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JobKeeper 2.0 new business

Newbie

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Hi,

Would a company registered on 1 July 2020 be eligible to claim JobKeeper for its employees and business participant? On what grounds could this happen if there is no prior year reference to demonstrate a 30% decline in turnover?

One interpretation would be to pro-rata the alternative test based on the pre-1 March 2020 ATO guidance per this link: https://www.ato.gov.au/General/JobKeeper-Payment/In-detail/Jobkeeper-tests/Applying-the-turnover-tes...

However, it doesn't seem like this is a particularly strong interpretation given the other side of the argument which could be "why start a business during a recession unless it was only to get JobKeeper". However, surely there are valid reasons to start a business even in a recession, for example, a new product, competitive service or innovation that would be in demand, and for which a market exists.

It would seem counterintuitive for the government to provide established businesses with a competitive advantage against new business by providing JobKeeper to established businesses without providing any competitive support to new businesses which would otherwise be competitive, grow, succeed and create new jobs.

Looking forward to your insights.

Thank you
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Most helpful response

Community Support

Replies 0

Hi @Neat9

 

I was able to check the turnover test on this. It does offer both basic and alternative options around eligibility still. In addition to this though we now do have some other updated information I have included below as well.

 

The date for assessing employee eligibility has changed from 1 March to 1 July 2020 and you now have until 31 August 2020 to pay new eligible employees for fortnights commencing on 3 August and 17 August 2020 (fortnights 10 and 11). Take a look at this thread for more information: JobKeeper 2.0 new eligibility 1 July - date for processing?

1 REPLY 1

Most helpful response

Community Support

Replies 0

Hi @Neat9

 

I was able to check the turnover test on this. It does offer both basic and alternative options around eligibility still. In addition to this though we now do have some other updated information I have included below as well.

 

The date for assessing employee eligibility has changed from 1 March to 1 July 2020 and you now have until 31 August 2020 to pay new eligible employees for fortnights commencing on 3 August and 17 August 2020 (fortnights 10 and 11). Take a look at this thread for more information: JobKeeper 2.0 new eligibility 1 July - date for processing?