Strategies and advice for businesses to stay in control through COVID-19 and get ahead of the pack

Get up to speed here

COVID-19 Business Continuity – 13th May

I’m here with the COVID-19 business continuity update for Wednesday 13th May.

In today’s update:
1. Update: When JobKeeper payments will be paid to businesses
2. Evidence of eligibility to access JobKeeper

 

1. Update: When JobKeeper payments will be paid to businesses

The ATO has provided an update on when businesses can expect to receive JobKeeper payments. This update was posted on the ATO website yesterday:
JobKeeper payment due

 

 

 

 

See here: https://community.ato.gov.au/t5/Tax/COVID-19-support-JobKeeper-payment/ta-p/40276

The sooner your bookkeeper submits your JobKeeper information to the ATO, the sooner payments will flow to your business.

You can direct your bookkeeper to this guide on the ATO website. It has screenshots of each step of the process for reporting eligible employees and JobKeeper top-up payments via STP. There’s also a guide for how to make changes if you need to correct any of your JobKeeper reported information.

Here’s the link for your bookkeeper: https://www.ato.gov.au/General/JobKeeper-Payment/In-detail/Reporting-eligible-employees-and-JobKeeper-top-up-payments-via-STP/

———————————————–

2. Evidence of eligibility to access JobKeeper

The ATO have issued guidelines on how it will analyse JobKeeper claims, including examples of what it considers to be valid and invalid situations where JobKeeper has been accessed.
The purpose of the guidelines is to ensure that businesses understand their obligation to meet the integrity standard for participation in JobKeeper. Claims for JobKeeper may draw the attention of the Tax Commissioner if they consider the application to be “contrived” or “artificial”.

I recommend you keep evidence of how you assessed your eligibility for JobKeeper. This includes a spreadsheet of the test you applied and the specific numbers you used to validate your eligibility. I know many of you have already prepared spreadsheets of this nature with your coach.

In addition, I strongly recommend you keep other supporting documentation that
speaks to the forecast decline in your revenue. The type of data that I feel adds support to your JobKeeper claim includes:
Revenue forecasts – separating confirmed projects/orders and likely projects/orders.
Marketing test and measure reports – this will be evidence of the decline in enquiries and conversions.
Google Analytics and/or Google Ads reports – the decline in visits/clicks will provide proof of a fall in prospect interest.
Your client’s projections – if your clients have advised you that they are anticipating a reduction in their sales and this will flow onto you, then retain this data as well.
Anecdotal evidence – any other evidence from conversation with clients, suppliers and other industry contacts. Please document these conversations. For example, note the cancelled jobs, the warm leads that have turned cold, clients that have slowed/stopped their operations, etc.)
Also make a note of the actions you are taking to mitigate your loss (reducing team hours, seeking new business opportunities, etc.)
I recommend you email this documentation to your coach at the time you record it. This email will be date stamped and serve as a narrative of the situation at the time you applied for JobKeeper.

Be particularly vigilant with your record keeping if your business has been hit harder than your competitors for whatever reason. Standing out from the crowd does not necessarily mean that you should not have claimed JobKeeper, but it may flag your business for follow up by the ATO. The evidence you can provide to support your claim will be important to resolving any concerns of the ATO.

One point to note is that there’s no requirement to prove that COVID-19 was the cause of the decline in your revenue – you just need to show the decline was caused by forces outside your control, and was not contrived or artificial.

I wanted to brief you on this not to alarm you, but to alert you to what you can do to ensure you would pass the integrity test if the ATO were to ask the question.

———————————————–

We’re starting to hear more thoughts from the various governments on areas where they may be looking to stimulate the economy. We’ll bring you more on this as we gather further information.

Ash

Ashley Thomson B.Eng(Hons), Grad. Dip. Mgmt, MEI
Managing Director
Tenfold Business Coaching

Comments are closed, but trackbacks and pingbacks are open.

ABOUT US
We are the leading business coaching firm in Melbourne, offering mentoring and coaching for business owners. People often ask which industries we specialise in; do we provide business coaching for manufacturing, or are we experts in mentoring businesses in the trades, such as electricalplumbing and landscaping? Well, yes. And retail, and construction, and IT, and allied health… the list goes on. (We even coach other business coaches – true!)
..
Whatever industry, business is complex but the answer is simple: every Tenfold business coach is experienced in business and an expert in profitability.
CONTACT US

Feel free to drop us a line by phone, or send us an email.

Phone: 03 9813 8777
Address: 6/1949 Malvern Rd Malvern East VIC 3145