The Government have announced a JobKeeper payment to help keep more Australians in jobs and support businesses affected by the economic impact caused by the Coronavirus.
Under the JobKeeper payment, business or not-for-profits will be able to access a subsidy from the Government to continue paying their employees. Affected employers will be able to claim a payment of $1,500 per fortnight per employee from 30 March 2020 until 27 September 2020.
Employers will be eligible for the subsidy if their GST turnover has fallen or will likely fall by 30% or more. Self employed individuals (businesses without employees) will be eligible to receive the JobKeeper payment where they meet the relevant turnover test.
A business must compare their turnover to a corresponding period a year earlier. Turnover is calculated as it is for GST purposes, and is reported
on Business Activity Statements.
Eligible employees are:
currently employed by the eligible employer (including those stood down or re-hired);
were employed by the employer at 1 March 2020;
are a full-time, part-time, or long-term casuals (a casual employed on a regular and systematic basis for longer than 12 months as at 1 March 2020);
are a permanent employee of the employer, or if a long-term casual employee, not a permanent employee of any other employer;
were at least 16 years of age at 1 March 2020, with the exception of full time students who are 17 years old and younger and who are not financially independent;
are an Australian citizen, the holder of a permanent visa, or a Special Category (Subclass 444) Visa Holder at 1 March 2020;
were a resident for Australian tax purposes on 1 March 2020;
are not in receipt of JobKeeper Payment from another employer.
Employees receiving Parental Leave Pay from Services Australia are not eligible for the JobKeeper Payment. However, employees on parental leave from their employer will be eligible. Employees receiving workers compensation will be eligible for the JobKeeper Payment if they are working, for example on reduced hours, but will generally not be eligible if they are not working.
Businesses with employees
Employers can register their interest by applying for the JobKeeper Payment via the Business Portal using myGovID or their registered tax agent from 30 March 2020 until 31 May 2020.
Employers will need to identify eligible employees for JobKeeper Payments and must provide monthly updates to the ATO through the Business Portal or your registered tax agent. This is not a retest of your eligibility, but rather an indication of how your business is progressing under the scheme. An employer that elects to participate is required to include all eligible employees in the scheme. A business owner who is a permanent employee of another employer is only eligible for the JobKeeper Payment from that employer.
Participating employers will be required to ensure eligible employees receive a minimum $1,500 per fortnight, before tax. It will be up to the employer if they want to pay superannuation or any additional wage paid because of the JobKeeper Payment. The first payment will be received by employers from the ATO in the first week of May.
Businesses without employees
Self-employed businesses can register their interest in applying for JobKeeper Payment via the Business Portal using myGovID, or their registered tax agent from 30 March 2020.
Businesses without employees will need to provide an ABN for their business, nominate an owner to receive the payment and provide that owner’s TFN and provide a declaration as to recent business activity. They will need to provide monthly updates to the ATO through the Business Portal or your registered agent.
A business owner who is permanent employee of another employer is only eligible for the JobKeeper Payment from that employer.
For further information about the JobKeeper Payment please refer to the ATO website https://www.ato.gov.au/General/JobKeeper-Payment/Employers/