Business impacted by the Coronavirus will be able to access a subsidy from the government to continue to pay their employees.
An affected employer will be able to claim $1500 per fortnight per eligible employee from 30 March 2020 for a maxiam period of 6 months.
The subsidy will start from 30 March, with the first payment to be received by the first week of May 2020.
Payments will be made to employers by ATO monthly in arrears.
A person receiving job seeker payment can’t also receive the job keeper payment.
Now, let’s lay out more details about JobKeeper payments.
Which employers are eligible for JobKeeper payments?
Employers will be eligible for the subsidy if:
- your business turnover is less than $1 billion and your turnover will be reduced by more than 30% relative to a comparable period a year ago (of at least a month); or
- your business has a turnover of $1 billion or more and your turnover will be reduced by 50% relative to a comparable period a year ago (of at least a month); and
- your business is not subject to the Major Bank Levy.
Eligible employees must have been employed by the employer as at 1 March 2020. The employer has to confirm that each eligible employee is currently engaged in order to receive JobKeeper payments.
Not for profit entities (including charities) and self employed individuals (business without employees) that meet the turnover tests (turnover less than 1 billion & turnover will be reduced by 30% compared to the same time last year) that apply for businesses are eligible to apply for JobKeeper payments.
Eligible employees are employees who
- are currently employed by eligible employer including those stood down or rehired;
- were employed by the employer as at 1 March 2020;
- are full time, part time or long term casuals (a casual employee employed on a regular basis for longer than 12 months as at 1 March 2020);
- 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 continuously in Australia for 10 years or more, or special category (subclass 444) visa holder; and
- are not in recipient of JobKeeker payments from another employer.
Obligation on employers
To receive the JobKeeper payment, employers must:
- register an intention to apply on the ATO website and asset that they have or will experience the required turnover decline;
- provide information to ATO on eligible employees, including the number of eligible employees engaged as at 1st March 2020 and these currently employed by the business, including those stood down or rehired;
- ensure that each eligible employee receives at least $1500 per fortnight before tax;
- notify all eligible employees that they are receiving the JobKeeper payments;
- Continue to provide information to the ATO on a monthly basis, including the number of eligible employees employed by the business.
Obligation on employees
Employees will receive a notification from their employer that they are receiving the JobKeeper payments. Most employees will need to do nothing further.
Employees in the following circumstances will have additional obligations:
- Employees have multiple employers must notify the employer that is their primary employer as one employee can’t be in recipient of JobKeeper payment from more than one employer.
- Employees that are not Australian citizen must notify their employer of their visa status, to allow their employer to determine if they are an eligible employee.
- Employees are currently in recipient of an Income Support payment must notify Service Australia of their new income.
What employees will get
Employees will be able to receive this payment in a number different ways:
- If your ordinary income is $1500 or more per fortnight before tax, you’ll continue to receive your regular income. The JobKeeper payment will subsidise that first $1500 of your income.
- If your ordinary income is less than $1500 per fortnight before tax, your employer must pay you a minimum of $1500 per fortnight before tax.
- If you have been stood down, your employer must pay you $1500, as a minimum per fortnight before tax.
- If you were employed before 1 March 2020, subsequently ceased employment and then were re-engaged by the same eligible employer, you will receive $1500 as a minimum per fortnight before tax.
Employers must continue to pay the superannuation guarantee on regular wages but it is up to the employer whether they pay superannuation on additional JobSeeker payments.
Businesses without employees
Sole traders, self employed can participate in this scheme and will need to register with ATO.
Business without employees will need to:
- provide a ABN for their business
- nominate an individual to receive this payment
- provide that individual’s tax file number and provide a declaration as to recent business activity
People who are self employed will need to provide a monthly update to the ATO to declare their continued eligibility for the payments.
Payment will be made monthly to the individuals bank account.
Click to read the lastest Jobkeeper information and legislation from Australian Government.