Continuing JobKeeper – important action to be done now.
The recent government announcement extended JobKeeper for those businesses which meet the new eligibility requirements.
To continue to receive the subsidy after September, a business needs to demonstrate the specified reduction in turnover for both the June and September quarters. The turnover is measured against the corresponding quarters last year and is assessed using the same cash or accruals basis as is used for the business’ business activity statement.
It is therefore essential that the business establish whether June quarter turnover has met the test for continued eligibility.
If it has, then it must closely monitor September quarter turnover. The specified decline in that quarter’s turnover will continue eligibility to receive the subsidy and any JobKeeper top ups being paid to employees will need to continue after 27 September.
If it has not had the specified decline in turnover for the June quarter, then it will not receive the JobKeeper subsidy after 27 September. This provides around two months for preparations to conduct business without the subsidy. JobKeeper top up payments to employees will not be necessary after 27 September, so this and other aspects of the business will need careful review.
We can advise businesses on continuing eligibility or the measures required in the post JobKeeper environment.