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.