EOFY JobKeeper Reminder
The Federal Government’s JobKeeper Payment Scheme has allowed businesses across the country to keep their doors opened and workers employed during the COVID-19 health crisis. Under the scheme, eligible employers, sole traders and other entities can apply to receive $1,500 per eligible employee, per fortnight. If you or your employees have been receiving JobKeeper during COVID-19, there are a few things to consider before lodging your tax return.
Employees that have received JobKeeper will have their payments included in their income statement as either salary and wages or as an allowance, depending on their circumstances. The Australian Tax Office (ATO) will include your income statement information in your tax return for you. For most people, this will occur by the end of July.
Employees with further questions about JobKeeper can visit the ATO’s Employees’ frequently asked JobKeeper questions page by clicking here.
Sole traders that have received JobKeeper payments need to include the payments as business income in their individual tax return.
The ATO has warned business owners that it will be honing in on fraudulent behaviour and schemes designed to take advantage of the Federal Government’s COVID-19 stimulus package. This includes JobKeeper, and their compliance efforts will be especially focused on ensuring that:
– entities meet the eligibility requirements in relation to business income,
– entities are claiming for eligible employees,
– eligible business participants are correctly making claims, and
– entities are not manipulating their turnover in order to satisfy the decline in turnover test.
ATO Deputy Commissioner Will Day says with so many Australians impacted by the COVID-19 health crisis, the ATO’s priority is to ensure payments are reserved for those who actually need them.
“We know the overwhelming majority of Australians are honest, and we’ve worked hard to help those people who are impacted by COVID-19 as quickly as possible,” says Day.
“We also have an important role to ensure the integrity of the stimulus measures and when we uncover fraud or people seeking to exploit them, we’ll take action, as we know the community would expect us to do.”
Employers can find a full list of fraudulent behaviours that are attracting the ATO’s attention by clicking here.
Individuals with further questions can call the ATO on 13 28 65, and businesses can call 13 72 26. Further information about JobKeeper can be found at www.ato.gov.au/General/JobKeeper-Payment/.
Our partners at REI Super remind Employers that super contributions known as Superannuation Guarantee are still required to be paid for those receiving JobKeeper payments. Refer to the ATO website for details on how to calculate contributions.
Important disclaimer: This article is provided for general information only, and the author is not engaged to render professional financial advice or services through this article. Readers should satisfy themselves as to the correctness, relevance, and applicability of any of the above content, and should not act on any of it in respect of any specific purchase, investment, or other financial activity without first obtaining their own independent professional financial advice.