Under the JobKeeper Payment, businesses or not-for-profits impacted by the Coronavirus 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 eligible employee from 30 March 2020 until 27 September 2020.
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Eligible employers (Smally businesses)
Employers (including not-for-profits) will be eligible for the subsidy if:
• their business has an aggregated turnover of less than $1 billion (for income tax purposes1) and they estimate their GST turnover has fallen or will likely fall by 30 per cent or more;
Self-employed individuals (businesses without employees) will be eligible to receive the JobKeeper Payment where they meet the relevant turnover test outlined above.
Eligible employees are employees who:
• are currently employed by the eligible employer (including those stood down or re-hired); • were employed by the employer at 1 March 2020; • are full-time, part-time, or long-term casuals (a casual employed on a regular and systemic 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; • are at least 16 years of age at 1 March 2020; • 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; and • are not in receipt of a 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.
If your employees receive the JobKeeper Payment, this may affect their eligibility for income support payments and they must report their change in circumstances to Services Australia online at my.gov.au or by telephone, to avoid incurring a debt that will be required to be repaid.
Eligible employers will be paid $1,500 per fortnight per eligible employee. Eligible employees will receive, at a minimum, $1,500 per fortnight, before tax, and employers are able to top-up the payment.
Where employers participate in the scheme, their employees will receive this payment as follows.
• If an employee receives $1,500 or more in income per fortnight before tax, they will continue to receive their regular income according to their prevailing workplace arrangements. The JobKeeper Payment will assist their employer to continue operating by subsidising all or part of the income of their employee.
• If an employee would otherwise receive 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.
• If an employee has been stood down, their employer must pay their employee, at a minimum, $1,500 per fortnight before tax.
No superannuation guarantee payments are required to be paid on any additional payment made because of the JobKeeper Payment.
Payments will be made to the employer monthly in arrears by the ATO.
The subsidy will start on 30 March 2020, with the first payments to be received by employers in the first week of May. Businesses will be able to register their interest in participating in the Payment from 30 March 2020 at ato.gov.au.