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The JobKeeper Payment fact sheet 6 - Record-keeping and ATO compliance

Under the JobKeeper Scheme the Government will pay eligible employers a wage subsidy, being a flat payment of $1,500 per fortnight per employee for up to 6 months. You must pay your employees the full wage subsidy, being a minimum of $1,500 per fortnight before tax.

Set out below are the recording keeping and reporting requirements for a business that is eligible for the JobKeeper Payment.

 

 

Record keeping requirements – Eligibility for the JobKeeper Payment

Employers receiving the JobKeeper Payment are required to retain records to allow any information provided to the ATO to be verified for five years after a payment is made.

The turnover test

  • There is no ongoing requirement for a business to comply with the turnover test once an application has been made and accepted by the ATO.
  • There is a monthly reporting requirement. An eligible employer must notify the ATO of:
    • its current GST turnover for the reporting month; and
    • its projected GST turnover for the following month.

The report must be made in the approved form within 7 days of the end of the reporting month.

This information will not affect an entity’s eligibility, including in respect of the decline in turnover test.

Eligible employees

A business must provide information about eligible employees to the ATO.

In order to collect this information, the employer must send the JobKeeper employee nomination notice to all nominated employees for the scheme to complete and return to you. If you plan to claim JobKeeper Payments for April this must be filled out by the end of May and kept on file.

If nothing changes regarding your eligible employees you do not need to provide this information again.

Record keeping requirements - JobKeeper Enabling Directions

JobKeeper enabling directions provide employers with a range of options to temporarily manage staff by providing greater flexibility around hours of work.

If you issue a JobKeeper enabling direction to stand down an employee or to change an employee's hours or work location, you must keep a record of:

  • The consultation that was carried out with the eligible employee/s about the proposed direction; and
  • The direction provided.

ATO Compliance

The ATO has issued a ruling which provides further details in relation to their approach to compliance, particularly in relation to the satisfaction of the decline in turnover test.

You will not be penalised if your actual turnover is greater than what you predicted when making an application for JobKeeper.

Your projected turnover needs to be a reasonable assessment of what was likely at the point in time you calculated it.

If it later turns out that your actual turnover for the relevant month or quarter is greater than your projected turnover, you do not lose access to the JobKeeper payments and you will not incur a penalty or be required to make any repayments. The ATO will accept your assessment of these turnovers unless there is a reason to believe that the calculation of your projected turnover was not reasonable.

If there is a significant difference between your projected turnover, and what eventuates, the ATO will likely make further enquiries to ascertain whether your assessment of what was likely to happen was reasonable.

Keeping good records and documentation that explains how you undertook the calculation of your projected turnover will be necessary to show how you took reasonable steps in making decisions.

Penalties

The ATO can impose penalties if it determines that an arrangements exists specifically to receive a JobKeeper payment that without that arrangement the entity would not receive.

More generally employers who do not comply with the obligations tied to the JobKeeper payment can be liable for a wide range of significant sanctions.

The below table sets out some of the offences and penalties linked to the misuse of the JobKeeper Scheme.

Offence

Penalty

Administrative penalties for making a false and misleading statement

Financial penalty up to 75% of the amount of any overpayment

Criminal offences for making false or misleading statements to taxation officers

  • Imprisonment for up to 12 months AND
  • A fine of up to $10,500 for an individual and $52,500 for companies.

Failure to comply with the requirements under taxation law

  • Imprisonment for up to 12 months AND
  • A fine of up to $10,500 for an individual and $52,500 for companies.

Obtaining financial advantage

Imprisonment for up to 12 months

Obtaining financial advantage by deception

Imprisonment for up to 10 years

Conspiracy to defraud

Imprisonment for up to 10 years

BackOverview | Fact sheet 2 | Fact sheet 3 | Fact sheet 4 | Fact sheet 5 | Fact sheet 6 

Further information

This fact sheet is part of a series on JobKeeper Payment aimed at assisting members understand the requirements. More information is set out in:

#1 The JobKeeper Payment - Overview

#2 The JobKeeper Payment - Eligibility

#3 The JobKeeper Payment - Applying

#4 The JobKeeper Payment – Receiving the Payment

#5 The JobKeeper Payment – Making changes to working arrangements

The Federal Government has released the following information:

Contact a HIA Workplace Adviser on 1300 650 620 for further information and advice

Reference: NFSIRE1328A