JobKeeper is an example of this. Since its release in March there have been updates, alternative tests provided, clarified interpretations and deadline extensions.
Key to a successful application is ensuring you use the correct turnover to assess your eligibility. The concept of “turnover” is more closely aligned with GST principles, than accounting or income tax. Within this, it is essential that you correctly apply GST in the right place. For instance, we rely on the idea of “supply” in accordance with the GST legislation. A party that pays the bill may not be the party that receives the “supply” of services from your organisation. This can make a substantial difference to the outcome of your application and we know this has been a particular pain point for many of our clients.
Using the concept of “supply” for the turnover test means that it can be applied by not for profit and for profit organisations alike. However, various modifications necessary for JobKeeper to apply as broadly as possible, means that the ATO may not be able to verify these figures against Business Activity Statements. Therefore, the ATO will be reviewing applications, and any JobKeeper payments made to an organisation that is later found to be ineligible will need to be paid back with interest. It is therefore essential to ensure your application is correct. If you have already made an application and would like to check your figures, you can resubmit.
To read more about how the turnover test works you can read more on our JobKeeper hub. Grant Thornton are available to provide a detailed analysis based on your personal circumstances to ensure your application is correct and are developing an automated tool that will validate your calculations.
Can government and non-government funding be included in turnover?
If you are an ACNC registered charity, there is an ability to make an election to disregard supplies made to government agencies where the supply meets certain criteria. This can benefit the application or work against it, so it is important to understand the concepts behind the election and make an informed choice based on the guidelines. The simple answer is, therefore, Yes or No. All revenue streams need to be reviewed and considered for eligibility and inclusion in the reported turnover.
Should aged care services be included?
Organisations who provide aged care services including residential care, Home care packages (HCP) and the Commonwealth Home Support Program (CHSP) directly to the care recipient receive funding from the Government for the provision of these services. These arrangements may be considered a direct supply of service to the care recipient and therefore non-government revenue, and can be included in the JobKeeper application.
What are the considerations for Disability services providers?
An issue for Disability services providers to consider is that in the comparison period, a number of service providers would have been funded through block funding from the government in order to provide services to consumers. In the current period, however, these services are now provided under the NDIS system. Given the complexities in the different revenue streams and allocation between government and non-government funding, this review should be undertaken by a GST and Tax expert.
At any time you can go to our JobKeeper hub for up to date information and insight about the JobKeeper hub.