When JobKeeper payments do not count as part of aggregated turnover (COVID-19)?
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 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.
What are JobKeeper Payments?
The JobKeeper program was established to provide employment-related relief in response to the coronavirus (COVID-19) pandemic. The Government’s JobKeeper Payment will help to keep more Australians on jobs and support businesses affected by the significant economic impact of the coronavirus.
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. 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.