Potential retrospective JobKeeper payments

The Full Federal Court has ruled the ATO’s discretion in denying certain businesses access to JobKeeper and the cash flow boost was applied narrower than it was intended to be.

  This court ruling was handed down in March, with the ATO confirming they will begin a review of certain previous decisions, using the wider discretion deemed appropriate, to assess if a different outcome is possible.

  This broadening of scope will grant further time for a business to hold an ABN, and further time to provide notice to the commissioner of assessable income or supplies. Robyn Jacobson from the Tax Institute expects ‘it [to] affect thousands of taxpayers’ who were told they weren’t eligible.

  This automatic review of decisions by the ATO will only apply to applications that have met all other eligibility criteria for the COVID-19 stimulus payments. Each case will be reviewed by the commissioner and if overturned, ATO will contact taxpayers individually for more information.

  For more information, including how this might affect you and what happens next, please visit the ATO’s website here.

Liability limited by a scheme approved under Professional Standards Legislation. Quote resource: Jotham Lian  30 April 2021

The JobKeeper Scheme has now been extended to include any eligible employees who were employed as of 1st July 2020 and are not currently nominated by an employer for JobKeeper payments.

Under the new ‘one in, all in’ principle for JobKeeper, employers must have their new employee nomination notices lodged by August 24th, to be covered under the scheme. This eligibility retest allows employees who weren’t eligible for the scheme initially to be captured and included in the extension.

This retest will allow new employees hired after March 1st, long-term casuals, and those who now qualify based on age or visa status to be able to receive payments from 3rd August 2020 – this is Fortnight 10 under the current JobKeeper Scheme. Employers must pay Fortnight 10 and 11 by August 31st to qualify.

The clock is ticking. You can find more information about this urgent update on the ATO website here or you can call us at the office on 03 5222 2366. IMPORTANT: Employers must provide a nomination form to employees to complete by 24th August 2020 and also have paid their employees the JobKeeper amount of $1500 per fortnight for Fortnight 10 and Fortnight 11 by the 31st August to qualify.

Originally announced in March 2020, the JobKeeper Payment scheme was introduced to allow employers, sole traders, and other entities, who are significantly impacted by COVID-19, to continue paying their employees’ wages and keep Australian’s employed.

This Government scheme was intended to close on September 27th, 2020 however it was announced this week that a six-month extension has been given to the subsidy payments.

Under the current scheme, employers can apply to receive $1,500 per employee per fortnight as a subsidy to assist in paying wages. Under the latest revisions, this payment amount will continue to be claimable until September 27th, 2020 where the payment will then be reduced to $1,200 per fortnight per employee. From this date, new lower payment rates will also apply for employees that work less than 20 hours a week.

Further reductions in payments will be made from January 4th, 2021, where the fortnightly subsidy will reduce to $1,000 per employee. The scheme is now projected to finish on March 28th, 2021.

From September 28th, businesses and not-for-profits will need to reassess their eligibility for the quarter, to demonstrate their continued decline in turnover.

The application process remains the same and will continue to be open to new recipients during the extension period, providing they meet eligibility requirements.

For more information on the extension and further eligibility requirements from September onwards click here.

For more information on how to check your eligibility and apply to receive JobKeeper payments click here.

There is more detailed information on what steps businesses are required to take each month in order to continue to receive the subsidy payments. You can view that information here.

If you need any assistance with applying for the JobKeeper scheme, please contact the Hrkac Group on 03 5224 2366 and we will help you through the process.

Liability limited by a scheme approved under Professional Standards Legislation.

Preying on members of the public, scammers are targeting JobKeeper applicants by impersonating the ATO.

Stating they are calling on behalf of the ATO, scammers are asking for bank account details in order to process JobKeeper payments.

The ATO has advised that this is most definitely a scam and to hang up the phone.

JobKeeper payments are reimbursed to the employer, not directly to the employee, so therefore no individual employee bank details are required.

People are encouraged to call the Tax Office if they’re unsure a call from the ATO is legitimate on 1800 008 540.