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‘Wait and see’ approach to JobKeeper legislation could cost big
New legislation to be announced by the government will allow businesses, including law firms, to access payments that will ultimately protect staff and profits.
Naomi Neilson
Businesses with a turnover of less than $1 billion that can demonstrate a fall from turnover by at least 30 per cent will be able to access the fortnightly $1,500 payments. At the time of writing, the government had tabled the discussion and it is expected to pass Wednesday.
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Pilot Partners head of taxation Murray Howlett said business owners – which will include law firms that meet the requirements – who take a “wait and see” approach to the federal legislation could be missing out on huge financial incentives.
Mr Howlett said: “The government has encouraged businesses for when things get back to normal but there is a disconnect between registering for the JobKeeper allowance now and paying staff, including casual employees and waiting for the ATO to reimburse funds.”
“They are concerned that if they do register and their turnover does not fall below the 30 per cent threshold, they have an issue and if they don’t register because they don’t expect to have a shortfall, then they’ve entirely missed the boat.”
He said it is an “all or nothing” choice, but acknowledges that businesses will be pressured to register for the wage subsidy by staff who could stand to earn more than their income.
“You have to commit to the behaviour today and start paying the allowance to staff without really knowing what your turnover will be in the coming three months and understandably, that is a daunting proposition… Ultimately, the risk of doing nothing at all may be greater than the risk of registering,” Mr Howlett said.
