BAS Agent Association Group key messages 5 May 2020

JobKeeper payment

Assistant Commissioner Anthony Marvello and Director Michael Karavas, ATO provided an update and technical assistance in relation to the following:

• clarity and guidance to enable employers to be able to reasonably self-assess the eligibility of employees and projected turnovers
• support reasonable approaches to determining eligibility and access to payments
• the overall intent to provide funds to the community that need assistance
• contrived or changed behaviours that push boundaries is an area of concern for the ATO.

Cash flow boost

Assistant Commissioner Kasey Macfarlane provided an update on the cash flow boost measure. Cash flow boost credits are now being allocated to eligible businesses as the March 2020 activity statements are lodged.

Clients that have not lodged or have a deferral of time to lodge the 2018–19 income tax return will not be disadvantaged and excluded from accessing the cash flow boost credits provided that an activity statement has been lodged within the period of 1 July 2018 and 12 March 2020, showing taxable supplies. Credits will be automatically applied.

In circumstances where clients have not lodged income tax returns or activity statements for these periods and consider they would otherwise be eligible for the cash flow boost they should contact the ATO to provide evidence of their business activities to confirm eligibility.

Cash flow boost credits are a credit on the activity statement that is offset against GST and PAYG liabilities reported on the same activity statement. Where there is residual credit, this will be refunded. Credits will not be offset against any other ATO debts or liabilities that do not form part of that activity statement.

We encourage clients to contact us if they receive credits they are not eligible for, or if they have not been paid their expected entitlement after lodging their March 2020 activity statement.

Tips and links

• Common questions about JobKeeper and cash flow boost are being updated on the ATO website at top calls about COVID-19. You can subscribe to receive RSS news feeds here.
• To view other frequently asked questions, you can visit ATO CommunityExternal Link, available 24/7 with questions, answers and regular updates.
• Useful information for employers applying for JobKeeper payments.
• For a quick reference guide to what has been updated on JobKeeper information on our website see our JobKeeper timeline of content updates
• Information about schemes that may be used to artificially create or inflate an entitlement to the cash flow boost.
• The Law Companion Ruling 2020/1 provides more detail about the 'current GST turnover' and 'projected GST turnover' test criteria for determining eligibility for the JobKeeper payment.
• New questions in relation to the stimulus measures can be sent to TPCOVID19Feedback@ato.gov.au.
• Some sole traders and other entities (such as partnerships, trusts or companies) may need the Commissioner to exercise his discretion to be entitled to JobKeeper payment under the business participation entitlement. The form has now been released. You can find it under eligible business entities at work out your eligibility.