The Australian Taxation Office (ATO) clarified for employers that JobKeeper payments do not need to be included in the aggregated turnover of the taxpayer entities.
The JobKeeper program was established to provide employment-related relief in response to the coronavirus (COVID-19) pandemic.
The ATO clarification will be relevant when aggregated turnover is used by the taxpayer to determine other tax treatments—such as the corporate income tax rate, research and development tax offset rate, and eligibility for the instant asset write-off.
More about JobKeeper Payment
The Government’s JobKeeper Payment will help keep more Australians in jobs and support businesses affected by the significant economic impact of the coronavirus.
If you currently receive JobKeeper Payment it remains unchanged and available until 27 September 2020. New applications for JobKeeper remain open, subject to meeting the relevant eligibility requirements.
On 21 July 2020, the Government announced an extension of the JobKeeper Payment until 28 March 2021, targeting support to those businesses and not-for-profits who continue to be significantly impacted by the Coronavirus.
The existing JobKeeper Payment will remain in place until 27 September 2020. Information about the operation of the JobKeeper Payment until 27 September 2020 is available on the ATO website. From 28 September 2020, the JobKeeper Payment will be extended for businesses and not-for-profits that have been most significantly impacted, the payment rates will be stepped-down and two tiers of payment will be introduced. Further changes were announced on 7 August 2020 to adjust the reference date for determining employee eligibility and make it easier for organizations to qualify for the JobKeeper Payment extension.
From 28 September 2020, businesses and not-for-profits seeking to claim JobKeeper Payment will be required to re-assess their eligibility for the JobKeeper extension with reference to their actual turnover. The JobKeeper extension will be available to qualifying businesses and not-for-profits from 28 September 2020 until 28 March 2021.