The Federal Government legislated the JobKeeper Framework on 6 April 2020. The way the legislation has been passed allows it to be governed by a set of rules as adopted from time to time.
Some important items to note, that have not been covered in other announcements, are set out below.
Employers wishing to participate in the scheme (assuming they meet the eligibility criteria) must:
- Notify the Australian Taxation Office in the approved form that it elects to participate in the scheme; and
- Provide information to the ATO on all elegible employees; and
- Notify an employee within 7 days of providing the employee’s information to the Commissioner for the purpose of its entitlement.
Employers must report monthly to the ATO to show payments have been made to employees and provide information on their turnover. This reporting will be integrated with Single Touch Payroll where possible.
Employees wishing to participate in the scheme (assuming their Employer is eligible) must:
- Give the Employer a nomination notice in the approved form stating the individual satisfies the requirements for JobKeeper and agrees to be nominated as an eligible employee for the purpose of the scheme
- Confirm they are not an excluded employee;
- Confirm that they are not also an employee (other than a casual employee) of another entity; and
- Confirm they have not given any other entity, or the Commissioner, a nomination notice.
It is important to note that if an over payment results from an individual nominating more than one Employer, the individual may be jointly and severally liable to pay the over payment and any general interest charge on the over payment. Further, making a false statement also renders the individual liable for criminal and administrative penalties.
The legislation allows for one individual eligible Business Participant to claim the JobKeeper payment where the business has no employees. To be an Eligible Business Participant, the individual must be actively engaged in the business carried on by the entity, and is either:
- the entity itself (a sole trader);
- an individual partner in a partnership;
- an adult beneficiary of a trust; or
- a shareholder or director of a company.
There can be only one Eligible Business Participant per entity.
To discuss your eligibility for the scheme, please contact us as soon as possible so we can assess your specific circumstances against your legislative entitlements. If you and your business are eligible, we can assist with enrolment and application lodgements on your behalf.