Clarity on Job Keeper – Job Seeker for artists and arts organisations in COVID-19
As a freelance writer and performer, I’m dusting off my very old accounting degree to provide some clarity where I can to arts businesses and artists during the COVID-19 crisis.
There is a lot of confusion at the moment regarding our industry and the support available. I attended a webinar from BDO accountants this morning and this is what I have come to understand.
Please note firstly that this is general information and each situation has its own variations.
The situation is currently still evolving. The legislation passed yesterday allows the treasury office to make “rules” about who gets the payment and who doesn’t so there is still room to rally. All activism should be directed to the treasury office.
Also, it would be great to get an indication of what support arts practitioners need at the moment from an accounting perspective (please comment below). I’d like to allocate some of my time to helping people during this time.
1) You can go onto Job Keeper as a sole trader if you can show your income has dropped 30% and you have an ABN (the 30% drop applies to your ABN income for those who use a combination of PAYG and ABN income). The payment is $1500 per fortnight for 6 months. You will be taxed before you get the payment so it might end up being $1300. You can register your interest to get this payment here however you may be better off on Job Seeker (see below) https://www.ato.gov.au/general/gen/JobKeeper-payment/. We do not have information yet on how you will need to prove the 30% drop. Once this info is available I will do another post. It will most likely be comparing a month of income before COVID-19 vs after COVID-19. 16 years and over is the age for this payment.
2) All arts practitioners should be looking into this option because you could potentially get more money than if you are on Job Keeper. Anyone can go onto Job Seeker, if you have lost your job or are a freelancer or contractor who has lost work. They have waived the asset test, so it doesn’t matter what assets you have. You can still make money on this payment, but how much you can make is listed on this web page, it depends on your circumstances. What’s really great is that they have raised the partnered household income to $3,086.80 gross per fortnight (this includes income your partner makes and includes all forms of income, even rental income from an investment property). You need to be 22 years old (see point 4. below if you are under). This payment also includes a coronavirus subsidy of $550 on top of the regular job seeker payment which is a sliding scale depending on how much you make (refer here https://www.servicesaustralia.gov.au/individuals/services/centrelink/jobseeker-payment/how-much-you-can-get). The $550 subsidy will only be paid for 6 months. Job Seeker payments don’t get taxed before the money hits your account but they need to be included in your tax return. If your overall income is less than $18,200 then you don’t need to pay tax. You can apply for this payment through Centerlink. Also note that if you have applied for this payment between 12 March 2020 to 13 April 2020 (inclusive) you get a $750 one off payment. If you have a disability you can apply for the disability payment. Mutual Obligations for Job Seeker have been waved at present. You will need to provide a profit and loss statement and have your previous tax return completed. From personal experience, arts businesses on Job Seeker can argue that their arts business is their work and as such they can usually get out of working in other areas. I believe in the current climate they won’t be doing much chasing.
3) Regarding Job Keeper for non-sole traders, eligible employers (that have had a drop of 30% in income, there are also some other considerations) will need to apply to the ATO to pay their employees the Job Keeper payment (see points below on which employees). Employers will need to register their interest with the ATO. Job Keeper was created so that employers and employees can maintain their relationship and this payment only lasts 6 months. It’s so you can pick up where you left off. You will need to “return to each other”. It’s not clear yet what will happen if you don’t, you may have to pay the money back. Refer to this fact sheet from the treasury office. The employer has to initiate this process. They are not forced to. You will need to let your employer know that you would like the Job Keeper payment. So what “kind of employees” can get the Job Keeper?
a) Full time employees.
b) Part-time employees
c) Casual employees that have been with the company for 12 months or more as of March the 1st
d) Fixed term contractors, if they had a contract with an employer as of the 1st of March. If you are on a casual contract, you have to have had the contract for 12 months or more. If you are eligible approach your current employer, and they would get the payment for the duration of their contract. I’m looking into whether or not those employers would then be able to extend those contracts so the contractor can continue to get the payment for 6 months (if their contract is less than 6 months). This is something we can definitely rally the Treasury Office for at the very least.
Also note, if you don’t usually make $1,500 per fortnight from your employer, please note this from the Treasury website “If you want to claim the subsidy for an eligible employee and they have not been paid $1,500 per fortnight since 30 March 2020, employers must pay a ‘top-up’ payment to employees so that they are eligible. The ATO will provide further guidance on how this will work.”
16 years and over is the age for this payment.
4) If you are under 22 years old you can go onto youth allowance. This payment also includes a coronavirus subsidy of $550 on top of the regular payment which is a sliding scale. https://www.servicesaustralia.gov.au/individuals/services/centrelink/youth-allowance-job-seekers/how-much-you-can-get
For Job Keeper, please check out think link of FAQ from the Treasury Office.
Hope this helps! Let me know how else I can use my account degree to help the arts!
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Photo by Micheile Henderson on Unsplash