The ATO has also released an array of new and updated information sheets addressing the changes to JobKeeper. Here is a summary of some main points to consider.
Actual decline in turnover test
The ATO states that the actual decline in turnover test can be satisfied in two ways, using:
• the basic test; or
• the alternative test.
The basic test involves the comparison of actual GST turnover for the relevant comparison periods (eg September 2020 to September 2019). Generally, businesses will use the basic test. The option of an alternative test has been made available for some cases where the normal comparison period is not appropriate. There is also a modified basic test for group employer labour entities.
The actual decline test is similar to the “original” decline in turnover test, except that:
• it must be used for specific quarters only;
• actual sales made in the relevant quarter must be used, not projected sales, when working out GST turnover; and
• sales must be allocated to the relevant quarter in the same way a business would report those sales to a particular BAS (if registered for GST).

Decline in turnover tests

The ATO states that existing JobKeeper participants have already satisfied the original decline in turnover test, and do not need to satisfy it again. They do, however, need to satisfy the actual decline in turnover test.

New participants also need to satisfy the actual decline in turnover test. Although they need to satisfy the original decline in turnover test, they will satisfy it if they satisfy the actual decline in turnover test – and they can enrol on that basis.
Employers now unable to claim JobKeeper should notify their eligible employees. Employees should also be advised that the employer is no longer obligated to pay them the amount equivalent to JobKeeper. Those employees will not be eligible to be nominated for JobKeeper by any other entity.
There is no obligation to do monthly reporting during extension period in which an employer is not eligible to receive JobKeeper.

JobKeeper key dates
For the JobKeeper fortnights starting 28 September 2020 and 12 October 2020 only, the ATO is allowing employers until 31 October 2020 to meet the wage condition for all employees included in the JobKeeper scheme. In addition, to claim payment for the September JobKeeper fortnights, employers must have enrolled by 30 September.

80-hour threshold for employees
The ATO states that a full-time employee who has been employed for their full 28-day reference period will usually satisfy the 80-hour threshold.
However, closer examination may be required for eligible employees who are:
• part-time;
• long-term casual;
• not paid on an hourly basis; and/or
• stood down.
If an employee has been stood down, an alternative reference period may apply to them.
Any overtime performed by an employee in the course of their employment in their 28-day reference period will count towards the 80-hour threshold. It is the actual hours of overtime performed that count; that is, if a penalty rate loading applies, it does not increase the number of hours counted.

Eligible employees
Employers cannot claim for employees who:
• were first employed after 1 July 2020;
• left employment before 1 July 2020 (except in limited circumstances);
• have been, or have agreed to be, nominated by another employer (except in limited circumstances); or
• are casual employees, unless they were employed by the employer on a regular and systematic basis during the 12-month period that ended 1 July 2020.
If employees have multiple employers, they can usually choose which employer they want to be nominated by. However, if employees are long-term casuals and have other permanent employment, they must choose their permanent employer. They can’t be nominated for the JobKeeper payment by more than one employer.
Employers must also have given a JobKeeper employee nomination notice to any additional employees who first become eligible on or after 3 August 2020 using the 1 July test. This should have been given to any newly eligible employees by 24 August 2020. If not already done, the ATO says it should be done as soon as possible.

Although you do not need to re-enrol in JobKeeper, you do need to notify the ATO of your eligible employees and what rate you are paying them as part of your normal payday reporting in October. This can easily be done through Single Touch Payroll.

For the extension period commencing from 28 September 2020, employers will need to show that their actual GST turnover has declined in the September 2020 quarter compared to the relative to a comparable period being September 2019 quarter. For many businesses registered for GST, this calculation will match the ‘total sales’ reported at G1 on your BAS minus GST payable (1A), where applicable. If you are not registered for GST, you will work out your turnover using either the GST cash or non-cash basis of accounting. This needs to be done before 31 October 2020.

Alternative tests for determining actual decline in turnover may be available in some circumstances and the ATO encourages businesses to seek guidance if necessary.

Rates of Pay

The extension period 1 will run from 28 September 2020 to 3 January 2021. Tier 1: $1,200 per fortnight (before tax) Worked over 80 hours for the 4 weeks prior to 1 March 2020. Tier 2: $750 per fortnight (before tax). Worked less than 80 hours for the 4 weeks prior to 1 March 2020.

The extension period 2 will run from 4 January 2021 to 28 March 2021. Tier 1: $1,000 per fortnight (before tax) Worked over 80 hours for the 4 weeks prior 1 March 2020. Tier 2: $650 per fortnight (before tax). Worked less than 80 hours for the 4 weeks prior to 1 March 2020.

You may be entitled to the Third round of Victorian Government Business Support Grants

On 13 September 2020, the Victorian Government announced a new support package to help businesses survive the impacts of continued coronavirus (COVID-19) shutdown restrictions and to keep Victorians in jobs.  Business Support Fund 3 specifically targets businesses in industry sectors that have been Restricted, Heavily restricted or Closed as a result of continued restrictions outlined in Victoria’s roadmap for reopening.

1           Standard Eligibility Criteria

1.1           To be eligible for the Fund, businesses must have all the following:

2           Demonstration of eligibility
2.1          Applicants must certify that they meet the eligibility criteria and intend to remain trading at the end of restrictions.
2.2          Industry sector: To be eligible, an Applicant’s primary business activity must be in an eligible industry sector or sub sector and this must be reflected in the applicant’s Australian Business Number (ABN) registration information. Applicants should review their details at Australian Business Register website and update these details if needed prior to submitting an application. This includes ensuring that their industry classification (ANZSIC class code) linked to their ABN registration correctly captures their primary business type.
2.3          JobKeeper ID: Applicants must provide evidence of participation in the Commonwealth Government’s JobKeeper Payment scheme in the form of either a JobKeeper Business Monthly Declaration Receipt ID number or JobKeeper Enrolment Receipt ID generated from the ATO business portal.
2.4          WorkSafe Number: Applicants must demonstrate they are located in Victoria and employ people by providing their WorkCover Employer Number or WorkSafe Application Reference Number.^[1]

3           Available funding

3.1          The total grant will be: $10,000, $15,000 or $20,000 depending on the size of the business’ payroll for 2019/20:

• $10,000 if its annual payroll is less than $650,000;

• $15,000 if its annual payroll is between $650,000 and less than $3 million; or

• $20,000 if its annual payroll is between $3 million and up to $10 million.

• Meeting business costs, including utilities, salaries or rent;

• Seeking financial, legal or other advice to support business continuity planning;

• Developing the business through marketing and communications activities; or

• Any other supporting activities related to the operation of the business.

• Any adverse findings by a regulator regarding a business;

• A business is placed under external administration;

• There is a petition to wind up or deregister a company or business; and

• The business is or becomes deregistered or unregistered (including cancellation or lapse in registration.

3.2          A business as defined by its ABN can only receive one grant under Business Support Fund 3.

4           How the funding may be used

4.1          Grant funds may be used to assist the business, for example on:

5         Assessment Process

5.1          Funding will be allocated through a grant process, through which businesses are invited to apply for a grant.
5.2          As part of the assessment process, evidence provided by applicants will be subject to a crosscheck with other government agencies such as the State Revenue Office and Worksafe.
5.3          Any of the following circumstances may be taken into consideration in any decision whether to award a grant:
5.4          Businesses that have received assistance through the initial Business Support Fund, the Business Support Fund expansion, payroll tax rebate/waiver, or other coronavirus (COVID-19) programs can apply for assistance under Business Support Fund 3.
5.5          Businesses are not eligible for funding through this program where they have received funding under the Licensed Hospitality Venue Fund.
5.6          Each application will be carefully considered and assessed against the eligibility criteria. If an unsuccessful applicant considers that their application has been incorrectly assessed, they will have the opportunity to lodge a complaint with Business Victoria. If after that consideration an applicant still believes their application has been incorrectly assessed, there will be an opportunity for arms-length review of their application.

6           Compliance and Audit

6.1          Commission, Australian Charities and Not-for-profits Commissioner, Consumer Affairs Victoria and/or other applicable regulator.
6.2          Applicants will be subject to audit by the Victorian Government or its representatives and will be required to produce evidence (such as payroll reports to demonstrate impact) at the request of the Victorian Government for a period of four years after the grant has been approved.
6.3          If any information in the application is found to be false or misleading, or grants are not applied for the purposes of the business in accordance with the terms of funding as set out in these guidelines and attached application, the grant will be repayable on demand.

7           Other information about this Fund

7.1          The Department of Jobs, Precincts and Regions reserves the right to amend these guidelines and application terms at any time as it deems appropriate.
7.2          The Department of Jobs, Precincts and Regions will endeavour to notify all applicants of the outcome of their submitted application within 5 business days.

8           Closing date and how to apply

8.1          The Program will be open for applications until the date the Business Support Fund 3 is exhausted or 11.59pm on 23 November 2020, whichever is earlier.
8.2          Applicants are required to submit an application online via the Business Victoria website (business.vic.gov.au). All questions in the application need to be completed to ensure timely assessment and grant payment.
8.3          Further information may be found at business.vic.gov.au or through the Business Victoria Hotline at 13 22 15.