26 August 2021
by Karen Le and David Prichard
- Related topics
- Corporate Tax & Regulatory
The ServiceNSW website has just been updated to include the (initial?) rules regarding the extension of JobSaver to businesses with a turnover between $250 million and $1 billion in the tourism, hospitality and recreation industries.
The available funding and eligibility criteria apply to two different tiers (for the year ended 30 June 2020), this includes businesses with:
- Aggregated annual turnover of more than $250 million and up to $500 million; and
- Aggregated annual turnover more than $500 million and up to $1 billion.
A summary of the available funding and eligibility criteria is included below:
|Aggregated annual turnover thresholds|
|Criteria||More than $250 million and up to $500 million||More than $500 million and up to $1 billion|
|Available funding – 40% of weekly payroll at a maximum weekly payment of (refer below)||$300,000 per week
|$500,000 per week
|Australian Business Number (ABN)||Businesses must have an ABN and were operating in NSW on 1 June 2021|
|Decline in turnover due to the Public Health Order (refer below)||50% (presumably or more)||70% (presumably or more)|
|Relevant decline in turnover comparison period||Over a minimum one-month period within the lockdown (commenced 26 June), compared to the same period in 2019 or another agreed period (no current guidance on this)|
|Maintain Employee Headcount||Businesses are required to maintain their employee headcount from the day immediately prior to the month they first experienced the required decline in turnover while they continue to receive JobSaver payments.
Where headcount is not maintained, businesses must notify ServiceNSW.
|Relevant industries (refer below)||ServiceNSW have provided a separate list of ANZSIC industry codes Attachment D in relation to the expansion of the rules.
We note this differs to the existing list of ANZSIC codes in relation to highly impacted industries.
Additional details in relation to evidencing the support of eligibility and assessment is included on the ServiceNSW website JobSaver Attachment D
Our initial observations are below and given recent experience, we are certain that additional questions will come up as businesses begin to apply. We will continue to try and engage ServiceNSW to answer any questions or uncertainty you might have for your business.
- Available funding – the weekly payment cap will be applied at the group level and not an entity level with one entity applying on behalf of the group e.g. the Designated Group Employer or Single Lodger for payroll tax purposes.
- Fortnightly payments – payments will be backdated to the start of the month in which businesses first experienced the required decline in turnover on or after the commencement of JobSaver on 18 July 2021.
- Eligible entities – the decline in turnover and weekly payroll is determined only in relation to eligible entities (i.e. those that fall into the relevant ANZSIC codes) where they are part of a group.
*This appears to conflict with the supporting information requirements which will include other ineligible entities (e.g. consolidated income tax returns). There is currently no guidance on how to treat such scenarios.
- Evidence – whilst an accountant can provide a confirmatory letter, ServiceNSW advise that on submission applicants will be notified of what evidence is required. Clearly, a streamlined process is not envisaged here. We anticipate as a minimum, monthly or periodical profit and loss statements will be required.
- Manual Assessment – applications will be manually assessed by RevenueNSW not ServiceNSW (another step in the streamlined process) which is likely to lead to additional processing and waiting times for resolving issues in relation to particular applications given ServiceNSW is not assessing applications.
Should you have any further questions please reach out to your ESV Engagement Partner – we remain committed to helping our clients navigate this challenging time.