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Expand JobKeeper to new businesses, says CPA Australia

Adrian Flores
Adrian Flores
01 September 2020 1 minute readShare
CPA Australia

CPA Australia has called for an expansion of JobKeeper to new businesses as the federal government’s extension of the scheme by six months receives parliamentary approval.

The federal government had its bill extending JobKeeper by an extra six months to the end of March 2021 passed by Parliament on Tuesday.

But in its recommendations for the 2020–21 federal budget, the accounting industry body said there are many new businesses and start-ups that had an active ABN as at 12 March 2020 but did not enrol for JobKeeper payments based on the rules.

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Similarly, it said there are new businesses that were in operation as at 12 March 2020 that had made taxable supplies and were reporting PAYG withholding amounts, that did not qualify for cash-flow boost payments due to the notice requirements.

As a result, CPA Australia recommended that the government consider either changing the rules for JobKeeper to allow those new to business to access the payment or to offer a new form of support to such businesses.

 

“One option is to allow those new to business that are ineligible for the JobKeeper payment or the cash-flow boost to receive a payment equal to 100 per cent of total liabilities reported in the June BAS (GST, PAYG instalments, PAYG withholding tax and other taxes), to a maximum of, say, $50,000, and a minimum credit even if the amount required to be paid is zero or the business is in a refund position,” the industry body said.

CPA Australia also said the credit should be applied to reduce any outstanding liabilities arising from the activity statement, with any excess credit being refunded to the business.

Treasurer Josh Frydenberg said he wouldn’t reveal whether the government would extend JobKeeper beyond March 2021, saying the focus of the upcoming federal budget is “ensuring that we get people back to work”.

“We’re already starting to see that of the 1.3 million people who either lost their job or went down to zero hours from the start of the crisis, around 700,000, are now back in a job,” Mr Frydenberg said.

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“Fifty-eight per cent of the 340,000 jobs created in the last two months are jobs that went to women, 44 per cent of those jobs have gone to young people. So, we are starting to see a recovery outside of Victoria.”

Expand JobKeeper to new businesses, says CPA Australia
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Adrian Flores
Adrian Flores

Adrian Flores is the deputy editor of MyBusiness. Before that, he was the deputy editor for SMSF Adviser as well as features editor for ifa (Independent Financial Adviser), InvestorDaily, Risk Adviser, Fintech Business and Adviser Innovation.

You can email Adrian at [email protected].

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