JobKeeper Extension (Updated on 06/01/2021)

• JobKeeper will be extended to 28 March 2021 for those employees who qualify
• For churches their GST turnover will have to have dropped 15% comparing the period 1 July 2020 to 30 September 2020 with 1 July 2019 to 30 September 2019. This Turnover test will have to be done again for the 1 October 2020 to 31 December 2020 comparison period
• Existing employees (including if they were stood down or rehired) who have opted in previously do not have to do anything
• New employees can opt in if they were a full-time, part-time or fixed-term employee at 1 July 2020 (previously 1 March 2020). Long-term casual employee (employed on a regular and systematic basis for at least 12 months) as at 1 July 2020 (previously 1 March 2020) and not a permanent employee of any other employer can opt in
• From 4 January 2021 to 28 March 2021, the JobKeeper Payment rates will be:
  • $1,000 per fortnight for all eligible employees who were working in the business or not-for-profit for 20 hours or more a week on average in the four weeks of pay periods before either 1 March 2020 or 1 July 2020, and for business participants who were actively engaged in the business for 20 hours or more per week on average; and
  • $650 per fortnight for other eligible employees and business participants.
  • the hours worked or hours actively engaged would need to be 80 hours during the reference periods as follows:

• • Payroll software will have to be updated to reflect the new amounts where a top up has been applied

Recommendations

• Keep documentation of how you calculated the drop in GST Turnover. The ATO have mentioned they will be doing checks. Review your data for past and future JobKeeper eligibility
• • • Ensure Church Governance understands the calculations and decisions made regarding JobKeeper

JobKeeper Extension – Updated on 25/09/2020

JobKeeper 2.0

What we know

• JobKeeper will be extended to 28 March 2021 for those employees who qualify
• For churches their GST turnover will have to have dropped 15% comparing the period 1 July 2020 to 30 September 2020 with 1 July 2019 to 30 September 2019
• Existing employees (including if they were stood down or rehired) who have opted in previously do not have to do anything
• New employees can opt in if they were a full-time, part-time or fixed-term employee at 1 July 2020 (previously 1 March 2020). Long-term casual employee (employed on a regular and systematic basis for at least 12 months) as at 1 July 2020 (previously 1 March 2020) and not a permanent employee of any other employer can opt in
• From 28 September 2020 to 3 January 2021, the JobKeeper Payment rates will be:
  • $1,200 per fortnight for all eligible employees who were working in the business or not-for-profit for 20 hours or more a week on average in the four weeks of pay periods before either 1 March 2020 or 1 July 2020, and for eligible business participants who were actively engaged in the business for 20 hours or more per week on average; and
  • $750 per fortnight for other eligible employees and business participants.
• From 4 January 2021 to 28 March 2021, the JobKeeper Payment rates will be:
  • $1,000 per fortnight for all eligible employees who were working in the business or not-for-profit for 20 hours or more a week on average in the four weeks of pay periods before either 1 March 2020 or 1 July 2020, and for business participants who were actively engaged in the business for 20 hours or more per week on average; and
  • $650 per fortnight for other eligible employees and business participants.
  • the hours worked or hours actively engaged would need to be 80 hours during the reference periods as follows:

• Payroll software will have to be updated to reflect the new amounts where a top up has been applied

NOTE: The ATO have not released details of the actual procedure yet. Full details of what is know can be found at here and here

What we don’t know

• The method to advise the ATO. This will most likely be via the Business Portal
• The due date for the September quarter comparisons. This will most likely be the September BAS due date (October 28)
• What to do with our payroll software. If eligible do we opt in for the next quarter/s, or do we opt out if ineligible

Recommendations

• Keep documentation of how you calculated the drop in GST Turnover. The ATO have mentioned they will be doing checks. Review your data for past and future JobKeeper eligibility
• Ensure Church Governance understands the calculations and decisions made regarding JobKeeper

Third Round of Business Support Fund Grants

The Victorian Government has announced a third round of the Business Support Fund to provide direct financial support to businesses impacted by restrictions in Victoria. This will entitle most BUV churches to apply for $10,000. For details, click here.

Business Adaption

The State Government also announced funding for businesses to adapt to COVID conditions, like outside dining. This most likely will not be of help to most churches, but just in case here is the information link:

Hubdoc and Xero

In March Xero Hubdoc was added to Xero accounting plan for free. Contact Andrew North if you want help setting it up or training. For a 1 minute video see here. 

Additional Business Support – Updated on 05/08/2020

Business Support Fund
To support businesses impacted by these restrictions, one-off grants will be made available to eligible businesses under the Business Support Fund – Expansion program:

$10,000 for employing businesses in metropolitan Melbourne and Mitchell Shire in recognition of spending longer under restrictions

$5,000 for employing businesses in regional local government areas (except Mitchell Shire)

Businesses which have already received a Business Support Fund – Expansion grant, or have applied for one, will not need to re-apply. Successful applicants will automatically receive this additional allocation. Applications for the program will be extended until 14 September 2020.

(Source: Business Victoria)

Let’s Stay Connected Fund
The Victorian Government is helping communities to stay connected during the coronavirus (COVID-19) pandemic and beyond with the Let’s Stay Connected Fund. The fund provides grants between $5,000 and $200,000 to support community-led initiatives.

Applications will be considered from Victorian-based incorporated community organisations, LGA’s, incorporated not-for-profits and industry groups. Individuals and unincorporated associations are not eligible to apply. All applications must provide a current ABN number.

Update on 29/07/2020

JobKeeper 2.0

The Federal Government has advised that the JobKeeper scheme will continue until  March 2021. There are some changes to the current arrangement for stages 2 and 3. Here’s a great article explaining what is currently known about the next phase of JobKeeper. Please ensure your church Treasurer is aware of this information.

Cash Boost

When churches submit their June 2020 BAS, there is an automatic additional Cash Boost of $5,000. This does not have to be applied for or refunded by the church. This amount will be added to the refund or deducted from the amount payable.

State Grant

The State Government has announced a Business Support Grant for businesses and not-for-profit organisations based in the Metro Melbourne area or Mitchell Shire. It is similar to the $10K grant, previously offered, but some of the criteria has changed. For more info click here.