JobKeeper payments for business groups and ‘one-in, all-in’ rule clarified

Business structures that house their employees in a separate entity from the operating entity may still be able to access the JobKeeper Payment scheme. They can do so by applying an alternative decline in turnover test by reference to the combined GST turnovers of the related entities using the services of the employer entity. The government has clarified this aspect of the rules of the scheme and the relevant legislative instrument is expected to issue shortly.

The government has also confirmed the “one in, all in” principle for JobKeeper payments as noted in the explanatory statement to the existing rules and which will be made clearer in the rules. The employer cannot select which eligible employees will participate in the scheme.

The government has also announced the below.

• Charities and government revenue: Charities (other than schools and universities) can elect to exclude government revenue from the turnover test
• Religious practitioners: JobKeeper Payments can be made to religious institutions in respect of religious practitioners (with the exception of those that are students only), recognising that many religious practitioners are not “employees” of their religious institutions
• Full-time students aged 16 and 17 years: Full-time students who are 17 years old and younger, and who are not financially independent, are not eligible for the JobKeeper Payment and this clarification will apply prospectively
• International aid organisations: Entities endorsed under the Overseas Aid Gift Deductibility Scheme or for developed country relief can meet the requirement that not-for-profits pursue their objectives principally in Australia. The current requirement that employees must be Australian residents to be eligible under the JobKeeper Payment scheme would remain in place
• Universities: Changes will clarify that the core Commonwealth government financial assistance provided to universities will be included in the turnover tests.

From CAP TAX News – 30 April 2020 / Edition 16