Accountancy groups are in urgent discussions with the NSW government about recent changes to the JobSaver business support payments.
On Friday night, Service NSW emailed major accounting and bookkeeping bodies, stating that businesses will need to reaffirm they are experiencing a 30% decline in turnover every fortnight to continue receiving JobSaver payments.
However, CPA Australia and the Institute of Certified Bookkeepers have pushed back against the new requirements, saying they are burdensome for small business and their advisors.
Here’s everything we know about changes to JobSaver requirements.
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What are the new requirements?
Each fortnight, businesses must prove they continue to experience at least a 30% decline in turnover and have maintained their employee headcount to continue receiving JobSaver payments.
What are the professional bodies calling for?
CPA Australia and the Institute of Certified Bookkeepers are in urgent discussions with the NSW government and are calling for a change to the fortnightly requirement.
Matthew Addison, executive director of the Institute of Certified Bookkeepers, wants the new requirement to change to a monthly declaration.
“Monthly reporting is more natural, it’s closer to business reporting systems at the moment, and it fits the business cycle in terms of how often businesses invoice,” Addison tells SmartCompany.
Has Service NSW backflipped on its plans?
Service NSW has not completely removed the new fortnightly turnover and headcount requirements. However, it has given businesses a grace period for the first two-week payment period.
This grace period means that small businesses and their advisors don’t have to prove their eligibility for JobSaver this fortnight.
Will further changes be announced?
The grace period is only an interim measure that Service NSW has announced while professional bodies consult with the NSW government.
Addison says the NSW government had so far been successful in consulting with industry and professional bodies prior to rolling out changes to business support.
“I think parts of the NSW government thought they had discussed this, but they didn’t quite realise what was the impact of the words they have put on the declaration,” he says.
“We’re really hoping that with some positive conversations today some of those matters can be turned around.”
SmartCompany has contacted Service NSW and NSW Treasury.