WAP052 - JobKeeper updates, SGC Amnesty and extensions are not extensions

By Tyler J. Wise|April 28th, 2020|Podcast|

Welcome back the podcast! In this episode we cover off the latest JobKeeper developments, the SGC amnesty and that lodgement extensions ar enot really extensions at all.

On Friday the 24th of April the treasurer carved out full time students aged 16 and 17 from the JobKeeper system. This was a moving forward approach and therefore any payment made in advance of this date will still qualify for the JobKeeper reimbursement.

The JobKeeper alternative test has been announced. If you cannot satisfy the basic test, which is a reduction or expected reduction in GST turnover, then the alternative turnover test can be applied for:

a. Entities that have newly commenced business such that there is no relevant comparison period in 2019

b. Entities that acquired or sold part of their business which affected turnover

c. Where there was a restructure of the business that affected turnover

d. Where a business experienced rapid growth in turnover such that its projected turnover is not comparable to the 2019 period

e. The business was affected by drought or other natural disaster

f. A business has an irregular turnover that is not cyclical

g. A sole trader or partner in a small partnership who was unable to work due to illness.

The superannuation guarantee amnesty is now law, and this is effective from 24 May 2018 to 7 September 2020. The amnesty seeks to encourage employers who have failed to comply with SGC obligations in the past to correct this. The act allows employers a one-time window to make up all outstanding SGC contributions that have been neglected previously. The benefit of this amnesty is that it allows employers to claim the payment as a deduction, when typically, late superannuation payments are not-deductible. If you are going to participate in this, then you need to advise the ATO in writng using the typical methods and forms. I encourage ALL employers, even diligent ones to review their superannuation payable accounts to see if there are any that have been inadvertently missed and correct this during the amnesty period. Furthermore, due to COVID-19 the ATO have advised they may be able to make flexible payment arrangements where applicable to assist in these catch ups; however, payment terms aside, this still needs to be declared to the ATO in writing prior to the date mentioned previously for the amnesty to apply.

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