JobKeeper payment amounts received Added 4 November 2021 Aggregated annual turnover means the annual turnover of your business as well as the annual turnover of any business that is connected with you or any business that is your affiliate which can include foreign entities connect ID: 904769
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Slide1
QuestionResponseWhat is “aggregated annual turnover”? Is it Australian turnover only, or does it include foreign turnover? Does turnover include JobKeeper payment amounts received?Added: 4 November 2021“Aggregated annual turnover” means the annual turnover of your business, as well as the annual turnover of any business that is "connected with you" or any business that is your "affiliate" (which can include foreign entities connected with you or foreign entities that are your affiliates), for the year ended 30 June 2020, calculated as at the end of that year (Note: Refer other FAQ where your business has a substituted accounting period). Annual turnover includes all ordinary income you earned in the ordinary course of running your business and includes trading stock sales, fees for services you provided, interest from business bank accounts and amounts received to replace business income. It includes annual turnover earned overseas and annual turnover earned in Australia, but it does not include amounts such as the GST you charge on transactions, amounts borrowed, proceeds from selling business capital assets, certain insurance proceeds and JobKeeper payments. Remember, annual turnover is a reference to gross income, not net profit. Aggregated Annual Turnover means aggregated turnover as defined in section 328-115 of the Income Tax Assessment Act 1997 (Cth). The ATO has further information on calculating aggregated turnover available here.Turnover does not include any amounts received for JobKeeper payments, as the JobKeeper payments were not amounts derived in the ordinary course of carrying on a business by the entity.
Frequently asked questions - COVID-19 BUSINESS GRANTS
Slide2QuestionResponseWhat documentation do I need to provide to demonstrate that the business had an aggregated turnover of $75,000 or more for the 2021 COVID-19 Business Grant and for JobSaver? Added: 12 August 2021 To demonstrate that your business had an aggregated turnover of between $75,000 and $50 million (inclusive) if you are applying for the Business Grant, or between $75,000 and $250 million (inclusive) if you are applying for JobSaver, you must provide a copy of the Australian Income Tax Return of your business for the year ended 30 June 2020.If your business has a substituted accounting period (i.e. does not have an income tax year end of 30 June 2020), please provide a copy of the business’s lodged Australian Income Tax Return for the last financial year ended prior to 30 June 2020.Applicants may choose to redact the Tax File Number disclosed on the copy of the Australian Income Tax Return prior to submission.If the disclosures in the 2020 Australian Income Tax Return of your business do not disclose your aggregated annual turnover (for example your tax return does not include the income of certain connected entities, or you have affiliates whose income you need to aggregate with your own), then you are required to submit other documentation to substantiate that your business meets the aggregated annual turnover test. Such documentation may include:Accountant’s letter;Prior Business Activity Statements;
Income tax declarations - note this may include income tax declarations connected entities and affiliates;
Audited accounts of the group of which the entity is a member;Receipts and invoices from purchases; andNSW payroll tax reconciliation returns.
Frequently asked questions - COVID-19 BUSINESS GRANTS
Slide3QuestionResponseIs aggregated annual turnover the only method of determining turnover?Added: 12 August 2021 The definition of 'Aggregated Annual Turnover' is only used to determine the size of your business as per the turnover threshold requirements. [Refer to FAQ 1 for an explanation of aggregated annual turnover] The requirement regarding aggregated annual turnover is separate to the decline in turnover test.Once you have determined whether your business has aggregated annual turnover of at least $75,000 and no more than $50 million (for the Business Grant) or at least $75,000 and no more than $250 million (for JobSaver), you need to then determine if your business had a decline in turnover of 30% or more during the relevant test periods.Decline in turnover will be measured based on the current Goods and Services Tax ("GST") turnover of your business. Current GST turnover has the meaning given by the Income Tax Assessment Act 1997 (Cth) and the A New Tax System (Goods and Services Tax) Act 1999 (Cth) ("GST Act").ModificationsIn calculating current GST turnover, an applicant would need to make the following adjustments: Section 188-15 of the GST Act applies as if a reference to a month was a reference to the fortnight;Subsection 188-15(1) of the GST Act is to be applied at the end of the fortnight;Subsection 188-15(1) of the GST Act has effect as if the reference in that subsection to “, or are likely to make, during the 12 months ending at the end of that month,” was instead a reference to “during that fortnight”;
Subsection 188-15(2) of the GST Act (about members of GST groups) is to be disregarded;
Each external Territory is treated as forming part of the indirect tax zone (within the meaning of the GST Act).The above-mentioned modifications to the GST Act have the effect to:Enable applicants to calculate GST Turnover for a period of a fortnight;If an applicant is part of a GST group, the applicant will calculate its GST turnover as if it was not part of the GST group. This means that supplies made by one group member to another will be included in GST turnover for the purposes of the decline in turnover test.
Frequently asked questions - COVID-19 BUSINESS GRANTS
Slide4QuestionResponseShould the decline in turnover be calculated on a cash or accrual basis for JobSaver applicants? Added: 12 August 2021 Decline in turnover will be measured based on the Goods and Services Tax ("GST") turnover of your business. As such, if you report GST turnover on your BAS to the ATO on an accrual basis, you should use this method. If you report GST turnover on your BAS to the ATO on a cash basis, you should use this method. To meet the decline in Turnover Test for JobSaver you need to show a decline in turnover over a minimum 2-week consecutive period from 26 June 2021 to 28 August 2021, compared to:the same period in 2019, orthe same period in 2020, orthe 2-week period immediately before the Greater Sydney lockdown commenced (12 June to 25 June 2021). For any business that reports GST on a cash basis, you may not see a decline in turnover until later during the Greater Sydney lockdown period. Once you have demonstrated your eligibility, however, your JobSaver payments will be backdated to 18 July 2021.
Should the decline in turnover be calculated on a cash or accrual basis for the Business Grant?
Added: 12 August 2021 Decline in turnover will be measured based on the Goods and Services Tax ("GST") turnover of your business. As such, if you report GST turnover on your BAS to the ATO on an accrual basis, you should use this method. If you report GST turnover on your BAS to the ATO on a cash basis, you should use this method.To meet the decline in turnover test for the Business Grant, you need to have experienced a decline in turnover of 30% or more due to the Public Health Order over a minimum 2-week consecutive 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 (12 June to 25 June 2021).
This Business Grant covers the first three weeks of the Greater Sydney lockdown. For any business that reports GST on a cash basis, you may not see a decline in turnover until later during the lockdown period. You may, however, be eligible for JobSaver, which covers from 18 July 2021 until the end of the lockdown.
Frequently asked questions - COVID-19 BUSINESS GRANTS
Slide5QuestionResponseShould the decline in turnover be calculated on a cash or accrual basis for the Micro-business Grant?Added: 12 August 2021 To meet the Decline in Turnover Test for the Micro-business Grant, you need to have experienced a decline in turnover of 30% or more due to the Public Health Order over a minimum 2-week consecutive period from 26 June 2021 to 28 August 2021 compared to:the same period in 2019, orthe same period in 2020, orthe 2-week period immediately before the Greater Sydney lockdown commenced (12 June to 25 June 2021)For any business that reports GST on a cash basis, you may not see a decline in turnover until later during the Greater Sydney lockdown period. Once you have demonstrated your eligibility, however, your Micro-business Grant payments will be backdated to 26 June 2021.Is an accountant's letter always required to show decline in turnover for JobSaver?Added: 12 August 2021
A letter from a Practitioner (which can include a qualified accountant, a registered tax agent or a registered BAS agent) confirming the decline in turnover must be lodged if:
Your business is not on the 'highly impacted industries list'. Your business is on the ‘highly impacted industries list’ and you are applying for a weekly
JobSaver
payment of more than $10,000.
If a business has previously submitted a letter from a Practitioner 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.
Non-employing accounting businesses must submit a letter from a Practitioner that is independent from the business.Refer to Attachment A: List of highly impacted industries of the COVID-19 Business Grant Guidelineshttps://www.service.nsw.gov.au/jobsaver-payment-guidelines#attachment-a-list-of-highly-impacted-industries
Frequently asked questions - COVID-19 BUSINESS GRANTS
Slide6QuestionResponseIs an accountant's letter always required to show decline in turnover for the 2021 COVID-19 Business Grant?Added: 12 August 2021 A letter from a Practitioner (which can include a qualified accountant, a registered tax agent or a registered BAS agent) confirming the decline in turnover must be lodged if:Your business is not on the 'highly impacted industries list’.If a business has previously submitted a letter from Practitioner 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.Non-employing accounting businesses (e.g. sole traders) must submit a letter from a Practitioner that is independent from the business.Refer to Attachment A: List of highly impacted industries of the COVID-19 Business Grant Guidelineshttps://www.service.nsw.gov.au/2021-covid-19-business-grant-guidelines#attachment-a-list-of-highly-impacted-industries
Is an accountant's letter always required to show decline in turnover for the Micro-business Grant?
Added: 12 August 2021 A letter from a Practitioner (which can include a qualified accountant, a registered tax agent or a registered BAS agent) confirming the decline in turnover may be lodged to support your application for the Micro-business grant if:
Your business is not on the 'highly impacted industries list'.
A letter from a Practitioner is one form of documentation that can be used to support your application.
Refer to Attachment B: List of highly impacted industries of the COVID-19 Business Grant Guidelines
https://www.service.nsw.gov.au/2021-covid-19-micro-business-grant-guidelines#attachment-b-highly-impacted-industries Service NSW to review Service NSW website and ensure correct link is included – in all other guidelines the Highly impacted Industries list is Attachment A however per Service NSW website 12/08/2021 is attachment B.
Frequently asked questions - COVID-19 BUSINESS GRANTS
Slide7QuestionResponseBusinesses report on a monthly or quarterly basis, how can the decline in turnover be calculated over a two-week period? Added: 12 August 2021 The GST definition of current GST turnover will be applied when assessing whether an applicant experienced the required decline in turnover.You will need to apportion your GST turnover reported in your monthly or quarterly Business Activity Statements so that you only include your GST turnover related to a minimum 2 week consecutive period between 26 June 2021 and 17 July 2021 for the Business Grant and 26 June 2021 and 28 August 2021 for the Micro-Business Grant and JobSaver and the corresponding period:The same period in 2019; or The same period in 2020; orthe 2-week period immediately before the Greater Sydney lockdown commenced (12 June to 25 June 2021).If an applicant is part of a GST group, the applicant will calculate its GST turnover as if it was not part of the GST group. This means that supplies made by one group member to another will be included in GST turnover for the purposes of the decline in turnover testAlternatively, you may elect to identify the current GST turnover that actually occurred during a minimum two-week period within the specified calculation period, using the same basis on which you prepare your BAS. You should compare this to the current GST turnover that actually occurred in the same minimum two-week period that you have selected as the comparison period.
The guideline eligibility states that a minimum two-week period of decline be shown, can a business use the full three-week period to show the decline?
Added: 12 August 2021
Yes, a business will be able to use the full three-week period to show the decline in turnover.
Frequently asked questions - COVID-19 BUSINESS GRANTS
Slide8QuestionResponseCan an accounting firm provide their own accountant’s letter? Added: 12 August 2021 An employing accounting firm can provide a letter covering their own business. A sole trader accountant cannot verify their own decline in turnover. They will need to obtain a letter from an Independent Practitioner which can include a qualified accountant, registered tax agent or registered BAS agent. Is a business eligible for the grants where they are not paying wages (for example a director drawing down on loans)? Added: 12 August 2021 Non-employing businesses are eligible to apply for the grants if all the eligibility requirements are met.
However, non-employing businesses are not eligible to apply if persons associated with the business, and who derive income from it, have applied for, or are receiving, the Commonwealth COVID-19 Disaster Payment.
How does JobSaver affect whether a business may be able to receive the 2021 COVID-19 Business Grant?
Added: 12 August 2021
Businesses can apply for, and receive, both
JobSaver
and the 2021 COVID-19 Business Grant. JobSaver commences on 18 July 2021, whereas the Grant is designed to support businesses from 26 June 2021 to 17 July 2021.
Frequently asked questions - COVID-19 BUSINESS GRANTS
Slide9QuestionResponseCan a non-employing business receive the Commonwealth COVID-19 Disaster Payment and the 2021 COVID-19 Business Grant? Added: 12 August 2021 Non-employing businesses (which includes non-employing sole traders) are not eligible to apply if persons associated with the business, and who derive income from it, have applied for, or are receiving, the Commonwealth COVID-19 Disaster Payment. Non-employing business means a business owner who does not have employees. This may include a range of entity types, such as non-employing sole traders or any other businesses without employees. If a Business Grant or Micro-business recipient has grant funds left over (in the case of the Business Grant, after covering all eligible incurred between 1 June 2021 to 17 July 2021, and in the case of the Micro-business grant, after having covered all eligible expenses), are they required to repay the unspent amount? Added: 12 August 2021 No. For the Business Grant, if during the period 1 June 2021 and 17 July 2021, a recipient incurs eligible expenses less than the grant monies received, they may retain the monies on the condition that they are spent on eligible expenses that arise in the future and retain evidence of the same. For the Micro-business, surplus funds may be retained and spent on future eligible expenses provided evidence is retained of the same.
Frequently asked questions - COVID-19 BUSINESS GRANTS
Slide10QuestionResponseWhat should be included in the accountant's letter noting that a template has been provided on the SNSW website? Added: 12 August 2021 The letter from a Practitioner should follow the template provided by Service NSW. Accordingly, the letter should include the following information for JobSaver and the Micro-business Grant:Applicant’s business name, Applicant’s business address, Applicant’s Australian Business Number (ABN);Turnover for a minimum 14-day consecutive period between 26 June and 28 August 2021 inclusive;Turnover for a minimum 14-day consecutive period between eitherthe 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).
Decline in turnover percentage;
Details of the Practitioner (including name, position title, contact telephone number, email address, professional registration details and registration number).Accordingly, the letter should include the following information for Business grant:Applicant’s business name, Applicant’s business address, Applicant’s Australian Business Number (ABN);Turnover for a minimum 14-day consecutive period between 26 June and 17 July 2021;Turnover for a minimum 14-day consecutive period between either
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).
Decline in turnover percentage;Details of the Practitioner (including name, position title, contact telephone number, email address, professional registration details and registration number).Note: the accountants’ template letter has been updated on the Service NSW website following the expansion of the Grant program to allow additional comparative periods.
Frequently asked questions - COVID-19 BUSINESS GRANTS
Slide11QuestionResponseIs the Accountant letter able to be edited for the comparison period dates to match the alternate dates as selected by the customer? Added: 12 August 2021 The wording in the letter from the Practitioner should be updated to refer to the exact test period being relied upon.It is noted that the decline in turnover test requires testing over a minimum 2-week period between 26 June 2021 and 17 July 2021 for the Business grant and between 26 June 2021 and 28 August 2021 for the Micro-business grant and JobSaver compared to:the same comparative period in 2019 or the same comparative period in 2020; or the 2-week period immediately before the Greater Sydney lockdown commenced (12 June to 25 June 2021). If a business was not operating for the full year to 30 June 2019 or 30 June 2020, how can it demonstrate the minimum decline in turnover for the Business Grant? Added: 12 August 2021
With respect to the Business Grant, a business will need to have experienced a decline in turnover of 30% or more over a minimum two-week period from 26 June 2021 to 17 July 2021 compared to one of the following comparable periods depending on when the business commenced operations:
The same period in 2020; orThe two-week period immediately before the lockdown commenced (i.e. 12 June 2021 to 25 June 2021).
If a business was not operating for the full year to 30 June 2019 or 30 June 2020, how can it demonstrate the minimum decline in turnover for
JobSaver
or the Micro-Business Grant?
Added: 12 August 2021
With respect to
JobSaver or the Micro-business Grant, a business will need to have experienced a decline in turnover of 30% or more over a minimum two-week period from 26 June 2021 to 28 August 2021 compared to one of the following comparable periods depending on when the business commenced operations:The same period in 2020; or
The two-week period immediately before the lockdown commenced (i.e. 11 June 2021 to 25 June 2021).
Frequently asked questions - COVID-19 BUSINESS GRANTS
Slide12QuestionResponseThe accountant template letter for the Business grant refers to turnover for a minimum 14-day consecutive period between 26 June and 26 July 2021 inclusive, however the two-week period has changed to 26 June to 17 July. Added: 20 August 2021 The form has now been updated on the website. The current test period for the Business grant is from 26 June 2021 to 17 July 2021. The JobSaver scheme provides support to businesses from 18 July 2021.What documentation may be required to show no change in staffing levels to support headcount declarations? Added: 20 August 2021 A business or not-for-profit organisation must declare their employee headcount and declare they will maintain their employee headcount. In order to make this declaration a business should have sufficient evidence and records to support this declaration.
Records may include, but are not limited to:
Payroll reports;Single touch payroll data; orRosters and timesheets
If staff are on paid leave is the business eligible for
JobSaver
?
Added: 20 August 2021 Yes, the business will still be eligible for JobSaver if all the relevant eligibility criteria has been met. If a staff member is on paid leave, they will be included as part of the Employee Headcount declaration if the staff member was employed in New South Wales and is a permanent (full-or part time) or casual staff member who has been employed for more than 12 months by the business or not-for-profit organisation as at 13 July 2021
Frequently asked questions - COVID-19 BUSINESS GRANTS
Slide13QuestionResponseIf an individual remains in the headcount but has hours reduced or stood down, and the business receives the JobSaver program and / or the Business grant, does that prevent the individual receiving the Disaster payments? Added: 20 August 2021 No. Employees can still receive Commonwealth COVID-19 Disaster Payments if their employer is receiving JobSaver. However, 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.Frequently asked questions - COVID-19 BUSINESS GRANTS
Slide14QuestionResponseFor JobSaver purposes and the requirement to “maintain employee headcount”: What happens if staffing levels are adjusted due to an employee resigning or even death? What about redundancies? What about fair terminations on the basis of misconduct? What about increased headcount? Added: 4 November 2021 1. Maintaining headcount where there are employee resignations or deaths An employer will “Maintain their employee headcount” if the employer does not take active steps to end the employment relationship with their employees. Employees who have been stood down under the Fair Work Act 2009 (Cth
) 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 or even in the case of death.
Upon successful application, businesses will receive automatic fortnightly payments. Businesses must notify Service NSW if they are not maintaining the number of employees while the business is receiving JobSaver payments. 2. Redundancies Any reduction in headcount due to redundancies will be considered a failure by the employer to “Maintain their employee headcount”. Compliance activities including reviews or investigations may be conducted where an employer is identified as having reduced headcount.
3. Termination based on misconduct
Where an employer fairly terminates an employee for misconduct, the employer will be treated as having maintained their employee headcount. Eligibility will
not
be impacted on this basis alone. 4. Increased headcount For clarity, an employer will still be considered to “Maintain their employee headcount” if they increase their headcount by hiring additional employees.
Frequently asked questions - COVID-19 BUSINESS GRANTS
Slide15QuestionResponseFor JobSaver purposes, will the business be considered to have maintained its workforce if staff hours are reduced, or employees are stood down during the lockdown? Added: 20 August 2021 An employer will “Maintain their employee headcount” if the employer does not take active steps to end the employment relationship with their employees. Employees who have been stood down under the Fair Work Act 2009 (Cth) or take leave without pay are considered employees for the purpose of headcount.Is there a requirement that the workload of staff be reduced to 40% while a business is receiving JobSaver payments? Added: 20 August 2021
No. There is no requirement for staff workload or hours to reduce while a business is receiving
JobSaver.
Frequently asked questions - COVID-19 BUSINESS GRANTS
Slide16QuestionResponseIs a letter from an accountant required, and in what circumstances and for what grants (now that multiple support payments are triggered by a 30 per cent decline in turnover)? Added: 20 August 2021 Business Grant: If you are applying for the Business Grant, a letter from a qualified accountant, a registered tax agent or a registered BAS agent confirming the decline in turnover of the business must be lodged if your business is not on the 'highly impacted industries list'. If you are applying for the Business Grant and your Business is on the “highly impacted industries list”, you are not required to submit a letter from a qualified accountant confirming the decline in turnover of your business, but will be required to provide details of your qualified accountant, registered tax agent or registered BAS agent for compliance checking.JobSaver:If you are applying for JobSaver, a letter from a qualified accountant, a registered tax agent or a registered BAS agent confirming the decline in turnover of the business must be lodged if your business is not on the 'highly impacted industries list' or your business is on the “highly impacted list” and you are applying for a weekly JobSaver payment of more than $10,000. If you are applying for JobSaver and your Business is on the “highly impacted industries list”, you are not required to submit a letter from a qualified accountant confirming the decline in turnover of your business, but will be required to provide details of your qualified accountant, registered tax agent or registered BAS agent for compliance checking.
Continues on next page.
Frequently asked questions - COVID-19 BUSINESS GRANTS
Slide17QuestionResponse… Continued Is a letter from an accountant required, and in what circumstances and for what grants (now that multiple support payments are triggered by a 30 per cent decline in turnover)? Added: 20 August 2021 … Continued Micro-Business Grant:If you are applying for the Micro-business Grant and you are not on the ‘highly impacted industries list’, then you are required to submit evidence confirming the decline in turnover of the business. This evidence can be in the form of a: letter from a qualified accountant, registered tax agent or registered BAS agent; orbusiness bank account statement (separate from any personal accounts); orprofit and loss statements from an accounting software and an annotated personal bank statement.
If you are applying for the Micro-business grant and your Business is on the “highly impacted industries list”, you are not required to submit a letter from a qualified accountant confirming the decline in turnover of your business.
Additionally, all businesses applying for the Micro-Business Grant (regardless of whether they are on the highly impacted industries list or not) must also submit evidence that the business had an aggregated annual turnover of more than $30,000 and less than $75,000 for the year ended 30 June 2020. This can be in a form of a: letter from a qualified accountant, registered tax agent or registered BAS agent; or business activity statements (BAS); or business bank account statement (separate from any personal accounts); or Australian income tax return (from which businesses can choose to redact their tax file number); or
A profit and loss statement from an accounting software for a minimum 3-month period for the 2019-20 financial year together with one of the following documents:
an annotated personal bank statement for the same minimum 3-month period; or
a 2019-20 personal income return.
Refer to Attachment A: List of highly impacted industries of the COVID-19 Business Grant Guidelines: https://www.service.nsw.gov.au/2021-covid-19-business-grant-guidelines#attachment-a-list-of-highly-impacted-industries
Frequently asked questions - COVID-19 BUSINESS GRANTS
Slide18QuestionResponseWhat forms of evidence will be accepted for Micro business grant applicant? Added: 20 August 2021 Eligible businesses that are not on the highly impacted industries lists applying for the Micro-Business Grant are required to submit evidence that the business experienced a decline in turnover of 30% or more due to the Public Health Order over a minimum 2-week period within the Greater Sydney lockdown compared to:the same period in 2019; orthe same period in 2020; orthe 2-week period immediately before the lockdown commenced (12-25 June 2021). This evidence can be in the form of a: letter from a qualified accountant, registered tax agent or registered BAS agent; orbusiness bank account statement (separate from any personal accounts); orprofit and loss statements from an accounting software and an annotated personal bank statement. Additionally, all businesses applying for the Micro-Business Grant (regardless of whether they are on the highly impacted industries list or not) must also submit evidence that the business had an aggregated annual turnover of more than $30,000 and less than $75,000 for the year ended 30 June 2020. This can be in a form of a:
letter from a qualified accountant, registered tax agent or registered BAS agent; or
business activity statement (BAS); or business bank account statement (separate from any personal accounts); or Australian income tax return (from which businesses can choose to redact their tax file number); orA profit and loss statement from an accounting software for a minimum 3-month period for the 2019-20 financial year together with one of the following documents:
an annotated personal bank statement for the same minimum 3-month period; or
a 2019-20 personal income return.
Frequently asked questions - COVID-19 BUSINESS GRANTS
Slide19QuestionResponseIs aggregated annual turnover the only method of determining turnover where the business is new? Added: 20 August 2021 There are several circumstances where a business may not meet the eligibility criteria and supporting evidence requirements but may still be eligible for the Grant. These circumstances include: Businesses not operating for the full year to 30 June 2020 (e.g. new businesses)Businesses affected by drought, bushfires or other natural disastersBusiness acquisition, disposal or business restructure that has impacted the business’ turnoverA sole trader or small partnership impacted by sickness, injury or leave.Businesses that are applying for either the Business Grant, Micro-business Grant or JobSaver that are unable to demonstrate turnover for a full year, a shorter period can be accepted provided that shorter period is representative of the “normal operating environment” of the business. The turnover for this shorter period will be annualised to get an equivalent annual turnover figure for the business.Businesses should generally use a minimum 3-month period to demonstrate turnover, and should provide:
a Business Activity Statement (BAS) for at least one quarter (or 3-monthly BAS), or
an Australian Tax Return annotated to show when the business commenced during the financial year.Where a business does not have the evidence outlined above (for example, because the business started between 1 January and 1 June 2021 or is a micro-business that does not submit a BAS), the following may be provided as evidence of annual turnover:letter from a qualified accountant, registered tax agent or registered BAS agent; orbusiness bank account statement for a minimum 3-month period (separate from any personal accounts), or the period for which the business has been operating if less than 3 months, or(for micro-business grant applicants only) a profit and loss statement from an accounting software for a minimum 3-month period, or the period for which the business has been operating if less than 3 months, and one of the following documents
an annotated personal bank statement for the same period, or
a personal income tax return annotated to show when the business commenced during the financial year.
Frequently asked questions - COVID-19 BUSINESS GRANTS
Slide20QuestionResponseHow will Live music grant amounts be determined and applied for? Added: 20 August 2021 Please refer to the NSW Performing Arts COVID Support Package Guidelines. https://mk0createnswn7cpj5ax.kinstacdn.com/wp-content/uploads/2021/07/Guidelines_NSW-Performing-Arts-COVID-Support-Package.pdf Can businesses use the payment of annual leave in lump sums to capitalise on the JobSaver support? Added: 20 August 2021
No. Organisations should ensure that their payroll practices are consistent with normal business practice and have not been manipulated for the sole purpose of receiving a higher grant or support amount.
Payroll amounts are those reported in W1 of the Business Activity Statement (BAS) of a business. This includes such things as leave loading. Weekly Payroll should generally be determined by referring to the most recent BAS provided to the Australian Taxation Office (ATO) before 26 June 2021 for the 2020-21 financial year adjusted to exclude non-NSW employees and prorated over a 7-day period. An adjustment must also be made to exclude any amounts from W1 that have been withheld on behalf of contractors under voluntary agreements. Businesses that do not submit a BAS or have no W1 amount should use the ATO definition of W1 (adjusted as outlined above) to calculate their Weekly payroll amount.
Frequently asked questions - COVID-19 BUSINESS GRANTS
Slide21QuestionResponseAre businesses required to use the fortnight with the lowest turnover in the period between 26 June and 17 July 2021 in calculating their decline in turnover when applying for the Business grant? Added: 20 August 2021 No, businesses are not required to pick the two-week period with the lowest turnover for the purposes of the decline in turnover test. The test periods are outlined below depending on whether you are applying for JobSaver, the Business Grant or the Micro-Business Grant.JobSaver and the Micro-Business Grant:To show the required decline in turnover for JobSaver, businesses must choose any minimum two-week period between the 26 June 2021 to 28 August 2021 and compare it to:the same period in 2019; orthe same period in 2020; orthe two-week period immediately before the lockdown commenced (i.e. 12 June 2021 to 25 June 2021).Business Grant:
To show the required decline in turnover for the Business Grant, businesses must choose any minimum two-week period between the 26 June 2021 to 17 July 2021 and compare it to:
the same period in 2019; orthe same period in 2020; orthe two-week period immediately before the lockdown commenced (i.e. 12 June 2021 to 25 June 2021).Businesses can choose any 14-day (minimum) period between 26 June 2021 and 17 July 2021. Businesses and not-for-profit organisations on the NSW border with Victoria impacted by the stay-at-home orders that began on 27 May 2021 may use a different comparison period to demonstrate a decline in turnover. These businesses must demonstrate a decline in turnover over a minimum 14 day period from 27 May 2021 to 17 July 2021.
The selected 2021 period must then be compared to the same period (i.e. the same dates) in 2019. For example, if the period selected in 2021 is 17 June to 10 July 2021, this must be compared to the turnover for the period 17 June to 10 July 2019.
Frequently asked questions - COVID-19 BUSINESS GRANTS
Slide22QuestionResponseWhat is the definition of payroll to be used for JobSaver? Added: 20 August 2021 Payroll means the Australian Tax Office (ATO) concept of total salary, wages and other payments, as declared at W1 in a Business Activity Statement (BAS) with respect to the payments made for employees that usually worked, or were based, in New South Wales. Weekly Payroll should generally be determined by referring to the calculations underlying the most recent Business Activity Statement (BAS) provided to the Australian Taxation Office (ATO) prior to 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. Payments subject to withholding tax in W1 includes allowances, leave loading, director fees and termination payments but does not include payments such as superannuation contributions, amount subject to salary sacrifice, interest or dividends. For the purposes of calculating Weekly Payroll, businesses should deduct amounts from W1 that have been withheld on behalf of contractors under voluntary agreements. For businesses that operate in other States and Territories, they should calculate the W1 amount for employees who usually work or were based in New South Wales during the relevant BAS period (i.e. to remove disclosures relating to non-New South Wales employees), as well as then deducting amounts voluntarily withheld on behalf of contractors. 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 the month of April or May 2021. That amount should be divided by the number of calendar days in the month and multiplied by 7. This will give the Weekly Payroll amount.
What is the definition of an employee for
JobSaver purposes? Does it include directors? Added: 20 August 2021 Employee has the same meaning as its ordinary or common law meaning. Where it is not known whether there is an employee/employer relationship, businesses and not-for-profit (NFP) organisations should consider the guidance provided by the ATO using the Employee/contractor decision tool -
Employee/contractor decision tool | Australian Taxation Office (ato.gov.au).
Frequently asked questions - COVID-19 BUSINESS GRANTS
Slide23QuestionResponseWhere a non-employing business is applying for the Micro-Business Grant, how will it be determined whether the business is the primary income source for the associated person? Added: 20 August 2021 For non-employing businesses, to be eligible the business receiving payments must be the primary income source for the business owner. The requirement is to declare that the business is the primary income source. Individuals with more than one non-employing business may only claim payments for one business.Your primary income source is the source you derive most of your positive cashflows from. How do advisors/agents assist their clients with respect to the application process for the grants and JobSaver? Added: 20 August 2021
Your accountant or tax agent can apply on behalf of your business. They will need to provide a letter of authority from you to show that they are authorised to act on behalf of your business if they are not listed as an associate on the Australian Business Register.
Advisors/agents may assist their clients with the following:determining their aggregated turnover;determining their decline in turnover;calculating weekly payroll;
calculating headcount;
collation of required evidence; and
if a qualified accountant, registered tax agent or registered BAS agent – provision of a letter advising the decline in turnover.
The application for the grants or JobSaver is an online process through Service NSW which businesses are to complete.
Frequently asked questions - COVID-19 BUSINESS GRANTS
Slide24QuestionResponseAre factsheets available that provide an indicative timeline to assist small businesses in knowing when they can apply for assistance? Added: 20 August 2021 Service NSW provides guidelines on their website for all COVID-19 support grants. The website is updated regularly with guidance on how to apply and clarification of the eligibility criteria. What guidance is available to ensure that business advisors (such as accountants and bookkeepers) are correctly assisting their clients with respect to applications for the COVID-19 support? Added: 20 August 2021 Service NSW provides guidelines on their website for all COVID-19 support grants. The website is updated regularly with further guidance on how to apply and clarification of the eligibility criteria. In addition to the eligibility criteria, definitions and terms and conditions are provided to assist in the application process. Where uncertainty remains, please contact Service NSW directly.
What is meant by primary income source from a non-employing business?
Added: 7 October 2021
A non-employing business will be considered to be the primary income source of an associated person where more than 50 per cent of the total income of the associated person for the year ended 30 June 2020 comes from that non-employing business.
Frequently asked questions - COVID-19 BUSINESS GRANTS
Slide25QuestionResponseThe business has a separate employing entity and one or more trade entities. Each entity has a different ABN. The employing entity has the principal function of supplying labour to the group, but the trade entity records all of the revenue which has had the requisite decline in turnover. How does the business demonstrate the minimum decline in GST turnover for JobSaver or the Business Grant? Added: 4 November 2021For the Business Grant and JobSaver, where there is a “group employing entity” that provides the labour for related trading or business entities who are not employers, each business entity of the group should use its own GST turnovers for the period within the lockdown and the relevant comparison period to calculate the decline in turnover. The relevant payroll for JobSaver purposes will then be determined as the amount of the Payroll expense incurred by the “group employing entity” in supplying labour to that business or trading entity. In this regard, an entity will be a “group employing entity” with a principal function of supplying employee labour to other members of the group where:For the whole of the period within the lockdown that is used for the purpose of assessing decline in turnover, and for the whole of the relevant comparison period:The employer entity is a member of a: consolidated group or consolidatable group as defined by the Income Tax Assessment Act 1997 (Cth); or GST group as defined by the A New Tax System (Goods and Services Tax) Act 1999 (Cth); andThe employer entity’s principal activity is supplying other members of the group with services (
employee labour services
) consisting of the performance of work by individuals that the employer entity employs.For the period within the lockdown:the employing entity supplies employee labour services to one or more members of the group that have as their principal activity the making of supplies to entities other than members of that group; andthe employing entity does not supply employee labour services to entities that are not members of the group (disregarding supplies that are merely incidental to the principal activity of the employing entity).
Frequently asked questions - COVID-19 BUSINESS GRANTS
Slide26QuestionResponseHow do not-for-profit (NFP) organisations (including ACNC-registered charities) determine their decline in GST turnover for the Business Grant, JobSaver or the Micro-Business Grant? In particular, are there any modifications to turnover in respect of Government grants and donations as per JobKeeper? Added: 4 November 2021Under the Business Grant, JobSaver and Micro-Business Grant:Charities registered with the Australian Charities and Not-for-profits Commission (ACNC) (“registered charities”), other than schools or universities, should include gifts (e.g. donations) and government grants when calculating decline in turnover.For not-for-profit organisations that are not registered charities, gifts should be excluded and government grants included when calculating decline in turnover.For registered charities eligible under Attachment E of the JobSaver guidelines, when calculating aggregated annual turnover or decline in turnover, the ‘modifications – eligible registered charities’ outlined in the definitions section of the Attachment E guidelines apply. This means that registered charities should include gifts (e.g. donations) and government grants when calculating aggregated annual turnover or decline in turnover.
Frequently asked questions - COVID-19 BUSINESS GRANTS
Slide27QuestionResponseHow do I evidence my Payroll amount if my business reports Wages monthly and GST quarterly? Not all Wages will be reported in the BAS. Added: 4 November 2021Payroll means the Australian Tax Office (ATO) concept of total salary, wages and other payments, as declared at W1 in a Business Activity Statement (BAS) with respect to the payments made for employees that usually worked, or were based, in New South Wales. Weekly Payroll should generally be determined by referring to the calculations underlying the most recent Business Activity Statement (BAS) provided to the Australian Taxation Office (ATO) prior to 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. Businesses that submit a monthly Instalment Activity Statement (“IAS”) and report Wages outside of their quarterly BAS (in which they may report some Wages and GST obligations) can use the appropriate corresponding figures and data which would be reported in the relevant IASs. Payroll will be calculated as the W1 amount for a month (being April or May 2021) divided by the number of days in that month and then multiplied by 7. Sufficient evidence of Payroll will be “single-touch payroll” (“STP”) reports or other Payroll documentation. Where no BAS and no STP report can be provided, further guidance on any specific circumstances, evidence required, or other related issues, can be obtained by contacting Service NSW directly.
Frequently asked questions - COVID-19 BUSINESS GRANTS
Slide28QuestionResponseWhat if my business has an aggregated turnover of more than $250 million? Added: 4 November 2021The basic eligibility criteria for the JobSaver extension are that the business:had an aggregated annual turnover of more than $250 million and up to $1 billion for the year ended 30 June 2020;they experienced a decline in turnover due to the Public Health Order of:50 per cent for businesses with aggregated annual turnover of more than $250 million and up to $500 million; or70 per cent for businesses with aggregated annual turnover of more than $500 million and up to $1 billion;can demonstrate the relevant decline in turnover over a minimum one month period within the lockdown (commenced 26 June), compared to the same period in 2019 or another agreed period. Eligible businesses must operate under one of a specific list of eligible industries represented by specific “ANZSIC” codes. More details are provided in the Attachment D to the JobSaver Guidelines. What if my business is conducted in an entity that has multiple “associated persons” whose “primary income source” is drawings or payments from that business entity?
Added: 4 November 2021
Eligible businesses and not-for-profit organisations that do not have any employees are eligible to receive $1,000 per week under the JobSaver program (tapering to $750 per week from 10 October and $375 per week from 24 October (or 31 October for regional NSW LGAs)).
The JobSaver payment is for the business, not the associated individual(s). The business is eligible for one payment per week under this measure where one or more “associated individuals” derive their primary source of income from the business.
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 for the same period.
Frequently asked questions - COVID-19 BUSINESS GRANTS
Slide29QuestionResponseConsolidated Groups and GST Groups: Can each member of a consolidated group or GST group apply for the Business Grants, JobSaver and/or Micro-Grants? How does a member of a consolidated group provide evidence to demonstrate that the business had the requisite aggregated turnover if it is not required to lodge an Australian income tax return? Added: 4 November 2021Eligibility generally for group members Unless the business is a non-employing business, there is no restriction on any entity being eligible for any of the JobSaver, Business Grant or Micro-Business Grant support programs based purely on its status as a member of a tax consolidated group (or GST group). Each entity (unless a specific rule applies to that entity type) should apply the rules separately to determine its eligibility. The status of the entity as a member of a tax consolidated group or GST group will affect how the rules and eligibility criteria are applied (for example, with respect to turnover calculations – see below), but do not restrict the eligibility of the entity on the basis solely of its group membership. Aggregated Turnover The member of a tax consolidated group (TCG) may provide a copy of the Australian Income Tax Return of that TCG if this reflects the group of entities that are connected with or are affiliates of the applicant business. However, if the Aggregated Annual Turnover requirement needs to include other entities, then other documentation may be submitted to demonstrate the applicant business meets the Aggregated Annual turnover test such as:
Accountant’s letter;
Prior Business Activity Statements;Income tax declarations – note this may include income tax declarations of connected entities and affiliates;Audited accounts of the group of which the entity is a member;Receipts and invoices from purchases; and
NSW payroll tax reconciliation returns.
Frequently asked questions - COVID-19 BUSINESS GRANTS
Slide30QuestionResponseConsolidated Groups and GST Groups continued: How does a member of a GST Group demonstrate a sufficient decline in turnover? How does a member of a GST Group calculate decline in turnover?Added: 4 November 2021Decline in TurnoverUnder the definition of “Decline in turnover”, an entity satisfies the decline in turnover test for a fortnight if the entity’s current GST turnover for a relevant period (a fortnight or month, as the case requires) falls by at least the required percentage (30, 50 or 70 per cent, as the case requires) compared to the relevant comparison period.“Current GST turnover” has the meaning given by the Income Tax Assessment Act 1997 (Cth) and the A New Tax System (Goods and Services Tax) Act 1999 (Cth) (the GST Act), and will usually be determined by reference to the entire GST group. However, the rules and guidelines provide that subsection 188-15(2) of the GST Act (about members of GST groups) is to be disregarded, so each entity may determine its Current GST Turnover and Decline in turnover on an entity basis not a group basis. A business entity will need to be able to determine its current GST turnover as a standalone entity and would therefore need to be able to calculate the relevant amounts of GST turnover based on the appropriate GST reporting method. Evidence required to support the assertion that the business has suffered the requisite decline in turnover will include one or more of the following:a letter from a qualified accountant, who is familiar with the workings of the business attesting to the decline in turnover, andmonthly Balance Sheets and Profit and Loss Statements, or workpapers supporting GST turnover for eligible entities within a group.
GST Turnover
GST Turnover may be calculated on a cash or accruals basis. A business should use the same method for both its current and comparison period. Where an entity is a micro-business and does not have a method of calculating its GST Turnover (cash or accruals) because it does not lodge a BAS, it should use the same method as its income tax return. Where an entity: is a member of a TCG and therefore does not lodge its own income tax return; and does not lodge its own BAS.The entity should use the same method of calculating its GST Turnover (cash or accruals) as the TCG of which it is a member reports income.
Where an entity is a member of a GST group and does not lodge a separate BAS, it should use the same method as its GST group.
Tracking: Drafted on the basis of the revised Guidelines for
JobSaver
, Business Grant and Micro-Business Grant as at 24 August 2021. Frequently asked questions - COVID-19 BUSINESS GRANTS
Slide31QuestionResponseWhat is meant by primary income source from a non-employing businesses? Added: 4 November 2021A non-employing business will be considered to be the primary income source of an associated person where more than 50 per cent of the total income of the associated person for the year ended 30 June 2020 comes from that non-employing business. Are JobKeeper, JobSaver and NSW Government COVID-19 business grant payments included in aggregated annual turnover and decline in turnover calculations? Added: 4 November 2021
JobKeeper
and JobSaver payments and NSW Government COVID-19 business grants are not included when calculating an entity’s aggregated annual turnover and decline in turnover.
Frequently asked questions - COVID-19 BUSINESS GRANTS