6 August 2021
by David Prichard
- Related topics
- Corporate Tax & Regulatory
Whilst the programs have been announced for quite a while, there is still a large gap in information to enable many business owners to determine whether they are eligible. This combined with the (best) intentions of ServiceNSW to assist via telephone support has resulted in ServiceNSW being flooded with inquiries resulting in significant delays in responding.
This week we have been able to clarify a number of matters in relation to the announced programs:
- Aggregated Annual turnover – despite the term utilising a well-known income tax law concept, we understand that in respect to the NSW Covid-19 support programs – aggregated annual turnover is limited to Australian turnover only. As such, non-Australian turnover of foreign related parties do not need to be taken into account.
- In determining whether the aggregated turnover threshold has been reached businesses can ignore any amounts that relate to JobKeeper received from the Federal Government.
- Whilst there is no guidance on the alternate tests for the JobSaver program, some granularity for the alternate test scenario for the Covid-19 grants is available. For the grants program, you need to have experienced a decline in turnover of 30% or more due to the Public Health Order over a minimum 2-week period from 26 June 2021 to 17 July 2021 compared to, the same period in 2019, or the same period in 2020, or the 2-week period immediately before the Greater Sydney lockdown commenced (11 June to 25 June 2021)
- Given that the grants program and the JobSaver program have a number of identical rules, it would appear logical that a similar approach would be taken for the JobSaver program – stay tuned.
- The JobSaver program does not require any payments to be made to employees. As such, employees may be stood down (and therefore eligible for support at the individual level) whilst the business receives the JobSaver support.
- There is still no guidance in relation to a variety of common taxpayer situations including:
*Service entity arrangements;
*The approach to income tax consolidated groups;
*How the rules interact with GST consolidated groups;
*What happens if your business does not have a 30 June year end.
ServiceNSW have promised updated information in relation to the JobSaver program in the coming days and therefore we hope to be able to provide further guidance shortly.
Lastly, it has been confirmed that payroll tax deferrals will be available until 7 October 2021 and interest free 12-month terms are able to be accessed for deferred payroll tax payments.
If you have any questions, please don’t hesitate to contact your Engagement Partner – we remain committed to helping our clients in any way we can.