities and schools).


Entities that are members of a larger group

Where an entity is part of a larger group this may affect how they apply the decline in turnover test to determine whether they are eligible. If the larger group has, or estimates they will have, an aggregated turnover of more than $1 billion for the income year in which the test period occurs or had an aggregated turnover of more than $1 billion for the previous year, the entity will be required to show a 50% decline in turnover to be eligible to receive JobKeeper payments.


Testing the decline in turnover is done on an individual employer entity basis. It only takes into account the turnover of the entity which is the employer, and not other members of a group.


Not-for-profit organisations

Not-for-profit entities (including charities) that meet the turnover tests are eligible to apply for the JobKeeper payment. An ACNC-registered charity, other than universities and schools, only needs to show a decline in turnover of 15% or more. We will provide more information soon to help charities.


When you have worked out you are an eligible employer

After you have worked out you are an eligible employer, you then need to check whether your employee or employees are eligible.


MORE INFORMATION:

For the latest advice, information, copy and resources, go to https://www.ato.gov.au/

Feel free to contact us at office@gordondu-associates.com.au or (08) 9345 0499.

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