On 30 March 2020 the Federal Government announced the introduction of the JobKeeper Payment package, which aims to provide businesses significantly impacted by the Coronavirus outbreak with access to a subsidy from the Government, so that they can continue paying their employees. This assistance aims to help businesses to keep people in their jobs and re-start when the crisis is over. For employees, this means they can keep their job and earn an income – even if their hours have been cut.
An amount of $1,500 per eligible employee (before PAYG tax) can be claimed each fortnight from 30 March 2020 to at most 30 September 2020 (ie a maximum of 6 months).
PLEASE NOTE: The Australian Tax Office (ATO) has updated their website to include the JobKeeper Payment here.
The ATO has also extended the time to enrol for the initial JobKeeper periods, from 30 April 2020 until 31 May 2020. If you enrol by 31 May you will still be able to claim for the fortnights in April and May, provided you meet all the eligibility requirements for each of those fortnights. This includes having paid your employees by the appropriate date for each fortnight.
A. Which employers are eligible?
- Any employer whose business has a turnover of less than $1 billion and their turnover will be reduced by more than 30% relative to a comparable period a year ago (of at least a month); or
- Any employer whose business has a turnover of $1 billion or more and their turnover will be reduced by more than 50% relative to a comparable period a year ago (of at least a month); and
- The business is not subject to the Major Bank Levy.
The employer must have been in an employment relationship with eligible employees as at 1 March 2020, and confirm that each eligible employee is currently engaged in order to receive JobKeeper Payments.
Not-for-profit entities (including charities) and self-employed individuals (businesses without employees), that meet these turnover tests that apply for businesses, are eligible to apply for JobKeeper Payments.
B. Which employees are eligible?
Subject to the above about employers, all of the following must apply:
- An employee who is currently employed by the (abovementioned) eligible employer (including those stood down or re-hired) who was:
- employed by the employer as at 1 March 2020;
- employed as 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); - An employee who is at least 16 years of age;
- An employee who is 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
- An employee who is not in receipt of a JobKeeper Payment from another employer.
(NOTE: If your employees receive the JobKeeper Payment, this may affect their eligibility for payments from Services Australia as they must report their JobKeeper Payment as income.)
C. How do you apply?
Eligible early childhood education and care service providers can register via the Australian Taxation Office (ATO)'s JobKeeper registration page.
The ATO will then use Single Touch Payroll to pre-populate all of the eligible employees' data for processing.
Eligible employers will still need to identify eligible employees for JobKeeper Payments and must provide monthly updates to the ATO.
D. Does the employer need to pay the employees' superannuation on the JobKeeper Payments?
It will be up to the employer if they want to pay superannuation on any additional wage paid because of the JobKeeper Payment.
E. When will employees begin receiving the JobKeeper Payments?
At the earliest, the JobKeeper Payments will be distributed to employers from the ATO in the first week of May 2020.
Please note that JobKeeper Payments will be received before PAYG tax.
In other words, the JobKeeper Payments will be received by employers each month in arrears.
F. What if the eligible employee ordinarily earns less than $1,500 per fortnight?
If an employee ordinarily receives less than $1,500 in income per fortnight before tax, their employer must pay their employee, at a minimum, $1,500 per fortnight, before tax.
G. What if the employee's employment had ceased after 1 March 2020?
If an employee was employed on 1 March 2020, subsequently ceased employment with their employer, and then has been re-engaged by the same eligible employer, the employee will receive, at a minimum, $1,500 per fortnight, before tax.
H. How will the employees know in advance if they will be receiving JobKeeper Payments?
The employer must advise employees after the employer has confirmed her/his identification of eligible employees to the ATO.
I. Can employees receive more than one JobKeeper Payment from different employers?
No. There can only be one JobKeeper Payment via one employer.
Visit the ATO website here for the latest information on JobKeeper.
UPDATED 28TH APRIL 2020
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