The JobKeeper enrolment process for employers is now open through the Business Portal. Remember that you will need to log in to the Business Portal using myGovID.
Eligibility is based on a decline in projected GST turnover from the equivalent comparison period in 2019. Irrespective of their GST lodgement schedule (monthly or quarterly), all businesses can initially enter the JobKeeper program by demonstrating the necessary decline in turnover for one of:
- March 2020 compared to March 2019
- April 2020 compared to April 2019
- The April to June 2020 quarter compared to the April to June 2019 quarter
The level of decline that needs to occur depends on annual aggregated turnover (a higher 50% decline in turnover threshold applies to entities with an annual aggregated turnover exceeding $1 billion per year). For CCSA members, the following thresholds apply:
|Circumstance||Decline in turnover threshold|
|Not registered as a charity with the ACNC||At least 30%|
|Registered as a charity with the ACNC but NOT a preschool||At least 15%|
|A preschool registered as a charity with the ACNC||At least 30%|
What if our service is a mixed model? (i.e. operate as both a Preschool and a Long Day Care)
Some services are registered as charities with the ACNC and operate a mixed model including a preschool as one part of that mixed model (e.g. operating both a preschool and long day care service).
CCSA has sought clarification from the ATO on which threshold will apply in that circumstance but has been unable to achieve a definitive answer. Instead, ATO advice is that affected services should submit an Early engagement (advice) request to the ATO seeking an answer based on their circumstances.
More information on the early engagement for advice process for not-for-profits is available here.
Of course, if a mixed model service exceeds the 30% decline in turnover threshold for one of the relevant months or quarter, they are already eligible for JobKeeper in any case and there is no need to enter the early engagement for advice process.
GST and JobKeeper
The decline in turnover test is a one-off event to establish eligibility for the JobKeeper program. While monthly reporting of GST turnover is a requirement of the program, it is not necessary to demonstrate continuing declines in turnover in order to remain in the program. If a business does not meet the initial decline in turnover to enter the program, they should continue to monitor their GST turnover as they may become eligible to enter the program in a later period from May 2020 onwards.
You may use an accruals basis of accounting to calculate both the current GST turnover and projected GST turnover as both calculations require you to include sales that you have made or are likely to make without any reference to when you are paid. However, if you prepare your activity statements on a cash basis, the ATO will allow you to calculate both the current and projected GST turnovers on a cash basis. The basis used must be the same for calculating both your projected and current GST turnover.
Typically, GST turnover will equal the GST-exclusive value of your sales less your input taxed supplies (e.g. bank interest, dividend income). Some other payments received such as workers compensation benefits, other insurance payouts and Commonwealth Paid Parental Leave Scheme payments are also excluded from the calculation of GST turnover. Boosting Cash Flow for Employers credits and JobKeeper payments themselves are also excluded.
CCSA encourages you to seek timely advice from a licensed professional, such as your accountant, regarding your JobKeeper eligibility.
CCSA – your partner in management