JOBKEEPER from 4th January 2021

Common questions

If a client did not previously qualify for JobKeeper, can they access it from 4 January 2021?

An entity can potentially access JobKeeper for the period between 4 January 2021 and 28 March 2021 even if it didn’t qualify for JobKeeper for the period between 28 September 2020 and 3 January 2021 or for the original JobKeeper scheme period that ended on 27 September 2020.

The fact that an entity has not previously enrolled in JobKeeper or met the eligibility conditions prior to the start of the latest phase of the JobKeeper scheme should not prevent it from accessing JobKeeper from 4 January 2021. For example, if the entity could not pass the decline in turnover test for the September 2020 quarter this does not automatically prevent it from being able to access JobKeeper for the period between 4 January 2021 and 28 March 2021 as long as it can pass the decline in turnover test for the December 2020 quarter.

Do employees need to complete a new nomination form for JobKeeper from 4 January 2021?

Employees should not need to provide a new enrolment form to the employer if they have previously provided a valid nomination form. Employers should ensure that they have a copy of the original form on file and a copy of the notification that they sent to the employee confirming that their details were provided to the ATO and advising the employee of the payment rate that applies.

We are also receiving a number of questions where employees have been stood down or working reduced hours and have been working for someone else. If the employment relationship remains intact (their employment has not been terminated) then the fact that the employee is performing some work for another entity doesn’t necessarily prevent ongoing access to JobKeeper with the original employer.

GST Turnover calculation methods

We’re receiving a lot of questions on calculation methods for GST turnover for the decline in turnover test.

The additional decline in turnover test for JobKeeper from 4 January 2021 compares actual GST turnover in the December 2020 quarter (October 2020, November 2020 & December 2020) compared to the same period in 2019 (alternative tests are available in some instances where this comparison is not appropriate).

Entities that are registered for GST must use the same method that is used for GST reporting purposes.

For example, if the entity is registered for GST on a cash basis then a cash basis needs to be used to calculate current GST turnover for the purpose of the JobKeeper decline in turnover test for the December 2020 quarter.

Where payments to the entity have been received in advance then the entity will normally need to recognise these payments as part of the GST turnover calculation, even if the goods or services have not been provided to the customer yet. For example, if the client accounts for GST on a cash basis then they would need to recognise the payment for GST purposes as it is received and include it in their GST turnover calculation, even if the services haven't been provided. The main exception to this is where the special rules in Division 99 GST Act dealing with security deposits apply to defer the GST liability, although these rules are reasonably limited in their application (see GSTR 2006/2).

Entities that are part of a GST group need to calculate their GST turnover as if they were not part of the group. That is, supplies made by another group member should not be included in GST turnover for the purposes of the decline in turnover test.

 SOURCE: KNOWLEDGESHOP