26 August 2021
by David Prichard and Karen Le
- Related topics
- Corporate Tax & Regulatory
Slowly we are receiving more clarity from ServiceNSW, however, it is not a clean and clear process with conflicting information and guidance being received.
- Service type arrangements – ServiceNSW have updated the guidelines to provide that service entity arrangements will follow those of the JobKeeper regime (remember that?) such that businesses may use the sum of the current GST turnovers of the group members to which it supplied employee labour services to calculate decline in turnover.
- There is continued uncertainty around a number of issues including:
*Documentation required for members of a tax consolidated group (income or GST), however, a letter from an accountant or confirmation of the membership of the tax consolidated group from the ATO portal would appear to be a starting point.
*Whilst guidance has been provided for entities with SAPs for the expanded rules to large businesses in the tourism, hospitality and recreation industry, there is no definitive guidance for entities with SAPs that fall outside this scope. As such, entities would appear to need to use the corresponding SAP period.
*Despite the wording reflecting that a decline in turnover is “due to the public health order”, ServiceNSW are indicating that the test is a bright line turnover comparison test. This doesn’t reconcile to the wording of the guidelines.
- Receiving payments – current guidance is that once deemed eligible, businesses will receive automatic fortnightly payments, with payments made in arrears with the first payment backdated to 18 July 2021. This is the case even if the business only became eligible after 18 July. This appears to contradict the position adopted with the expanded hospitality scheme.
- Underpayments – ServiceNSW are currently aware that certain businesses may currently have been underpaid. We have continued to receive mixed messages about how this issue will be rectified but understand that ServiceNSW intends to directly reach out to business via email (businesses are encouraged to check their “junk” folder) or may have amounts automatically back paid for any additional amounts which were due. To the extent there have been any other issues with your payments, please reach out to us and we would be more than happy to assist.
We continue to receive new information from ServiceNSW regarding JobSaver and will continue to share what we learn. Should you have any questions please don’t hesitate to contact us.