Update Thursday 11 June
JobKeeper enrolments extended
The ATO’s JobKeeper key dates have revealed that employers who are enrolling for JobKeeper payments for the first time after May can now enrol their business and identify their eligible employees and business participants by the end of the month they are claiming for.
As an example, businesses who are enrolling for JobKeeper for the first time in June will now be able to complete Step 1 and 2 by the end of June, instead of the first JobKeeper fortnight that they were claiming for.
Employers, however, will still need to pay their employees the stipulated $1,500 for each fortnight being claimed.
The monthly business declaration — Step 3 — will need to be completed within 14 days of the end of the previous month to receive reimbursements for the JobKeeper payments made in that previous month.
For example, the business monthly declaration for reimbursement of JobKeeper payments for the month of May will now need to be completed by 14 June.
Source and credit: Accountants Daily and Ato.gov.au
The instant asset write-off threshold of $150,000 for businesses with an aggregated turnover of less than $500 million will now be extended to 31 December 2020.
Eligibility to use instant asset write-off on an asset depends on:
your aggregated turnover (the total ordinary income of your business and that of any associated businesses)
the date you purchased the asset
when it was first used or installed ready for use
the cost of the asset being less than the threshold.
Source and credit : ATO.gov.au
Superannuation Guarantee (Administration) Amendment (Jobkeeper Payment) Regulations 2020
The Superannuation Guarantee (Administration) Amendment (Jobkeeper Payment) Regulations 2020 specify that amounts of salary or wages that do not relate to the performance of work, and are only paid to satisfy the wage condition for JobKeeper, are excluded from super guarantee obligations.
The regulations recognise that in some cases, an eligible employee will receive an amount greater than their usual salary or wages because of the JobKeeper payment, noting that an employer should only have to pay super contributions in relation to an employee’s performance of work.
Accordingly, the regulations are designed to balance adequate superannuation support for employees with assistance for businesses in this period of downturn.
The regulations affect an employer’s superannuation guarantee obligations from the commencement of the JobKeeper scheme on 30 March 2020, and will have some retrospective application.
Exemplifying the latest changes, the explanatory memorandum accompanying the amendments introduces Rachel, a part-time employee who continues to earn $1,000 per fortnight, plus an additional $500 that her employer has to pay to satisfy the wage condition.
The memorandum explains that the additional payment of $500 is excluded from being salary or wages, meaning it is not subject to super guarantee obligations.
The regulations also explain that if salary or wages are below $450 for a calendar month, then they too are excluded from superannuation contributions.
Source and credit: publicaccountant.com.au