NSW COVID JobSaver Payment - Special 28 July. '21
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Special 28 July. ‘21 NSW COVID JobSaver Payment
Housekeeping § If you’re unable to hear, check your PC/Mac speakers § Sound will run through your computer speakers § During the presentation you will be muted to avoid background noise
Housekeeping § At stages during the presentation we will stop for questions Q&A § You can ask questions during the presentation by using the Q&A facility (do not use the chat for questions) Chat § We may interact with participants verbally If we open this up and you wish to talk use the ‘raise Raise hand’ option and we will unmute you Hand § We would still like you to type questions so we can record for our Q&A and further resource development
Your Presenters
Leanne Berry
Matthew Addison
Resources and Support
Executive DirectorBusiness Strategy § COVID safe Workplan § QR Codes § Masks § Reduce Mobility - Work from home if you can § Vaccinations
General Principle § Nothing is JobKeeper! § Payroll data is seen! § Don’t commit fraud § Document it – copy website and in writing § Keep watch – www.icb.org.au/resources/business- matters/covid-19-resources-2021 § NSW Business Grant webinar from Friday 23July § JobSaver – Guidelines issued – ICB Information to follow
Which Grant? § NSW Govt PDF which outlines grants for individuals, micro and small NFP and SMB is an easy visual to help to explain for business owners COVID-19 Support for individuals and businesses (nsw.gov.au)
What Support When Weeks 1 to 3 § Business Grant t/o $75k to $50m - Lump Sum of $7500 or 10,500 or $15k Weeks 4+ (18 July+) § JobSaver t/o $75k to $50m - 40% of payroll between $1500 and $100k per fortnight week - Non-employing $1000 per fortnight week Weeks 1+ § Micro Business Grant t/o $30k – 75K - $1500 per fortnight
New South Wales JobSaver Payment
Assistance § Micro-businesses requiring assistance with their online application can contact Service NSW on 13 77 88. § https://www.service.nsw.gov.au/transaction/jobsaver-payment
Support for Small to Medium
Concept – NSW 2021 COVID-19 § JobSaver will provide cash flow support to impacted businesses to help maintain their NSW employee headcount on 13 July 2021. § 4.2 While JobSaver payments can be used to cover general business costs, the primary objective of this payment is to help businesses to survive, maintain relationships with their employees and be in a position to trade when restrictions are lifted.
2021 COVID-19 JobSaver Payment
Open est 26 July
Eligible Businesses and NFP Closes. 18 October 2021
With Employees
Payments made in arrears
Backdated:
Aggregated annual turnover: $75k to $250m from week 4
Impacted by COVID-19 (30% decline) from 18 July
40% of weekly NSW payroll
Min of $1500 & Max of $100k
Cover Business expensesPayments § 5.1. Once an application has been approved, a business or not-for-profit organisation will receive automatic fortnightly payments credited to a valid bank account (as identified in its application). The first payment will be backdated to 18 July 2021 and, where possible, will be made within 10 business days of an approved application.
Don’t Cheat § 6.1. If a business or not-for-profit organisation has received a payment under the Program and DCS, Revenue NSW, Service NSW and/or § NSW Treasury is satisfied that the conditions in clause 4.1 were, or have been, contravened, § the payment or part of the payment may be recovered from the business by the Crown as debt due to the Crown, pursuant to section 5.7(3) of the GSF Act.
Aggregated Annual Turnover § Between $75k and $250m § Aggregated Annual Turnover means aggregated turnover as defined in s. 328.115 of the Income Tax Assessment Act 1997 (Cth).
Below $10m payroll
3.9 The evidence required as mentioned in clauses 3.7 and 3.8 must be in the form
of a letter from an Independent Practitioner declaring that the business
or not-for profit organisation:
(a) had total Australian wages of $10 million or less as at 1 July 2020; and
(b) experienced the required decline in turnover over the relevant period.
So the requirement is consistent with the terms and conditions but is not
mentioned in the guidelines nor is it included in the ‘accountants letter template’.
It should really be in the template.Decline in Turnover § the Goods and Services Tax (GST) turnover as defined in A New Tax System (Goods and Services Tax) Act 1999 (Cth) (GST Act) will be applied when assessing whether an applicant experienced a 30% or more decline in national turnover.
Decline in turnover Calculation
The entity must have experienced the required decline in turnover over a minimum two-week period during the
Greater Sydney lockdown (from 26 June 2021 until the lockdown ends) compared to the same period in 2019.
The GST definition of turnover is used to calculate whether an applicant experienced a 30 per cent or more
decline in national turnover. We recommend you use the same accounting method as you use for BAS.
What was your [insert dates used] [insert turnover]
business’ lowest
fortnightly turnover
between 26 June and
30 July inclusive
What was your [insert dates used] [insert turnover]
business’ turnover for
the same period in
2019?
Decline in turnover (%)
[insert decline in turnover %]Background
§ Each ABN can apply for JobSaver only once.
§ Separate businesses under one ABN will not be eligible separately.
§ The relevant COVID-19 restrictions are:
- Public Health (COVID-19 Temporary Movement and Gathering
Restrictions) Order 2021 issued on 26 June 2021
- stay-at-home order issued on 25 June 2021
- stay-at-home order issued on 27 May 2021.
§ Employees can receive Commonwealth COVID-19 Disaster
Payments if their employer is receiving JobSaver.Non-employing business § If you’re a non-employing business, such as a sole trader, you may be eligible to receive a payment of $1,000 per week. § 3.4 Non-employing businesses are not eligible for the JobSaver payment if individuals associated with and deriving income from the business have received a Commonwealth COVID-19 Disaster Payment since 18 July 2021.
Weekly payroll § 40% of weekly payroll for work performed in NSW § Weekly payroll should generally be determined by referring to the most recent Business Activity Statement (BAS) provided to the Australian Taxation Office (ATO) before 26 June 2021 for the 2020-21 financial year. § Item W1 in the BAS includes amounts of wages, salaries and other payments that are subject to PAYG withholding tax (as defined by the ATO).
W1
2.5 Payments subject to withholding tax in W1 includes
§ allowances,
For the purposes of calculating
§ leave loading, Weekly Payroll, businesses should
§ director fees and deduct amounts from W1 that have
been withheld on behalf of
§ termination payments contractors under voluntary
agreements.
does not include payments such as
§ superannuation contributions,
§ amount subject to salary sacrifice,
§ interest or dividends.Weekly payroll amount § 2.6 Businesses that only operate within New South Wales should § first identify the amount reported under item W1 in the relevant BAS and § deduct any amounts withheld on behalf of contractors. § That amount should be divided by the number of days in the BAS period and multiplied by 7. § This will give the Weekly Payroll amount.
Any payroll outside of NSW § use the same approach as reporting to the ATO on W1 to calculate the amount of wages, salaries and other amounts paid to employees who usually worked, or were based, in New South Wales
CALCULATING WEEKLY PAYROLL
To calculate weekly payroll, please refer to your calculation of wages, salaries and other amounts paid to
NSW employees in item W1 in your most recent BAS lodged prior to 26 June 2021 for the 2020-21 financial year.
Calculating weekly payroll template
The amount included in W1 in the business’ most recent BAS [insert amount shown in
A
lodged prior to 26 June 2021 W1]
B
Calculate the total gross payments to employees based outside NSW that
was included in W1
Calculate the payments withheld on behalf of contractors (including
C
contractors based in NSW) under voluntary agreements included in W1
D A-(B+C) [sub total]
Calculate the number of days in the BAS period used (use ATO days
E [number of days]
calculator)
F D/E [sub-total]
G
Fx7 [Weekly payroll]If no BAS § 2.8 Businesses that do not submit a BAS or have no W1 amount should use the ATO definition of W1 to calculate the total wages, salaries and other amounts, excluding amounts withheld on behalf of contractors, for employees who usually worked, or were based, in New South Wales during the month of April or May 2021. That amount should be divided by the number of days in the month and multiplied by 7. This will give the Weekly Payroll amount.
JobSaver to cover business costs § Business costs incurred from 18 July 2021 These costs may include: § salaries and wages § utilities and rent § financial, legal or other advice § marketing and communications § perishable goods § other business costs.
Eligibility – JobSaver • have an active Australian Business Number (ABN) • demonstrate your business was operating in NSW as at 1 June 2021 • Aggregated annual turnover $75k to $250m for year ended 30 June 2020 • Decline in turnover of 30% or more due to the Public Health Order • 2 week test period within Greater Sydney Lockdown • 26 June to end of lockdown • Compare to same period 2019 • Maintain employee headcount as at 13 July 2021 • Non-employing sole-trader: primary source of income
Eligibility #2 § 5.5 Only one application can be submitted for a single ABN. § 5.6 Only one application is permitted where there are multiple businesses under a single ABN.
Maintain Headcount § for employing businesses, § they must maintain their employee headcount on 13 July 2021 - while they continue to receive grant payments § businesses that do not maintain their headcount agree to notify Service NSW Declare: they will maintain their employee headcount on 13 July 2021 for the period for which the business is receiving grant payments and notify Service NSW if employee headcount declines over the period of the payment due to any actions of the business,
§ Employee has the same meaning as its ordinary or common law meaning. § Employee headcount: the number of persons who are employed in New South Wales and who are permanent (full-time or part-time), or casual staff that have been employed by the business for more than 12 months.
Maintain Headcount § Maintain their employee headcount means the employer will not take active steps to end the employment relationship with their employees. Employees who have been stood down under the Fair Work Act 2009 or take leave without pay are considered employees for the purpose of headcount. Businesses will remain eligible if their employee headcount declines for reasons outside the control of the employer, for example if employees voluntarily resign.
Non-Employing Business § the business receiving payments must be the primary income source for the associated person. Must be declared § Individuals with more than one non-employing business may only claim payments for one business. § are not eligible to apply if persons associated with the business, and who derive income from it, received a Commonwealth COVID-19 Disaster Payment.
Ineligible businesses
§ Non-employing business if any associated person has applied for disaster
payment
- Employing businesses are eligible for grant and employees are eligible for
Disaster payment
§ primarily passive income (rent, interest, dividends)
§ a company in liquidation or provisional liquidation
§ is an individual who has entered bankruptcy
§ has been found to have been engaged in fraud
§ the business registered its Australian Business Number (ABN) after 1 June 2021.What you need § a MyServiceNSW Account § your proof of identity § your valid ABN/ACN number § your business banking details for payment § Evidence of annual turnover and loss of income § a business activity statement (BAS) § Australian income tax return or Notice of Assessment § “accountants letter” (BAS Agents can sign)
Two proof of identity docs required § Australian driver licence § Medicare card § Australian passport § Australian birth certificate § Australian travel visa § Australian citizenship certificate § Australian certificate of registration by descent § Australian ImmiCard.
Evidence § Declare that you meet the eligibility criteria § Declare your employee headcount at 13 July 2021 § Declare that you will maintain your employee headcount (must notify NSW if the headcount declines) § submit an Australian income tax return, Notice of Assessment or other documentation demonstrating the business had a national aggregated annual turnover between $75,000 and $50 million (inclusive) for the year ended 30 June 2020 § provide details of your qualified accountant, registered tax agent or registered BAS agent § provide evidence of weekly payroll lodge other supporting documents as required to demonstrate you meet the eligibility criteria.
Non-Employing § Non-employing – Declare business is your primary source of income
Auto Process § 5.2 Businesses that have applied and are eligible for the 2021 COVID-19 business grant will generally be automatically eligible for JobSaver but must provide further information on employee headcount and payroll. These businesses may be contacted by Service NSW if further information is required. ICB: You have to still provide additional information
§ 5.3 Some businesses that are not eligible for the 2021 COVID-19 business grant are still eligible provided they meet the criteria ….. § These businesses will be required to complete an application form. § The evidence requirements are outlined in Section 6.
Section 6 evidence – Highly Impacted § declare they experienced a decline in turnover of 30 per cent or more due to the Public Health Order over a minimum two-week period within the Greater Sydney lockdown (commenced 26 June and due to end 30 July 2021), compared to the same period in 2019; § declare their employee headcount on 13 July 2021; § if they have employees, declare they will maintain their employee headcount on 13 July 2021 for the period for which the business is receiving payments under the JobSaver scheme and notify Service NSW if employee headcount declines over the period of the payment due to any actions of the business; § if they do not have employees, declare the business is the primary income source for the owner of the business; § submit an Australian Income Tax Return (or Notice of Assessment) or other documentation to demonstrate their business had a national aggregated annual turnover of between $75,000 and $50 million (inclusive) for the year ended 30 June 2020 (applicants can choose to redact their tax file number); § provide details of their qualified accountant, registered tax agent or registered BAS agent for compliance checking;
Section 6 evidence – Highly Impacted
§ provide evidence of weekly payroll:
- for businesses that submit a BAS with a W1 amount (wages and salaries) recorded: their
most recent BAS that was submitted to the ATO prior to 26 June 2021 within the 2020-21
financial year
- for businesses that submit a BAS without a W1 amount (wages and salaries) recorded: their
2019-20 NSW payroll tax reconciliation return
- for businesses that do not submit a BAS: Contact Service NSW to discuss alternate evidence
of wages and salaries; and
§ lodge other supporting documents, as required, to demonstrate that they meet the eligibility
criteria.Highly Impacted § The List
Section 6 evidence – NOT on highly impacted list
§ submit evidence through a letter from a qualified accountant, registered tax agent or registered BAS
agent that they experienced a decline in turnover of 30 per cent or more due to the Public Health
Order over a minimum two-week period within the Greater Sydney lockdown (commenced 26
June and due to end 30 July 2021), compared to the same period in 2019
- alternatively, if businesses have previously submitted a letter from a qualified accountant,
registered tax agent or registered BAS agent to Service NSW to verify decline in turnover for
other COVID-19 business support grants, they can resubmit this letter as evidence of a
decline in turnover up to the percentage previously attested;
§ declare their employee headcount at 13 July 2021;
§ if they have employees, declare they will maintain their employee headcount on 13 July 2021 for the
period for which the business is receiving payments under the JobSaver scheme and notify
Service NSW if employee headcount declines over the period of the payment due to any actions
of the business;
§ if they do not have employees, declare the business is the primary income source for the owner
of the business;
§ submit an Australian Income Tax Return (or Notice of Assessment) or other documentation to
demonstrate the business had an aggregated annual turnover of between $75,000 and $50 million
(inclusive) for the year ended 30 June 2020 (applicants can choose to redact their tax file
number);Section 6 evidence – NOT on highly impacted list
§ provide evidence of weekly payroll:
- for businesses that submit a BAS with a W1 amount (wages and salaries) recorded: their
most recent BAS that was submitted to the ATO prior to 26 June 2021 within the 2020-21
financial year
- for businesses that submit a BAS without a W1 amount (wages and salaries) recorded: their
2019-20 NSW payroll tax reconciliation return
- for businesses that do not submit a BAS: Contact Service NSW to discuss alternate
evidence of wages and salaries; and
§ lodge other supporting documents as required to demonstrate that they meet the eligibility
criteria.If no Letter § 6.4 A template is available on the Service NSW website setting out what the accountant or tax professional’s letter must include. If an applicant is not able to provide a letter from an accredited accountant or tax professional to verify their decline in turnover, they should contact Service NSW on 13 77 88.
Alternative Circumstances – location must be
NSW
§ 6.3 Micro-businesses …. with their ABN registered elsewhere
should contact Service NSW, Or
§ if they can provide evidence their business was primarily operating in
New South Wales on 1 June 2021.
§ Evidence includes commercial rates notices or lease agreements.
§ Service NSW may accept a combination of the following:
- utility bills
- insurance papers
- supply invoices
- registration papers
- contractor licences.Alternative Circumstances – alternative
comparison period
§ businesses not operating for the full year to 30 June 2020 (e.g., new
businesses)
§ businesses affected by drought, bushfires or other natural disasters
§ business acquisition, disposal or business restructure that has
impacted the business' turnover
§ a sole trader or small partnership impacted by sickness, injury or
leave.
contact Service NSW to determine if an alternate comparison period, or
alternative supporting evidence, can be applied.Alternative Evidence 6.8 Service NSW can request a combination of the following documents to support its determination of eligibility: § accountant’s letter § prior Business Activity Statements § income tax declarations § audited profit and loss statements § receipts and invoices from purchases § NSW payroll tax reconciliation returns. 6.9 Where a business is unable to provide these documents, or where Service NSW is satisfied it has other suitable methods to determine eligibility, Service NSW may accept other forms of documentation.
Auditing § Might happen Service NSW can request a combination of the following documents to support its determination of eligibility and use of funds in accordance with JobSaver Terms and Conditions including: § accountant’s letter § prior BAS statements § income tax declarations § audited profit and loss statements. § You'll need to keep all documentary evidence relied upon in your application for a minimum of 5 years.
Dob in § A public reporting channel will be established to allow people to report businesses not adhering to JobSaver guidelines.
By applying for this Grant, applicants agree § their application may be subject to an audit by the NSW Government or its representatives and agree to participate in the process if required, and § Service NSW and Revenue NSW may use other data provided by applicants to other government agencies to assist with determining eligibility for the Grant. § A public reporting channel will be established to allow people to report employing businesses not adhering to these Guidelines.
COVID-19 Restrictions
- Public Health (COVID-19 Temporary Movement and
Gathering Restrictions) Order 2021 issued on 26 June
2021
- stay-at-home order issued on 25 June 2021
- stay-at-home order issued on 27 May 2021.Additional Webinar § Wednesday 4pm § Questions into the Q&A
§ Rationale § Reasonable § Realistic § Professional § Document It !
Questions?
Thank You! admin@icb.org.au 1300 856 181
You can also read
