JobKeeper: the alternative tests

On 1 May 2020, a series of new rules were released for the JobKeeper scheme that could have a significant impact on a range of clients.

We take a detailed look at the new turnover reduction test aimed at service entities - when this test can be used, who is likely to miss out, and how the calculation process works. We also explore how the other 7 alternative tests should apply in practice, especially the substantial increase in turnover test over 3, 6 or 12 months.

We work through LCR 2020/1 which explains how to calculate GST turnover for JobKeeper purposes in detail. The ruling sets out 4 different methods that can potentially be used, including guidance on the cash / accruals issue and which entities are most at risk of ATO review.

And, we provide an update on the impact of the new rules for employees who are under 18 years of age and determining whether the ‘one in, all in principle’ applies to them. Plus, the new rules for certain non-profit entities, including charities and religious institutions.

In some areas the rules tighten access to JobKeeper, in others the amendments should enable greater access. In addition to this, the ATO has continued to drip feed guidance on key aspects of the rules - there is a lot to take into account and not a lot of time to do it.

This webinar adds clarity before the 8 May deadline for payments to staff for entities accessing JobKeeper from April.

FPA Accreditation: 21390
Total 1.5 CPD hours (0.25 regulatory & compliance, 1.25 technical)

Service entities - the new modified turnover reduction test aimed at service entities - when this test can be applied, who is likely to miss out, and how the calculation process works.

The 7 alternative tests – the latest ATO guidance on how the 7 alternative tests should be applied in practice, especially the test dealing with entities that have had a substantial increase in turnover over the last 3, 6 or 12 months, now that we have clarity on how this test is meant to work.

The ‘one in, all in principle’ - New rules have been introduced to clarify how the "one in, all in" principle operates and to introduce some specific steps that employers must take to ensure that they have access to JobKeeper payments for their employees.

Calculating GST turnover – practical implications of the ATO 4 May 2020 ruling.

Under 18 year old employees – The application of the new rules relating to employees who are 16 or 17 years old. We look at how to determine whether younger employees are eligible for JobKeeper, the ‘one in, all in’ principle means it is crucial to get this right.

Not for profit entities - A number of changes have been made to the rules relating to certain non-profit entities, including charities and religious institutions. Access to JobKeeper has been expanded for some of these entities and individuals connected with them.

Michael Carruthers

Tax Director, Knowledge Shop

Michael oversees the development of the tax team for Knowledge Shop and Hayes Knight in Sydney and is head of the Easton group’s national tax committee.

Michael has a knack for seeing through the complexity and helping practitioners work through highly technical issues with certainty and accuracy. Michael is a member of the advisory panel for the Board of Taxation and was a member of the reference group for the Board’s review of small business concessions.

He was also an expert panel member for the Board’s review of tax impediments facing small business.

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