JobKeeper Due Dates Extended, and Service Entity Eligibility

JobKeeper Due Dates Extended

The ATO Commissioner has extended the time to enrol for the initial JobKeeper fortnights to 31 May 2020.

Previously, the rules set out that eligible employers wishing to claim the JobKeeper subsidy for the fortnights commencing 30 March and 13 April must enrol no later than 26 April 2020.  Eligible employers may now claim for those fortnights provided payments to employees are made no later than 8 May, and enrolment in the JobKeeper scheme is completed by 31 May.

Clarification on Service Entities

The Treasurer has clarified the application of eligibility tests for businesses whose structure uses a special purpose entity to employ staff, rather than staff being employed directly by the operating entity.

The Government will provide an alternate decline in turnover test for the eligibility of special purpose service entities that provide employee labour to group members, and that have not met the basic decline in turnover test.

The alternate test will apply where an entity provides the service of its employees to one or more related entities, and where those related entities carry on a business deriving revenue from unrelated third parties.

The alternate test will be by reference to the combined GST turnovers of the related entities using the services of the employer entity.