JobKeeper Payments – What you need to know

Are you eligible for the Government’s new Jobkeeper stimulus? 

The Government’s new Jobkeeper payment is designed to assist businesses who are affected by COVID-19 with keeping employees by providing a fortnightly subsidy. The subsidy amount is $1,500 per eligible employee per fortnight, claimable from 30 March 2020 for a period of up to 6 months.

Who is an eligible employer?

Employers will be eligible if they meet the following criteria set by the Government:

  • Turnover is less than $1 billion and turnover has or will be reduced by more than 30% relative to a comparable period a year ago (of at least a month);
  • Turnover is $1 billion or more  and turnover has or will be reduced by more than 50% relative to a comparable period a year ago (of at least a month);
  • the business is not subject to the Major Bank Levy
  • Employer must have been in an employment relationship with eligible employees as at 1 March 2020 and confirm that the employee is currently engaged
  • Not for profit entities (including charities) and self-employed individuals are eligible

Who is an eligible employee?

  • Are currently employed by an eligible employer (including those stood down or re-hired)
  • were an employee at 1 March 2020
  • are full-time, part-time or casuals who have been with the employer for longer than 12 months
  • Are at least 16 years old
  • are an Australian Citizen, hold a permanent visa, have a protected Special Category visa, or a non-protected one if they have been residing continually in Australia for 10 years or more, or a special category (subclass 444) visa holder;
  • Are not receiving a jobkeeper payment from another employer

How to apply?

Employers should register their interest now on ATO to stay up to date with the application process. In order to register your interest you will require your business name and ABN along with a contact email and mobile number.

Can I apply if I don’t have employees?

Yes, businesses without employees can apply via the ATO also. You will need your ABN, nominate an individual to receive the payment and provide that individual’s TFN and a declaration of recent business activity.

If you are self-employed, you will be required to provide monthly updates to the ATO to declare your continued eligibility.

When will I receive the subsidy?

The subsidy commences on 30 March 2020. Payments to employers will be made monthly in arrears with the first payment to be received in the first week of May. The subsidy will be paid to the employer.

How do I know what to pay eligible employees?

Employers must ensure that all employees that they receive the subsidy for are paid a minimum $1,500 per fortnight, before tax. Employers can elect to top up their employees pay to maintain their usual salary or wage. If an employee is usually paid less than the subsidy amount e.g. $1,000 per fortnight, then the employer must pass on the full subsidy of $1,500 regardless.

Do employers have to pay super on payments above the subsidy?

It is up to the employer if they would like to pay super on payments above the employees usual wage. E.g. if an employee is usually paid $1,000 per fortnight by the employer, then the employer must pay superannuation guarantee on this amount but can decide whether to pay superannuation on the additional $500.

Useful Links

ATO

Treasury

business.gov.au

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