Frances Sievers
March 31, 2020
What is the JobKeeper payment?
It is a subsidy to continue
paying your employees. You will be able to claim a fortnightly payment
of $1,500 per eligible employee from 30 March 2020 for a maximum period
of 6 months.
Which employers will be eligible?
- Employers in an employment relationship with eligible employees as at 1 March 2020.
- self-employed individuals (businesses without employees) that meet the turnover tests
- Not-for-profit entities (including charities)
And also meet the following conditions:
- The business has a turnover of less than $1 billion and their turnover will be reduced by more than 30 per cent relative to a comparable period a year ago (of at least a month); or
- The business has a turnover of $1 billion or more and their turnover will be reduced by more than 50 per cent relative to a comparable period a year ago (of at least a month); and
- The business is not subject to the Major Bank Levy.
Which employees will be eligible?
- Currently employed by the eligible employer (including those stood down or rehired);
- Were employed by the employer at 1 March 2020;
- Full-time, part-time, or long-term casuals (a casual employed on a regular basis for longer than 12 months as at 1 March 2020);
- Are at least 16 years of age;
- Are an Australian citizen, the holder of a permanent visa, a Protected Special Category Visa Holder, a non-protected Special Category Visa Holder who has been residing continually in Australia for 10 years or more, or a Special Category (Subclass 444) Visa Holder; and
- Are not in receipt of a JobKeeper Payment from another employer.
(We strongly suggest that you ask your employees whether you are their
primary employer and ensure no other part time/casual positions will be
classed as their primary employer)
Conditions of receiving the JobKeeper payment:
- You need to ensure each eligible employee receives at least $1,500 per fortnight (before tax)
- If
an eligible employee was receiving less than $1,500 per fortnight
(before tax) you will need to top up the payment to the employee up to
$1,500.
- If an eligible employee was receiving more than $1,500 per fortnight (before tax) you can provide a top up to their normal wage. This would be dependent on whether the employee has been stood down we assume.
- You
will still need to pay superannuation guarantee on regular wages. If
an employee was on less than $1,500/fortnight it will be up to the
employer if they want to pay superannuation guarantee on the additional
top up payment.
- You must notify the employee that they are receiving the JobKeeper payment
How to apply?
If you are a business with employees:
- Register your interest via ato.gov.au from 30 March 2020
- You will be able to apply for the scheme via an online application when it is ready
- You must provide monthly updates to the ATO – i.e. eligible employees, turnover etc
If you are a business with no employees:
- Register your interest via ato.gov.au from 30 March 2020
- You need to provide your ABN, nominate yourself as the individual to receive the payment and provide your Tax File Number and a declaration regarding recent business activity
- You will need to provide a monthly update to the ATO to declare your continued eligibility for the payments. Payment will be made monthly to your bank account.
When will you receive the subsidy?
- The subsidy starts on 30 March 2020
- The first payments will be paid to businesses in the first week of May.
- Payments will be made by the ATO monthly in arrears
Does the receipt of the JobKeeper payment effect other Centrelink payments?
Yes.
If you are a sole trader or an employee you must tell Centrelink you are receiving JobKeeper payments as this will have an effect on all Centrelink related payments.
