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COVID-19: member update #10

May 19, 2020

Using Projections of Turnover for JobKeeper Eligibility

While some members have taken up the option of participating in the JobKeeper Scheme, HIA recognises that the eligibility criteria is complex for residential building businesses that are required to operate using regulated cash flow arrangements due to state building laws.

HIA has been working closely with the Treasury and the Australian Tax Office to ensure residential builders have access to JobKeeper.

Under the JobKeeper Scheme the Government will pay eligible employers a wage subsidy, being a flat payment of $1,500 per fortnight per eligible employee, for up to 6 months.

The JobKeeper scheme represents an important part of the Australian Government’s response to COVID-19 and can provide much needed assistance since home building activity has reduced over the last three months leading to pre-construction work reducing significantly.

It is important for businesses to look at their current operating procedures and identify meaningful and verifiable ways to project a decline in turnover.

The ATO has issued a ruling regarding the application of the decline in turnover test under the JobKeeper scheme. This ruling outlines various ways in which turnover can be determined and predicted to confirm eligibility for a business to the scheme.

Relying on a 30 percent decline in projected turnover will satisfy the JobKeeper eligibility requirements. The ATO accepts that there may be practical compliance difficulties in linking amounts you have received or invoiced based strictly on the time a supply is made or likely to be made.

HIA has released a new information sheet to assist members understand how they may apply the projected turnover approach and meet the basic turnover test based on their current business practices.

HIA’s suite of information sheets and webinars on JobKeeper also provide more details of how to navigate the Scheme.

For more information, members can contact HIA's Workplace Services team on 1300 650 620 or enquiry@hia.com.au.