JobKeeper Payment Information

JobKeeper Overview

The government has introduced a $130 billion JobKeeper Payment scheme to support businesses significantly affected by the coronavirus to help keep more Australians in jobs. 

The JobKeeper payment is open to eligible employers to enable them to pay their eligible employee’s salary or wages of at least $1,500 (before tax) per fortnight. 

Eligible employers will be reimbursed a fixed amount of $1,500 per fortnight for each eligible employee. 

Employers will need to pay eligible employees a minimum of $1,500 (before tax) per fortnight to claim the JobKeeper payment. This will be paid to the employer in arrears each month by us (ATO). The first payments to eligible employers will commence in the first week of May 2020. JobKeeper payments can be made for the period beginning 30 March 2020. 

If employers do not continue to pay their employees for each pay period, they will cease to qualify for the JobKeeper payment. 

To be eligible for the JobKeeper payment, employers and their employees must meet a range of criteria.

Read more: https://www.ato.gov.au/general/JobKeeper-Payment  

Extension of time to enrol for the JobKeeper scheme

The Commissioner has extended the time to enrol for the initial JobKeeper periods, from 30 April 2020 until 31 May 2020.

If you enrol by 31 May 2020, you will still be able to claim for the JobKeeper fortnights ending in April and May, provided you meet all the eligibility requirements for each for those fortnights. This includes having paid your employees by the appropriate date for each fortnight.

For the first two fortnights (30 March – 12 April, 13 April – 26 April), we will accept the minimum $1,500 payment for each fortnight has been paid by you even if it has been paid late, provided it is paid by 8 May 2020. If you do not pay your staff by this date, you will not be able to claim JobKeeper for the first two fortnights.

You can enrol and claim for JobKeeper earlier if you choose. For example, you can enrol by the end of April to claim JobKeeper payments for the two fortnights in April.

JobKeeper Guidance for NSW P&C Associations

This guidance is based on a discussion with the ATO as at 30 April 2020. While P&C Federation offers this analysis based on our understanding, P&C Federation encourages all P&C Associations to seek professional advice with regards to your P&C Association’s circumstances and structure. For further clarification regarding your P&C Association’s particular situation, P&C Federation advises you contact the ATO for advice.

[This guidance is correct to the best of the P&C Federation’s understanding as at 2 May 2020.]

[Updates since the original version of this document on 26 April:

  1. Revenue anomalies (such as a large, one-off revenue item) that result in a P&C satisfying the revenue reduction test do not have to be adjusted or removed. See under new heading “Revenue Reduction Test Satisfied only due to an Income Anomaly”.  (30 April)
  2. Charities to be able to choose whether or not to include government grants when evaluating their revenue reduction. See changes under headings “Calculation of GST Turnover” and “Inclusion or Exclusion in GST Turnover of Common P&C Revenue Items”.  (30 April)]
  3. Noted that the inclusion or exclusion of input-taxed revenue for P&Cs (ant other not-for-profit organisations) is being reviewed by the government, but no changes to the current rules have been made yet. See addition under headings “Calculation of GST Turnover” and “Inclusion or Exclusion in GST Turnover of Common P&C Revenue Item”.  (2 May)
  4. Removed inapplicable statement that an input-taxed sub-entity must charge GST if its revenue exceeds $75,000 pa if the parent entity is not a charity. For P&Cs, only P&Cs that are charities are allowed to create Input-taxed sub-entities.  See change under heading “Calculation of GST Turnover”.  (2 May)
  5. Updated guidance as to timing of donations to a P&C where the donations are collected by a school and not forwarded to the P&C. See change to last paragraph under heading “Timing of Donations Received by School on behalf of a P&C”.  (2 May)
  6. Updated guidance for inclusion or exclusion of fund-raising event revenue in “GST Turnover” for P&Cs not registered for GST. See change under headings “P&Cs Not Registered for GST” and “Inclusion or Exclusion in GST Turnover of Common P&C Revenue Item”.  (2 May)
  7. Added a comment regarding what form a donation can take. See changes under heading “Inclusion of Donations in “GST Turnover”.  (2 May)
  8. Added a comment that an employee’s nomination of an employer is final and cannot be changed. See addition under heading “Only One Employer Eligible for JobKeeper Payments for the One Person”.  (2 May)
  9. Added a link to the ATO website description of the criteria used to establish whether a casual employee is eligible for JobKeeper. See change under heading “Eligibility of Long-Term Casual Employees”.  (2May)
  10. Confirmation that P&Cs that are charities are able to choose to exclude government grants from the calculation of GST turnover. See change under headings “Calculation of GST Turnover” and “Inclusion or Exclusion in GST Turnover of Common P&C Revenue Item”.  (2 May)
  11. Clarified the inclusion of grant income where the grant included GST. See change under headings “Inclusion or Exclusion in GST Turnover of Common P&C Revenue Item”.  (2 May) ]
  12. Updated comments on ability to exclude grant income to recognise that the ATO website describes this option. See changes under headings “Calculation of GST Turnover” and “Inclusion or Exclusion in GST Turnover of Common P&C Revenue Item”.  (17 May)
  13. Included comments on inclusion or exclusion of raffle ticket sales in the calculation of GST turnover. See change under heading “Inclusion or Exclusion in GST Turnover of Common P&C Revenue Item”.  (17 May)  ]

The JobKeeper payment is intended to assist businesses, including P&C Associations, affected by COVID-19 to cover the costs of wages of their employees.  It is only relevant to P&Cs that have employees, either permanent or casual.  Additionally, if all of a P&C’s potentially eligible employees are already participating in the JobKeeper scheme through another employer there is no reason for a P&C to further investigate the scheme.  No employee can participate in the JobKeeper scheme through more than one employer.

The JobKeeper scheme starts on 30 March 2020 and ends on 27 September 2020.

A business that has suffered a substantial decline in turnover can be entitled to a JobKeeper payment of $1,500 per fortnight for each eligible employee. It is a condition of entitlement that the business has paid gross salary and wages of at least that amount to the employee in the fortnight, even where that amount is greater than the employee’s normal pay. 

The Australian Taxation Office (ATO) reimburses the business for JobKeeper payments at a rate of $1,500 per fortnight per participating employee.  These reimbursement payments are made by the ATO in the calendar month following the month in which the JobKeeper payments are made to employees.   

The JobKeeper scheme, eligibility requirements and processes are described at and from https://www.ato.gov.au/general/JobKeeper-Payment/?=Redirected_URL.

For those interested, the legal specifications of the JobKeeper scheme are at https://www.legislation.gov.au/Details/F2020L00419 with an accompanying explanatory statement at https://www.legislation.gov.au/Details/F2020L00419/Explanatory%20Statement/Text.

This guidance document does not aim to replace the documentation and explanations provided by the ATO at the above link.  The information available from the ATO should be consulted first. 

The purpose of this document is to provide clarifications which are specific to NSW P&C Associations.

Participation in the JobKeeper Scheme

Participation in the JobKeeper scheme is not mandatory.  If a P&C satisfies the employer eligibility requirements, as described at https://www.ato.gov.au/General/JobKeeper-Payment/Employers/Eligible-employers/, it has the option of deciding to enrol, using the process described at https://www.ato.gov.au/General/JobKeeper-Payment/Employers/Enrol-for-the-JobKeeper-payment/.  Enrolment and subsequent reporting processes require a P&C Office Bearer, typically the P&C’s Treasurer, to have a myGovID which enables a login to the P&C’s activity statement records through the ATO’s Business Portal.  Alternatively, a tax agent can act on the P&C’s behalf.    

If a P&C is eligible and decides to participate in the JobKeeper scheme, its employees must be notified and all eligible employees who decide to participate must be included.  An eligible employee cannot be excluded from the scheme once the P&C has decided to participate. Employee eligibility and associated processes are described at https://www.ato.gov.au/General/JobKeeper-Payment/Employers/Your-eligible-employees/.

Employer Eligibility – Reduction in Turnover

One of the employer eligibility tests requires the P&C to confirm that it has experienced or expects to experience a reduction in “GST turnover” (further described below) for a relevant period in 2020 compared to the same period in 2019. 

Once a P&C has established its eligibility to participate in the JobKeeper scheme, all of its employees are potentially eligible to participate, if they satisfy all of the employee eligibility requirements (as described later), even if they work for a part of the P&C that has not had its revenue included in the reduction of turnover test.      

The required reduction in turnover to be eligible for JobKeeper is 15% (or more) of the revenue in the 2019 comparison period if the P&C is registered with the Australian Charities and Not-for-profits Commission (ACNC) as a charity. If a P&C is not registered as a charity (though all P&Cs should be registered charities), the required turnover reduction is 30% (or more).

Once the P&C has established the relevant reduction it has satisfied this reduction in turnover test for the remainder of the period in which JobKeeper payments are made. The P&C does not have to continue to have a reduction in turnover in any later part of the JobKeeper period. 

The following table describes the available comparison periods.

For JobKeeper payments to employees starting in:The corresponding available comparison periods are:
April 2020March 2019 vs March 2020
April 2019 vs April 2020
April-June 2019 vs April-June 2020
May 2020Any month March-May 2019 vs the corresponding month in 2020 OR
April-June 2019 vs April-June 2020
June 2020Any month March-June 2019 vs the corresponding month in 2020 OR
April-June 2019 vs April-June 2020
July 2020Any month March-July 2019 vs the corresponding month in 2020 OR
April-June 2019 vs April-June 2020 OR
July-September 2019 vs July-September 2020
August 2020Any month March-Aug 2019 vs the corresponding month in 2020 OR
April-June 2019 vs April-June 2020 OR
July-September 2019 vs July-September 2020
September 2020Any month March-Sept 2019 vs the corresponding month in 2020 OR
April-June 2019 vs April-June 2020 OR
July-September 2019 vs July-September 2020

Note: The use of some comparison periods will require a projection or estimate of revenue for the period in 2020.


Alternative Tests for Assessing Reduction in “GST turnover”

If there is an anomaly in the revenue for either a 2019 or 2020 comparison period which results in the P&C not showing a sufficient decline in revenue to qualify for JobKeeper eligibility there may be an “alternative test” of revenue reduction available. The circumstances in which an alternative test is available are varied and include situations such as a P&C being newly formed and not having a corresponding period in 2019 or having an unusually low income in the 2019 period or having an irregular or particularly lumpy income which distorts the comparison. The potential and process for applying an “alternative test” is described at https://www.ato.gov.au/General/JobKeeper-Payment/In-detail/Applying-the-turnover-test/?anchor=Alternativetest#Alternativetest.

Revenue Reduction Test Satisfied only due to an Income Anomaly

If there was an income anomaly in either the 2019 or 2020 comparison period which results in the P&C satisfying the revenue reduction test, this result is definitive and there is no need to remove the effect of the anomaly from the affected period nor any need to determine whether one of the “alternative tests” should be used.  For example, if the 2019 comparison period’s revenue is unusually large due to a large, unusual or one-off revenue item which has no counterpart in the 2020 comparison period and it is only this unusual 2019 income which results in the requisite revenue reduction from 2019 to 2020, the P&C has satisfied the revenue reduction test

Calculation of “GST turnover”

The revenue (or turnover) reduction test is done by comparing the “GST turnover” for the two comparison periods, as described at https://www.ato.gov.au/General/JobKeeper-Payment/In-detail/Applying-the-turnover-test/.

A business’s “GST turnover” is defined as being the revenue on which it charges GST (or would have charged GST if the business had been registered for GST) but is redefined or extended for JobKeeper purposes to also include certain donations received by not-for-profit organisations (such as P&Cs).  See later for a description of the conditions under which certain donations must be included in the calculation of “GST turnover” for JobKeeper eligibility purposes. P&Cs which are charities may also choose to exclude government grants from the calculation of “GST turnover” for JobKeeper eligibility purposes (see below).

The inclusion or exclusion of a P&C’s input-taxed revenue is currently being reviewed by the government.  The current rules, as at the time of writing and in line with the principle in the preceding paragraph, are elaborated below.  This guideline document will be updated, if necessary, when and if the current rules are changed.  

If a P&C is a charity registered with the ACNC it may choose to exclude from “GST turnover” any grants it has received from any Australian government (Federal, state or local) or (improbably) from the United Nations or any of its agencies.  Government grants will continue to be included in “GST turnover” unless the P&C notifies the ATO of a decision to exclude them.  The process for this has not yet been published by the ATO.  The option to exclude government grants is briefly reflected on the ATO website at https://www.ato.gov.au/General/JobKeeper-Payment/Employers/Eligible-employers/ under the heading ‘Not-for-profit organisations’.  For those interested, the legal specifications for this modification to “GST turnover” are at https://www.legislation.gov.au/Details/F2020L00546, with an explanatory statement at https://www.legislation.gov.au/Details/F2020L00546/Explanatory%20Statement/Text

A P&C’s canteen revenue is excluded from the calculation of “GST turnover” because of the provisions of GST law that result in school canteens run by not-for-profit entities (such as all P&Cs) being input-taxed, as described at https://www.ato.gov.au/non-profit/your-organisation/gst/gst-concessions/#schooltuckshops.  (While this ATO guidance states that a P&C has to choose to operate a canteen as input-taxed and could instead operate a canteen with GST being charged, no P&C is known to have done this and all P&C-operated canteens are believed to be input-taxed.)

If a P&C is registered for GST and is a charity registered with the ACNC and makes use of the charity tax concessions to create input-taxed sub-entities, as described at https://www.ato.gov.au/Non-profit/your-organisation/gst/gst-branches,-groups-and-non-profit-sub-entities/?anchor=nonprofitsubentities#nonprofitsubentities, then the revenue of those input-taxed sub-entities is excluded from the calculation of “GST turnover”.  Note that under the requirements for being input-taxed, a sub-entity cannot remain input-taxed but must instead charge GST on its sales if its annual revenue exceeds $150,000.

The inclusion of revenue from a fundraising event in total “GST turnover” will depend on whether the event has satisfied the criteria described at https://www.ato.gov.au/non-profit/your-organisation/gst/gst-concessions/#fundraisingevent and the P&C decided to treat the event as input-taxed or not, in compliance with the specified requirements.  If the P&C had decided to treat the fundraising event as input-taxed, the associated revenue would be excluded from the calculation of “GST turnover”.  Conversely, if the P&C had not decided to treat the fundraising event as input-taxed (and therefore included GST in any sales revenue associated with the fundraising event), the associated revenue would be included in the calculation of “GST turnover”. 

P&Cs Not Registered for GST

If a P&C is not registered for GST, “GST turnover” is calculated by including all of the revenue that would have included GST had the P&C been registered for GST, and making the assumption that the P&C did not elect to create input-taxed sub-entities, plus adding donations that satisfy the conditions for including donations (as described below).  Canteen revenue remains excluded from “GST turnover” because all P&Cs are assumed to treat canteen revenue as input-taxed. Fund-raising event revenue may also be excluded on the same basis as described previously for P&Cs registered for GST.       

A table listing the common sources of P&C revenue and applying the above is included later.

Change in GST Registration Status

If a P&C is registered for GST in one period used for determining the reduction in its turnover and not registered for GST in the other period used for the comparison, it uses the approach applicable to its GST registration status at each separate period. For the period during which the P&C was registered for GST, the P&C’s “GST turnover” excludes the GST component from its revenue. 

Inclusion of Donations in “GST Turnover”

Donations are included in “GST turnover” of a P&C under one but not both of the following conditions:

  1. If the P&C has Deductible Gift Recipient status for a School Building Fund that has the same ABN as the P&C, any tax-deductible donations to the Building Fund in the relevant period are to be included in the total “GST turnover” of the P&C for that period. No other donations received by the P&C are to be included in “GST turnover”.
  1. If the above does not apply and the P&C is registered as a charity with the ACNC then any donations received by the P&C (which, by operation of the previous condition, cannot be donations to a DGR) in the relevant period are to be included in the total “GST turnover” of the P&C for that period. Note that “donations” include gifts of money, property (provided the market value of the property exceeds $5,000) and listed Australian shares.        

If the P&C does not satisfy either of the above conditions then no donation income it receives is to be included in the total “GST turnover” for any period.

However, while the above reflects the current JobKeeper specifications for including or excluding donations in “GST turnover” there is a strong possibility that the above specification will be changed. 

Timing of Donations Received by School on behalf of a P&C Association

Many schools collect donations requested by a P&C as part of a single payment by a parent to the school which also includes voluntary contributions requested by the school and/or subject/material charges.  In this case, where it is either impossible or impractical to determine the date on which the donations to the P&C were made by the various parents, it is reasonable to use the date(s) on which the donations were deposited in the P&C’s bank account (following their transfer by the school) as the date(s) of the donations for the purpose of determining in which period they occur for the turnover reduction test.    

Some P&Cs have donations collected by their associated school but do not have those donations transferred to the P&C’s bank account.  This situation could occur where a school retains the donations on behalf of a P&C until a sum is approved by the P&C for use by the school, either immediately upon collection or at a later date.  Note that the P&C Federation recommends that this approach not be used and that all donations collected on behalf of a P&C should be transferred to the P&C.  In this situation, the P&C must make a reasonable judgement as to when the donations are received by the P&C.  Document the decision and any reasons for it in case there is a subsequent query from the ATO.    

Inclusion or Exclusion in “GST Turnover” of Common P&C Revenue Items

The inclusion or exclusion of a P&C’s input-taxed revenue is currently being reviewed by the government.  The table below reflects the current rules, as at the time of writing.  This guideline document will be updated, if necessary, when and if the current rules are changed. 

Note: Some P&C Association run canteens are registered for GST however, the majority of P&C Association run canteens are in-put tax operated.

Revenue item: If the P&C is registered for GST: If the P&C is not registered for GST:
Band program feesExclude if within an input-taxed sub-entity (ie GST is not charged)
Include if not within an input-taxed sub-entity (ie, GST is charged)
Include
Before and after school care feesExclude if within an input-taxed sub-entity (ie GST is not charged)
Include if not within an input-taxed sub-entity (ie, GST is charged)
Include
Canteen salesExclude (If in-put tax operated)
Include (if GST added to products sold)
Exclude
Commission income (eg Entertainment Books)Include (but exclude if made directly to an input-taxed sub-entity with a function which legitimately includes the commission-related activity)Include
Donations and gifts (including donations and gifts to or at a fundraising event)
Refer to earlier explanationRefer to earlier explanation
Fundraising event revenue (excluding donations and gifts)Exclude if fundraising event was treated as input-taxed in line with requirements outlined earlier (ie, GST was not charged)
Include if fund-raising event was not input-taxed (ie GST was charged on ticket sales, etc)
Exclude if the fund-raising event was eligible for the fund-raising event GST concession and the P&C elected to use the concession (as described earlier)
Include if the fund-raising event was not held under the fund-raising event GST concession
Grants – Government (Federal, state or local)Include if the P&C is not a registered charity

Include if the P&C is a registered charity and has not chosen to exclude the grant income

Exclude if the P&C is a registered charity and has chosen to exclude the grant income and has notified the ATO of this exclusion
As for P&Cs registered for GST
Grants - Non-governmentInclude (but exclude if the grant did not include a GST component and was made directly to an input-taxed sub-entity with a function which legitimately includes the grant-related activity)Include
Input-taxed sub-entity revenueExcludeNot applicable: Input-taxed sub-entities can only exist if a P&C is registered for GST
Insurance claimsExclude if for loss within an input-taxed sub-entity
Include if for loss not within an input-taxed sub-entity
Include
Interest and other investment incomeExcludeExclude
Raffles or bingo (ticket sales)Include if the P&C is not a registered charity: the amount to be included is ten elevenths of the difference between total ticket sales and total monetary prizes

Exclude if the P&C is a registered charity
As for P&Cs registered for GST
P&C membership feesIncludeInclude
Uniform shop salesExclude if within an input-taxed sub-entity (ie GST is not charged)
Include if not within an input-taxed sub-entity (ie, GST is charged)
Include

Employee Eligibility

Once a P&C determines it is eligible for JobKeeper as an employer and decides to join the scheme, it must next determine which of its employees are eligible and wish to participate.  The P&C cannot discriminate between its employees.  Once the P&C enrols in JobKeeper all eligible employees who wish to participate must be included as soon as they have completed the necessary forms and sent them to the P&C. The employee eligibility rules and associated processes are described at https://www.ato.gov.au/General/JobKeeper-Payment/Employees/Eligible-employees/.

P&C employees who were employed as at 1 March 2020 and were either permanent employees (part-time or full-time) or long-term casuals (see below for further explanation) are potentially eligible. There are other requirements applying to eligibility of employees and these are further explained at the above link and also on the employee JobKeeper declaration form described and provided at https://www.ato.gov.au/Forms/JobKeeper-payment—employee-nomination-notice/.

Only One Employer Eligible for JobKeeper Payments for the One Person

An employee can only have the JobKeeper payment in respect of one employer.  If a P&C employee also has at least one other employer, the following applies:

  1. If the employee is employed on a permanent basis by one or more employers, the employee chooses which JobKeeper-enrolled permanent employer will receive the JobKeeper payment and otherwise comply with the JobKeeper scheme requirements. If none of the employee’s permanent employers are participating in the JobKeeper scheme, the employee cannot participate in the JobKeeper scheme. Any permanent employment prevents the employee participating on the basis of casual employment with a different employer.
  1. If the employee is not employed on a permanent basis by any employer but is employed on a casual basis by more than one employer and more than one of those employers are participating in the JobKeeper scheme, the employee chooses which JobKeeper-enrolled casual employer will receive the JobKeeper payment and otherwise comply with the JobKeeper scheme requirements.
  2. Once an employee has nominated an employer there is no possibility of changing the nomination to another employer.  This applies even where the nominated employer ceases to be involved in JobKeeper, (eg if it goes out of business).

Eligibility of Long-Term Casual Employees

The JobKeeper scheme provides for the inclusion of “long-term casual employees”.  The criteria for determining whether a casual employee qualifies for JobKeeper are briefly described (at the earlier employee eligibility link) as a casual employee who has been “employed on a regular and systematic basis for at least 12 months as at 1 March 2020”.  This is further explained by the ATO as “a casual employee is likely to be employed on a regular and systematic basis where the employee has a recurring work schedule or a reasonable expectation of ongoing work”.

See:https://www.ato.gov.au/General/JobKeeper-Payment/In-detail/Employee-test-requirements/?page=2#Consideredalongtermcasualemployee and the examples listed there.

JobKeeper Payment FAQs for Employers and Employees

P&C Federation has collated Frequently Asked Questions (FAQs) that we have received from members over the last few weeks. All information and links provided are that of the ATO and other government agencies. 

 

To be eligible for the JobKeeper payment, employers and their employees must meet a range of criteria.

Read more: https://www.ato.gov.au/general/JobKeeper-Payment

JobKeeper – timeline of content updates

Q. Where can I find the time line information for enrolling etc?

A timeline of new information and content updates for the JobKeeper Payment.

Read More: https://www.ato.gov.au/General/JobKeeper-Payment/In-detail/JobKeeper—timeline-of-content-updates/

Register/Enrol 

Q. As an employerdo I have to register/enrol for JobKeeper?

“Employers can choose to participate in the scheme and then nominate the employees they are entitled to claim for. An employer can choose not to participate in the JobKeeper payment.” 

Read more: https://www.ato.gov.au/general/jobkeeper-payment/employers/

Employers can choose to participate in the JobKeeper payment and nominate the employees they want to claim the JobKeeper payment for. It is not compulsory.

Read more: https://www.ato.gov.au/general/jobkeeper-payment/tax-professionals/

Q. Can my canteen manager register the P&C Association for JobKeeper?

No. The employer (P&C Association) registers for JobKeeper or a registered tax agent.

Read more: https://www.ato.gov.au/general/jobkeeper-payment/employers/enrol-and-apply-for-the-jobkeeper-payment/#ApplyfortheJobKeeperpaymentearlyMay2020

Q. Who decides whether we apply for JobKeeper?

Employers must elect to participate in the scheme. They will need to make an application to the Australian Taxation Office (ATO) and provide supporting information demonstrating a downturn in their business.” 

Read more: https://treasury.gov.au/sites/default/files/2020-04/Fact_sheet_supporting_businesses_4.pdf

Q. Do we inform employees if we register for JobKeeper?

Yes, as they are reuired to sign a document that must be submitted

Read More: https://www.ato.gov.au/general/jobkeeper-payment/employers/enrol-and-apply-for-the-jobkeeper-payment/

Q. Is there a cutoff for our P&C Association to enrol for JobKeeper?

Step 6 – From 20 April 2020, you can enrol with us for the JobKeeper payment using the Business Portal and authenticate with myGovID. You must do this by the end of April to claim JobKeeper payments for April.”

Read More:https://www.ato.gov.au/general/jobkeeper-payment/employers/enrol-and-apply-for-the-jobkeeper-payment/#ApplyfortheJobKeeperpaymentearlyMay2020

Eligibility

Q. Does our P&C Association meet the criteria for the JobKeeper payment?

Q. Our employees have told us that we are eligible JobKeeper and must apply, is this correct? 

Q. A forum I am a part of has said that P&C Associations are eligible, and I should ensure my employer the P&C Association registers?

Q. Does our P&C Association as an employer and our employees both need to meet the separate criteria required by ATO for us to be eligible to register for JobKeeper?

Yes. There is separate criteria to be met by both the employer and the employee before an employer can enrol for the jobKeeper payment.

After you have worked out you are an eligible employer, you then need to check whether your employee or employees are eligible.”

Read more – Employer eligibility: https://www.ato.gov.au/general/jobkeeper-payment/employers/eligible-employers/#Notforprofitorganisations

Read more – Employee eligibility: https://www.ato.gov.au/General/JobKeeper-Payment/Employers/Your-eligible-employees/

Q. If I am a casual employee, am I entitled to the JobKeeper payment?

Read more: https://www.ato.gov.au/General/JobKeeper-Payment/Employers/Your-eligible-employees/

Note: If an employer is eligible it does not automatically mean their employees are.

Confirmation of Eligibility

Q. When will our P&C Association know if they meet the criteria and are eligible for the payment?

Confirmation of eligible employees you will claim JobKeeper Payment for (available from 4 May 2020 onwards)

Read more: https://www.ato.gov.au/general/jobkeeper-payment/employers/enrol-and-apply-for-the-jobkeeper-payment/#ApplyfortheJobKeeperpaymentearlyMay2020

Q. We have to pay the $1500 to the employee before getting reimbursed from the ATO, what if we do not have the funds for this?

What you can’t do:

You cannot claim the JobKeeper payment on behalf of employees who were not paid at least $1,500 before tax during each JobKeeper payment period.

You cannot claim the JobKeeper payment in advance. The JobKeeper payment is a reimbursement from us to an employer in arrears, and cannot be paid in advance in any circumstances.”  

Read more: https://www.ato.gov.au/general/jobkeeper-payment/employers/paying-your-eligible-employees/

Charity Status for P&C Associations 

Q. Does our P&C Association need to be registered with ACNC?

Yes. It is also very important that the ‘Responsible Persons’ on ACNC is up to date.

Read more: https://treasury.gov.au/sites/default/files/2020-04/Fact_sheet_supporting_businesses_4.pdf

Q. How do I know if our P&C Association is registered with ACNC?

Search for your P&C Association by entering your ABN (no spaces) on the ACNC website.

Read more: www.acnc.gov.au

Q. If our P&C Association is not registered with ACNC, will we still be eligible to apply for the JobKeeper payment?

To be recognised as a charity, P&C Associations must be registered with ACNC – Australian Charities and Not for Profit Commission.

 Additional Questions 

Q. How can our P&C Association decide on expenses if we can’t meet to approve them?

Q. Are we the Office Bearers, going to be held liable if we make the payments and then our P&C Association does not meet the criteria and we are not reimbursed by the ATO?

Currently there is no enabler in the Standard or Prescribed Constitution that allows for meetings other than face to face, as per Clause 15 in Standard Constitution and Clause 16 in the Prescribed Constitution:

“Accounts

The funds of the association shall be banked in the name of the association with any institution holding trustee status within the meaning of the Trustee Act 1925, provided interest is allowed on the balance. The account shall be operated by two or more officers of the association delegated in that behalf by the association. No commitment shall be entered into for the expenditure of association funds, except by resolution of a meeting of the association. The association must make such financial reports about its affairs (including reports of its auditors) as are required by its rules or by the Minister for Education and Training.”

Read more: https://www.pandc.org.au/membersguides/

Q. What happens when we don’t usually pay employees over school holidays, do we now need to pay our employees for that time?

“If employers do not continue to pay their employees for each pay period, they will cease to qualify for the JobKeeper payment” 

Read more: https://www.ato.gov.au/general/JobKeeper-Payment/

Q. Are JobKeeper payments to be considered expenses or wages and therefore operational costs?

“The JobKeeper payment is open to eligible employers to enable them to pay their eligible employee’s salary or wages of at least $1,500 (before tax) per fortnight.”

Read more: https://www.ato.gov.au/general/JobKeeper-Payment/

Q. Are all P&C Association canteens in put tax operated?

This is a question only a P&C Association can answer, therefore you would need to check if they are registered for GST with ABR.

Read More: https://abr.business.gov.au/

Q.Do we need to let P&C Federation know that we applied for JobKeeper?

No. Each P&C Association is autonomous.

Q. Is there any indication as to when the canteens will reopen?

There is currently no indication when canteens will be allowed to open.

Overview

JobKeeper Overview

The government has introduced a $130 billion JobKeeper Payment scheme to support businesses significantly affected by the coronavirus to help keep more Australians in jobs. 

The JobKeeper payment is open to eligible employers to enable them to pay their eligible employee’s salary or wages of at least $1,500 (before tax) per fortnight. 

Eligible employers will be reimbursed a fixed amount of $1,500 per fortnight for each eligible employee. 

Employers will need to pay eligible employees a minimum of $1,500 (before tax) per fortnight to claim the JobKeeper payment. This will be paid to the employer in arrears each month by us (ATO). The first payments to eligible employers will commence in the first week of May 2020. JobKeeper payments can be made for the period beginning 30 March 2020. 

If employers do not continue to pay their employees for each pay period, they will cease to qualify for the JobKeeper payment. 

To be eligible for the JobKeeper payment, employers and their employees must meet a range of criteria.

Read more: https://www.ato.gov.au/general/JobKeeper-Payment  

Extension of time to enrol

Extension of time to enrol for the JobKeeper scheme

The Commissioner has extended the time to enrol for the initial JobKeeper periods, from 30 April 2020 until 31 May 2020.

If you enrol by 31 May 2020, you will still be able to claim for the JobKeeper fortnights ending in April and May, provided you meet all the eligibility requirements for each for those fortnights. This includes having paid your employees by the appropriate date for each fortnight.

For the first two fortnights (30 March – 12 April, 13 April – 26 April), we will accept the minimum $1,500 payment for each fortnight has been paid by you even if it has been paid late, provided it is paid by 8 May 2020. If you do not pay your staff by this date, you will not be able to claim JobKeeper for the first two fortnights.

You can enrol and claim for JobKeeper earlier if you choose. For example, you can enrol by the end of April to claim JobKeeper payments for the two fortnights in April.

Guidance for NSW P&C Associations

JobKeeper Guidance for NSW P&C Associations

This guidance is based on a discussion with the ATO as at 30 April 2020. While P&C Federation offers this analysis based on our understanding, P&C Federation encourages all P&C Associations to seek professional advice with regards to your P&C Association’s circumstances and structure. For further clarification regarding your P&C Association’s particular situation, P&C Federation advises you contact the ATO for advice.

[This guidance is correct to the best of the P&C Federation’s understanding as at 2 May 2020.]

[Updates since the original version of this document on 26 April:

  1. Revenue anomalies (such as a large, one-off revenue item) that result in a P&C satisfying the revenue reduction test do not have to be adjusted or removed. See under new heading “Revenue Reduction Test Satisfied only due to an Income Anomaly”.  (30 April)
  2. Charities to be able to choose whether or not to include government grants when evaluating their revenue reduction. See changes under headings “Calculation of GST Turnover” and “Inclusion or Exclusion in GST Turnover of Common P&C Revenue Items”.  (30 April)]
  3. Noted that the inclusion or exclusion of input-taxed revenue for P&Cs (ant other not-for-profit organisations) is being reviewed by the government, but no changes to the current rules have been made yet. See addition under headings “Calculation of GST Turnover” and “Inclusion or Exclusion in GST Turnover of Common P&C Revenue Item”.  (2 May)
  4. Removed inapplicable statement that an input-taxed sub-entity must charge GST if its revenue exceeds $75,000 pa if the parent entity is not a charity. For P&Cs, only P&Cs that are charities are allowed to create Input-taxed sub-entities.  See change under heading “Calculation of GST Turnover”.  (2 May)
  5. Updated guidance as to timing of donations to a P&C where the donations are collected by a school and not forwarded to the P&C. See change to last paragraph under heading “Timing of Donations Received by School on behalf of a P&C”.  (2 May)
  6. Updated guidance for inclusion or exclusion of fund-raising event revenue in “GST Turnover” for P&Cs not registered for GST. See change under headings “P&Cs Not Registered for GST” and “Inclusion or Exclusion in GST Turnover of Common P&C Revenue Item”.  (2 May)
  7. Added a comment regarding what form a donation can take. See changes under heading “Inclusion of Donations in “GST Turnover”.  (2 May)
  8. Added a comment that an employee’s nomination of an employer is final and cannot be changed. See addition under heading “Only One Employer Eligible for JobKeeper Payments for the One Person”.  (2 May)
  9. Added a link to the ATO website description of the criteria used to establish whether a casual employee is eligible for JobKeeper. See change under heading “Eligibility of Long-Term Casual Employees”.  (2May)
  10. Confirmation that P&Cs that are charities are able to choose to exclude government grants from the calculation of GST turnover. See change under headings “Calculation of GST Turnover” and “Inclusion or Exclusion in GST Turnover of Common P&C Revenue Item”.  (2 May)
  11. Clarified the inclusion of grant income where the grant included GST. See change under headings “Inclusion or Exclusion in GST Turnover of Common P&C Revenue Item”.  (2 May) ]
  12. Updated comments on ability to exclude grant income to recognise that the ATO website describes this option. See changes under headings “Calculation of GST Turnover” and “Inclusion or Exclusion in GST Turnover of Common P&C Revenue Item”.  (17 May)
  13. Included comments on inclusion or exclusion of raffle ticket sales in the calculation of GST turnover. See change under heading “Inclusion or Exclusion in GST Turnover of Common P&C Revenue Item”.  (17 May)  ]

The JobKeeper payment is intended to assist businesses, including P&C Associations, affected by COVID-19 to cover the costs of wages of their employees.  It is only relevant to P&Cs that have employees, either permanent or casual.  Additionally, if all of a P&C’s potentially eligible employees are already participating in the JobKeeper scheme through another employer there is no reason for a P&C to further investigate the scheme.  No employee can participate in the JobKeeper scheme through more than one employer.

The JobKeeper scheme starts on 30 March 2020 and ends on 27 September 2020.

A business that has suffered a substantial decline in turnover can be entitled to a JobKeeper payment of $1,500 per fortnight for each eligible employee. It is a condition of entitlement that the business has paid gross salary and wages of at least that amount to the employee in the fortnight, even where that amount is greater than the employee’s normal pay. 

The Australian Taxation Office (ATO) reimburses the business for JobKeeper payments at a rate of $1,500 per fortnight per participating employee.  These reimbursement payments are made by the ATO in the calendar month following the month in which the JobKeeper payments are made to employees.   

The JobKeeper scheme, eligibility requirements and processes are described at and from https://www.ato.gov.au/general/JobKeeper-Payment/?=Redirected_URL.

For those interested, the legal specifications of the JobKeeper scheme are at https://www.legislation.gov.au/Details/F2020L00419 with an accompanying explanatory statement at https://www.legislation.gov.au/Details/F2020L00419/Explanatory%20Statement/Text.

This guidance document does not aim to replace the documentation and explanations provided by the ATO at the above link.  The information available from the ATO should be consulted first. 

The purpose of this document is to provide clarifications which are specific to NSW P&C Associations.

Participation in the JobKeeper Scheme

Participation in the JobKeeper scheme is not mandatory.  If a P&C satisfies the employer eligibility requirements, as described at https://www.ato.gov.au/General/JobKeeper-Payment/Employers/Eligible-employers/, it has the option of deciding to enrol, using the process described at https://www.ato.gov.au/General/JobKeeper-Payment/Employers/Enrol-for-the-JobKeeper-payment/.  Enrolment and subsequent reporting processes require a P&C Office Bearer, typically the P&C’s Treasurer, to have a myGovID which enables a login to the P&C’s activity statement records through the ATO’s Business Portal.  Alternatively, a tax agent can act on the P&C’s behalf.    

If a P&C is eligible and decides to participate in the JobKeeper scheme, its employees must be notified and all eligible employees who decide to participate must be included.  An eligible employee cannot be excluded from the scheme once the P&C has decided to participate. Employee eligibility and associated processes are described at https://www.ato.gov.au/General/JobKeeper-Payment/Employers/Your-eligible-employees/.

Employer Eligibility – Reduction in Turnover

One of the employer eligibility tests requires the P&C to confirm that it has experienced or expects to experience a reduction in “GST turnover” (further described below) for a relevant period in 2020 compared to the same period in 2019. 

Once a P&C has established its eligibility to participate in the JobKeeper scheme, all of its employees are potentially eligible to participate, if they satisfy all of the employee eligibility requirements (as described later), even if they work for a part of the P&C that has not had its revenue included in the reduction of turnover test.      

The required reduction in turnover to be eligible for JobKeeper is 15% (or more) of the revenue in the 2019 comparison period if the P&C is registered with the Australian Charities and Not-for-profits Commission (ACNC) as a charity. If a P&C is not registered as a charity (though all P&Cs should be registered charities), the required turnover reduction is 30% (or more).

Once the P&C has established the relevant reduction it has satisfied this reduction in turnover test for the remainder of the period in which JobKeeper payments are made. The P&C does not have to continue to have a reduction in turnover in any later part of the JobKeeper period. 

The following table describes the available comparison periods.

For JobKeeper payments to employees starting in:The corresponding available comparison periods are:
April 2020March 2019 vs March 2020
April 2019 vs April 2020
April-June 2019 vs April-June 2020
May 2020Any month March-May 2019 vs the corresponding month in 2020 OR
April-June 2019 vs April-June 2020
June 2020Any month March-June 2019 vs the corresponding month in 2020 OR
April-June 2019 vs April-June 2020
July 2020Any month March-July 2019 vs the corresponding month in 2020 OR
April-June 2019 vs April-June 2020 OR
July-September 2019 vs July-September 2020
August 2020Any month March-Aug 2019 vs the corresponding month in 2020 OR
April-June 2019 vs April-June 2020 OR
July-September 2019 vs July-September 2020
September 2020Any month March-Sept 2019 vs the corresponding month in 2020 OR
April-June 2019 vs April-June 2020 OR
July-September 2019 vs July-September 2020

Note: The use of some comparison periods will require a projection or estimate of revenue for the period in 2020.


Alternative Tests for Assessing Reduction in “GST turnover”

If there is an anomaly in the revenue for either a 2019 or 2020 comparison period which results in the P&C not showing a sufficient decline in revenue to qualify for JobKeeper eligibility there may be an “alternative test” of revenue reduction available. The circumstances in which an alternative test is available are varied and include situations such as a P&C being newly formed and not having a corresponding period in 2019 or having an unusually low income in the 2019 period or having an irregular or particularly lumpy income which distorts the comparison. The potential and process for applying an “alternative test” is described at https://www.ato.gov.au/General/JobKeeper-Payment/In-detail/Applying-the-turnover-test/?anchor=Alternativetest#Alternativetest.

Revenue Reduction Test Satisfied only due to an Income Anomaly

If there was an income anomaly in either the 2019 or 2020 comparison period which results in the P&C satisfying the revenue reduction test, this result is definitive and there is no need to remove the effect of the anomaly from the affected period nor any need to determine whether one of the “alternative tests” should be used.  For example, if the 2019 comparison period’s revenue is unusually large due to a large, unusual or one-off revenue item which has no counterpart in the 2020 comparison period and it is only this unusual 2019 income which results in the requisite revenue reduction from 2019 to 2020, the P&C has satisfied the revenue reduction test

Calculation of “GST turnover”

The revenue (or turnover) reduction test is done by comparing the “GST turnover” for the two comparison periods, as described at https://www.ato.gov.au/General/JobKeeper-Payment/In-detail/Applying-the-turnover-test/.

A business’s “GST turnover” is defined as being the revenue on which it charges GST (or would have charged GST if the business had been registered for GST) but is redefined or extended for JobKeeper purposes to also include certain donations received by not-for-profit organisations (such as P&Cs).  See later for a description of the conditions under which certain donations must be included in the calculation of “GST turnover” for JobKeeper eligibility purposes. P&Cs which are charities may also choose to exclude government grants from the calculation of “GST turnover” for JobKeeper eligibility purposes (see below).

The inclusion or exclusion of a P&C’s input-taxed revenue is currently being reviewed by the government.  The current rules, as at the time of writing and in line with the principle in the preceding paragraph, are elaborated below.  This guideline document will be updated, if necessary, when and if the current rules are changed.  

If a P&C is a charity registered with the ACNC it may choose to exclude from “GST turnover” any grants it has received from any Australian government (Federal, state or local) or (improbably) from the United Nations or any of its agencies.  Government grants will continue to be included in “GST turnover” unless the P&C notifies the ATO of a decision to exclude them.  The process for this has not yet been published by the ATO.  The option to exclude government grants is briefly reflected on the ATO website at https://www.ato.gov.au/General/JobKeeper-Payment/Employers/Eligible-employers/ under the heading ‘Not-for-profit organisations’.  For those interested, the legal specifications for this modification to “GST turnover” are at https://www.legislation.gov.au/Details/F2020L00546, with an explanatory statement at https://www.legislation.gov.au/Details/F2020L00546/Explanatory%20Statement/Text

A P&C’s canteen revenue is excluded from the calculation of “GST turnover” because of the provisions of GST law that result in school canteens run by not-for-profit entities (such as all P&Cs) being input-taxed, as described at https://www.ato.gov.au/non-profit/your-organisation/gst/gst-concessions/#schooltuckshops.  (While this ATO guidance states that a P&C has to choose to operate a canteen as input-taxed and could instead operate a canteen with GST being charged, no P&C is known to have done this and all P&C-operated canteens are believed to be input-taxed.)

If a P&C is registered for GST and is a charity registered with the ACNC and makes use of the charity tax concessions to create input-taxed sub-entities, as described at https://www.ato.gov.au/Non-profit/your-organisation/gst/gst-branches,-groups-and-non-profit-sub-entities/?anchor=nonprofitsubentities#nonprofitsubentities, then the revenue of those input-taxed sub-entities is excluded from the calculation of “GST turnover”.  Note that under the requirements for being input-taxed, a sub-entity cannot remain input-taxed but must instead charge GST on its sales if its annual revenue exceeds $150,000.

The inclusion of revenue from a fundraising event in total “GST turnover” will depend on whether the event has satisfied the criteria described at https://www.ato.gov.au/non-profit/your-organisation/gst/gst-concessions/#fundraisingevent and the P&C decided to treat the event as input-taxed or not, in compliance with the specified requirements.  If the P&C had decided to treat the fundraising event as input-taxed, the associated revenue would be excluded from the calculation of “GST turnover”.  Conversely, if the P&C had not decided to treat the fundraising event as input-taxed (and therefore included GST in any sales revenue associated with the fundraising event), the associated revenue would be included in the calculation of “GST turnover”. 

P&Cs Not Registered for GST

If a P&C is not registered for GST, “GST turnover” is calculated by including all of the revenue that would have included GST had the P&C been registered for GST, and making the assumption that the P&C did not elect to create input-taxed sub-entities, plus adding donations that satisfy the conditions for including donations (as described below).  Canteen revenue remains excluded from “GST turnover” because all P&Cs are assumed to treat canteen revenue as input-taxed. Fund-raising event revenue may also be excluded on the same basis as described previously for P&Cs registered for GST.       

A table listing the common sources of P&C revenue and applying the above is included later.

Change in GST Registration Status

If a P&C is registered for GST in one period used for determining the reduction in its turnover and not registered for GST in the other period used for the comparison, it uses the approach applicable to its GST registration status at each separate period. For the period during which the P&C was registered for GST, the P&C’s “GST turnover” excludes the GST component from its revenue. 

Inclusion of Donations in “GST Turnover”

Donations are included in “GST turnover” of a P&C under one but not both of the following conditions:

  1. If the P&C has Deductible Gift Recipient status for a School Building Fund that has the same ABN as the P&C, any tax-deductible donations to the Building Fund in the relevant period are to be included in the total “GST turnover” of the P&C for that period. No other donations received by the P&C are to be included in “GST turnover”.
  1. If the above does not apply and the P&C is registered as a charity with the ACNC then any donations received by the P&C (which, by operation of the previous condition, cannot be donations to a DGR) in the relevant period are to be included in the total “GST turnover” of the P&C for that period. Note that “donations” include gifts of money, property (provided the market value of the property exceeds $5,000) and listed Australian shares.        

If the P&C does not satisfy either of the above conditions then no donation income it receives is to be included in the total “GST turnover” for any period.

However, while the above reflects the current JobKeeper specifications for including or excluding donations in “GST turnover” there is a strong possibility that the above specification will be changed. 

Timing of Donations Received by School on behalf of a P&C Association

Many schools collect donations requested by a P&C as part of a single payment by a parent to the school which also includes voluntary contributions requested by the school and/or subject/material charges.  In this case, where it is either impossible or impractical to determine the date on which the donations to the P&C were made by the various parents, it is reasonable to use the date(s) on which the donations were deposited in the P&C’s bank account (following their transfer by the school) as the date(s) of the donations for the purpose of determining in which period they occur for the turnover reduction test.    

Some P&Cs have donations collected by their associated school but do not have those donations transferred to the P&C’s bank account.  This situation could occur where a school retains the donations on behalf of a P&C until a sum is approved by the P&C for use by the school, either immediately upon collection or at a later date.  Note that the P&C Federation recommends that this approach not be used and that all donations collected on behalf of a P&C should be transferred to the P&C.  In this situation, the P&C must make a reasonable judgement as to when the donations are received by the P&C.  Document the decision and any reasons for it in case there is a subsequent query from the ATO.    

Inclusion or Exclusion in “GST Turnover” of Common P&C Revenue Items

The inclusion or exclusion of a P&C’s input-taxed revenue is currently being reviewed by the government.  The table below reflects the current rules, as at the time of writing.  This guideline document will be updated, if necessary, when and if the current rules are changed. 

Note: Some P&C Association run canteens are registered for GST however, the majority of P&C Association run canteens are in-put tax operated.

Revenue item: If the P&C is registered for GST: If the P&C is not registered for GST:
Band program feesExclude if within an input-taxed sub-entity (ie GST is not charged)
Include if not within an input-taxed sub-entity (ie, GST is charged)
Include
Before and after school care feesExclude if within an input-taxed sub-entity (ie GST is not charged)
Include if not within an input-taxed sub-entity (ie, GST is charged)
Include
Canteen salesExclude (If in-put tax operated)
Include (if GST added to products sold)
Exclude
Commission income (eg Entertainment Books)Include (but exclude if made directly to an input-taxed sub-entity with a function which legitimately includes the commission-related activity)Include
Donations and gifts (including donations and gifts to or at a fundraising event)
Refer to earlier explanationRefer to earlier explanation
Fundraising event revenue (excluding donations and gifts)Exclude if fundraising event was treated as input-taxed in line with requirements outlined earlier (ie, GST was not charged)
Include if fund-raising event was not input-taxed (ie GST was charged on ticket sales, etc)
Exclude if the fund-raising event was eligible for the fund-raising event GST concession and the P&C elected to use the concession (as described earlier)
Include if the fund-raising event was not held under the fund-raising event GST concession
Grants – Government (Federal, state or local)Include if the P&C is not a registered charity

Include if the P&C is a registered charity and has not chosen to exclude the grant income

Exclude if the P&C is a registered charity and has chosen to exclude the grant income and has notified the ATO of this exclusion
As for P&Cs registered for GST
Grants - Non-governmentInclude (but exclude if the grant did not include a GST component and was made directly to an input-taxed sub-entity with a function which legitimately includes the grant-related activity)Include
Input-taxed sub-entity revenueExcludeNot applicable: Input-taxed sub-entities can only exist if a P&C is registered for GST
Insurance claimsExclude if for loss within an input-taxed sub-entity
Include if for loss not within an input-taxed sub-entity
Include
Interest and other investment incomeExcludeExclude
Raffles or bingo (ticket sales)Include if the P&C is not a registered charity: the amount to be included is ten elevenths of the difference between total ticket sales and total monetary prizes

Exclude if the P&C is a registered charity
As for P&Cs registered for GST
P&C membership feesIncludeInclude
Uniform shop salesExclude if within an input-taxed sub-entity (ie GST is not charged)
Include if not within an input-taxed sub-entity (ie, GST is charged)
Include

Employee Eligibility

Once a P&C determines it is eligible for JobKeeper as an employer and decides to join the scheme, it must next determine which of its employees are eligible and wish to participate.  The P&C cannot discriminate between its employees.  Once the P&C enrols in JobKeeper all eligible employees who wish to participate must be included as soon as they have completed the necessary forms and sent them to the P&C. The employee eligibility rules and associated processes are described at https://www.ato.gov.au/General/JobKeeper-Payment/Employees/Eligible-employees/.

P&C employees who were employed as at 1 March 2020 and were either permanent employees (part-time or full-time) or long-term casuals (see below for further explanation) are potentially eligible. There are other requirements applying to eligibility of employees and these are further explained at the above link and also on the employee JobKeeper declaration form described and provided at https://www.ato.gov.au/Forms/JobKeeper-payment—employee-nomination-notice/.

Only One Employer Eligible for JobKeeper Payments for the One Person

An employee can only have the JobKeeper payment in respect of one employer.  If a P&C employee also has at least one other employer, the following applies:

  1. If the employee is employed on a permanent basis by one or more employers, the employee chooses which JobKeeper-enrolled permanent employer will receive the JobKeeper payment and otherwise comply with the JobKeeper scheme requirements. If none of the employee’s permanent employers are participating in the JobKeeper scheme, the employee cannot participate in the JobKeeper scheme. Any permanent employment prevents the employee participating on the basis of casual employment with a different employer.
  1. If the employee is not employed on a permanent basis by any employer but is employed on a casual basis by more than one employer and more than one of those employers are participating in the JobKeeper scheme, the employee chooses which JobKeeper-enrolled casual employer will receive the JobKeeper payment and otherwise comply with the JobKeeper scheme requirements.
  2. Once an employee has nominated an employer there is no possibility of changing the nomination to another employer.  This applies even where the nominated employer ceases to be involved in JobKeeper, (eg if it goes out of business).

Eligibility of Long-Term Casual Employees

The JobKeeper scheme provides for the inclusion of “long-term casual employees”.  The criteria for determining whether a casual employee qualifies for JobKeeper are briefly described (at the earlier employee eligibility link) as a casual employee who has been “employed on a regular and systematic basis for at least 12 months as at 1 March 2020”.  This is further explained by the ATO as “a casual employee is likely to be employed on a regular and systematic basis where the employee has a recurring work schedule or a reasonable expectation of ongoing work”.

See:https://www.ato.gov.au/General/JobKeeper-Payment/In-detail/Employee-test-requirements/?page=2#Consideredalongtermcasualemployee and the examples listed there.

FAQs for Employers and Employees

JobKeeper Payment FAQs for Employers and Employees

P&C Federation has collated Frequently Asked Questions (FAQs) that we have received from members over the last few weeks. All information and links provided are that of the ATO and other government agencies. 

 

To be eligible for the JobKeeper payment, employers and their employees must meet a range of criteria.

Read more: https://www.ato.gov.au/general/JobKeeper-Payment

JobKeeper – timeline of content updates

Q. Where can I find the time line information for enrolling etc?

A timeline of new information and content updates for the JobKeeper Payment.

Read More: https://www.ato.gov.au/General/JobKeeper-Payment/In-detail/JobKeeper—timeline-of-content-updates/

Register/Enrol 

Q. As an employerdo I have to register/enrol for JobKeeper?

“Employers can choose to participate in the scheme and then nominate the employees they are entitled to claim for. An employer can choose not to participate in the JobKeeper payment.” 

Read more: https://www.ato.gov.au/general/jobkeeper-payment/employers/

Employers can choose to participate in the JobKeeper payment and nominate the employees they want to claim the JobKeeper payment for. It is not compulsory.

Read more: https://www.ato.gov.au/general/jobkeeper-payment/tax-professionals/

Q. Can my canteen manager register the P&C Association for JobKeeper?

No. The employer (P&C Association) registers for JobKeeper or a registered tax agent.

Read more: https://www.ato.gov.au/general/jobkeeper-payment/employers/enrol-and-apply-for-the-jobkeeper-payment/#ApplyfortheJobKeeperpaymentearlyMay2020

Q. Who decides whether we apply for JobKeeper?

Employers must elect to participate in the scheme. They will need to make an application to the Australian Taxation Office (ATO) and provide supporting information demonstrating a downturn in their business.” 

Read more: https://treasury.gov.au/sites/default/files/2020-04/Fact_sheet_supporting_businesses_4.pdf

Q. Do we inform employees if we register for JobKeeper?

Yes, as they are reuired to sign a document that must be submitted

Read More: https://www.ato.gov.au/general/jobkeeper-payment/employers/enrol-and-apply-for-the-jobkeeper-payment/

Q. Is there a cutoff for our P&C Association to enrol for JobKeeper?

Step 6 – From 20 April 2020, you can enrol with us for the JobKeeper payment using the Business Portal and authenticate with myGovID. You must do this by the end of April to claim JobKeeper payments for April.”

Read More:https://www.ato.gov.au/general/jobkeeper-payment/employers/enrol-and-apply-for-the-jobkeeper-payment/#ApplyfortheJobKeeperpaymentearlyMay2020

Eligibility

Q. Does our P&C Association meet the criteria for the JobKeeper payment?

Q. Our employees have told us that we are eligible JobKeeper and must apply, is this correct? 

Q. A forum I am a part of has said that P&C Associations are eligible, and I should ensure my employer the P&C Association registers?

Q. Does our P&C Association as an employer and our employees both need to meet the separate criteria required by ATO for us to be eligible to register for JobKeeper?

Yes. There is separate criteria to be met by both the employer and the employee before an employer can enrol for the jobKeeper payment.

After you have worked out you are an eligible employer, you then need to check whether your employee or employees are eligible.”

Read more – Employer eligibility: https://www.ato.gov.au/general/jobkeeper-payment/employers/eligible-employers/#Notforprofitorganisations

Read more – Employee eligibility: https://www.ato.gov.au/General/JobKeeper-Payment/Employers/Your-eligible-employees/

Q. If I am a casual employee, am I entitled to the JobKeeper payment?

Read more: https://www.ato.gov.au/General/JobKeeper-Payment/Employers/Your-eligible-employees/

Note: If an employer is eligible it does not automatically mean their employees are.

Confirmation of Eligibility

Q. When will our P&C Association know if they meet the criteria and are eligible for the payment?

Confirmation of eligible employees you will claim JobKeeper Payment for (available from 4 May 2020 onwards)

Read more: https://www.ato.gov.au/general/jobkeeper-payment/employers/enrol-and-apply-for-the-jobkeeper-payment/#ApplyfortheJobKeeperpaymentearlyMay2020

Q. We have to pay the $1500 to the employee before getting reimbursed from the ATO, what if we do not have the funds for this?

What you can’t do:

You cannot claim the JobKeeper payment on behalf of employees who were not paid at least $1,500 before tax during each JobKeeper payment period.

You cannot claim the JobKeeper payment in advance. The JobKeeper payment is a reimbursement from us to an employer in arrears, and cannot be paid in advance in any circumstances.”  

Read more: https://www.ato.gov.au/general/jobkeeper-payment/employers/paying-your-eligible-employees/

Charity Status for P&C Associations 

Q. Does our P&C Association need to be registered with ACNC?

Yes. It is also very important that the ‘Responsible Persons’ on ACNC is up to date.

Read more: https://treasury.gov.au/sites/default/files/2020-04/Fact_sheet_supporting_businesses_4.pdf

Q. How do I know if our P&C Association is registered with ACNC?

Search for your P&C Association by entering your ABN (no spaces) on the ACNC website.

Read more: www.acnc.gov.au

Q. If our P&C Association is not registered with ACNC, will we still be eligible to apply for the JobKeeper payment?

To be recognised as a charity, P&C Associations must be registered with ACNC – Australian Charities and Not for Profit Commission.

 Additional Questions 

Q. How can our P&C Association decide on expenses if we can’t meet to approve them?

Q. Are we the Office Bearers, going to be held liable if we make the payments and then our P&C Association does not meet the criteria and we are not reimbursed by the ATO?

Currently there is no enabler in the Standard or Prescribed Constitution that allows for meetings other than face to face, as per Clause 15 in Standard Constitution and Clause 16 in the Prescribed Constitution:

“Accounts

The funds of the association shall be banked in the name of the association with any institution holding trustee status within the meaning of the Trustee Act 1925, provided interest is allowed on the balance. The account shall be operated by two or more officers of the association delegated in that behalf by the association. No commitment shall be entered into for the expenditure of association funds, except by resolution of a meeting of the association. The association must make such financial reports about its affairs (including reports of its auditors) as are required by its rules or by the Minister for Education and Training.”

Read more: https://www.pandc.org.au/membersguides/

Q. What happens when we don’t usually pay employees over school holidays, do we now need to pay our employees for that time?

“If employers do not continue to pay their employees for each pay period, they will cease to qualify for the JobKeeper payment” 

Read more: https://www.ato.gov.au/general/JobKeeper-Payment/

Q. Are JobKeeper payments to be considered expenses or wages and therefore operational costs?

“The JobKeeper payment is open to eligible employers to enable them to pay their eligible employee’s salary or wages of at least $1,500 (before tax) per fortnight.”

Read more: https://www.ato.gov.au/general/JobKeeper-Payment/

Q. Are all P&C Association canteens in put tax operated?

This is a question only a P&C Association can answer, therefore you would need to check if they are registered for GST with ABR.

Read More: https://abr.business.gov.au/

Q.Do we need to let P&C Federation know that we applied for JobKeeper?

No. Each P&C Association is autonomous.

Q. Is there any indication as to when the canteens will reopen?

There is currently no indication when canteens will be allowed to open.

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