• DK Accounting & Advisory

JobKeeper - The Small Business Lifeline

Updated: Jul 13


Whether you have employees, or work alone - JobKeeper could be the difference between your business suviving or failing.


Jobkeeper - Does it apply to my business?

To establish your small business' eligibility for this initiative, you will need to demonstrate that your turnover has decreased by at least 30%. Only 15% turnover reduction is required for not-for-profits. Turnover is measured against the same period last year, and needs to be compared for at least a month. Some businesses will be ineligible due to their function, such as government owned entities or local governing bodies. For further details and clarification on the eligibility requirements, please use the following link:

https://www.ato.gov.au/General/JobKeeper-Payment/Employers/Eligible-employers/

Jobkeeper - Who are my eligible employees?

Once you believe you can demonstrate your business is eligible, you next need to determine which of your employees qualify for JobKeeper. To be eligible, as at 1 March an employee must be:

  • An Australian resident

  • Older than 16 years of age

  • Either be a permanent employee, or a casual that has been employed for more than twelve months prior to that date. (Eligible employees that had been stood down since 1 March and subsequently brough back into the business can also qualify).

Sole Trader business owners can also meet an adjusted set of eligibility criteria, even though they are not technically on an employee on their payroll. However, for a business owner to be an eligible employee, they need to be actively involved in the business. Swinging by the factory once a month would probably not be enough to demonstrate eligibility. For further details and clarification on eligibility requirements, please use the following link: https://www.ato.gov.au/General/JobKeeper-Payment/Employers/Your-eligible-employees/


Jobkeeper - How do I pay my eligible employees?

You need to pay all eligible employees at least $1,500 from the payroll cycle starting 30 March. There are three different ways you will be required to pay your eligible employees, depending on whether they (a) would usually earn more than $1,500 (b) usually earn less than $1,500 a fortnight (c) have been brought back after being laid off. See example 1 provided below.


For further details and clarification on relevant employee entitlements, please use the following link:

https://www.ato.gov.au/general/jobkeeper-payment/employers/paying-your-eligible-employees/

Jobkeeper - As a business owner, how do I apply?

Once you are satisfied that your business meets the eligibility criteria and employs at least one eligible employee, you should then enrol your business for JobKeeper. The enrolment for JobKeeper is now open, and the Australian Tax Office has advised eligible business to enrol prior to 30 April 2020. Refer to the following link for enrolment guidance: https://www.ato.gov.au/general/jobkeeper-payment/employers/enrol-for-the-jobkeeper-payment/?=redirected_URL#Step1


All a bit too much? Get in touch with us for help.


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