JobKeeper V2 – Make Sure You’re Prepared!

JobKeeper V2 – Make Sure You’re Prepared!
3
Sep

Under the new “V2 JobKeeper” rules, many businesses may no longer be eligible for the wage assistance. The Federal Government has now passed legislation that will assist some of those businesses in managing their staff hours, in an effort to keep more people employed without providing cash assistance.

In summary, if the business’ turnover has fallen by 10% comparatively against the September 2019 quarter, but not 30% (and would therefore be eligible for JobKeeper V2 payments), the employer can reduce an employee’s ordinary hours by up to 40% after giving 7-days’ notice.

The theory is obviously to provide employers with workplace flexibility in these uncertain times without having to let staff go.

Each employer will be required to obtain a 10% decline in turnover test certificate from either us as Tax Agent or their BAS Agent.

With the re-assessment quickly approaching, we recommend working on a “pre-assessment” prior to the end of the September quarter so that your business has an understanding of its inclusion or exclusion likelihood for JobKeeper V2 (30% decline in turnover) and the 10% test as well.  

Commercial lease reduction arrangements technically come to an end soon too – the official arrangement for waiver and deferral of rent started on 24 April 2020 and the measures will end after 24 October 2020. If this affects you as a Landlord or Tenant now would be the time to consider the impact of rent returning to normal and beginning repayment of the deferred amounts over 24 months or less.

Add to all of this, the bank loan repayment deferrals are now starting to end as well. Time to talk to your bank and see what their policies are – there are hundreds of thousands of borrowers affected, so the banks are likely to be overrun dealing with this issue.

We understand there is a lot to stay on top of and will continue to try and send out regular updates to assist.

If you need help, contact us as soon as you can.


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