JobKeeper Payment for employers and employees

Under the JobKeeper Payment, businesses impacted by the coronavirus will be able to access a subsidy to continue paying their employees. The Government will provide a fortnightly payment of $1,500 per eligible employee until 27 September 2020.

The JobKeeper Payment is a scheme to support businesses significantly affected by the coronavirus to help keep more Australians in jobs. The JobKeeper Payment is administered by the Australian Taxation Office.

The JobKeeper payment is open to eligible employers to enable them to pay their eligible employee’s salary or wages of at least $1,500 (before tax) per fortnight.

Eligible employers will be reimbursed a fixed amount of $1,500 per fortnight for each eligible employee.

Employers will need to pay eligible employees a minimum of $1,500 (before tax) per fortnight to claim the JobKeeper payment. This will be paid to the employer in arrears each month by us. The first payments to eligible employers will commence in the first week of May 2020. JobKeeper payments can be made for the period beginning 30 March 2020.

If employers do not continue to pay their employees for each pay period, they will cease to qualify for the JobKeeper payment.

To be eligible for the JobKeeper payment, employers and their employees must meet a range of criteria.

Eligible employers

Employers will be eligible for the JobKeeper payment if all of the following apply:

• On 1 March 2020, you carried on a business in Australia or were a not-for-profit organisation that pursued your objectives principally in Australia.
• You employed at least one eligible employee on 1 March 2020.
• Your eligible employees are currently employed by your business for the fortnights you claim for (including those who are stood down or re-hired).
• Your business has faced a:
  • 30% fall in turnover (for an aggregated turnover of $1 billion or less)
  • 50% fall in turnover (for an aggregated turnover of more than $1 billion), or
  • 15% fall in turnover (for ACNC-registered charities other than universities and schools)
• Your business is not in one of the ineligible categories.

You should note that the turnover calculation is based on GST turnover, but there are some modifications, including disregarding GST grouping where two or more associated business entities operate as a single GST group. We will provide further information soon about applying the turnover test.

Aggregated turnover

Your aggregated turnover broadly includes your annual turnover, plus the annual turnover of all the entities that are connected or affiliated with you, subject to specific adjustments (for example, for transactions between you and those other entities). These connected entities or affiliates may be based in Australia or overseas.

Eligible employees

Your employee is eligible under the JobKeeper Payment scheme if they:

• are employed by you (including those stood down or re-hired)
• were either
  • permanent full-time or part-time employee at 1 March 2020
  • long-term casual employee (employed on a regular and systematic basis for at least 12 months) as at 1 March 2020 and not a permanent employee of any other employer
• were at least 16 years of age on 1 March 2020
• were an Australian resident as at 1 March 2020 within the meaning of the Social Security Act 1991, which requires that they reside in Australia, and are one of an Australian citizen, the holder of a permanent visa, or a Protected Special Category Visa Holder. More information about these requirements can be found from the Services Australia website under residence descriptions. Your employee can also be an Australian tax resident who is a Special Category (Subclass 444) Visa Holder. Employees who are not permanent residents of Australia must notify you of their visa status to allow you to determine if they are eligible.
• were not in receipt of any of these payments during the JobKeeper fortnight
  • government parental leave or Dad and partner pay
  • a payment in accordance with Australian worker compensation law for an individual’s total incapacity for work
• agree to be nominated by you, learn more about nominating employees

You cannot claim for any employees who:

• were first employed by you after 1 March 2020
• left your employment before 1 March 2020
• have been, or have agreed to be, nominated by another employer

Casual employees are not eligible unless they were employed by you on a regular and systematic basis for at least 12 months as at 1 March 2020.

If your employees have multiple employers, they can usually choose which employer they want to nominate through. However, if your employees are long-term casuals and have other permanent employment, they must choose the permanent employer and cannot nominate you. They cannot receive the JobKeeper payment from more than one employer.

Payment process

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.

Timing

The subsidy will start on 30 March 2020, with the first payments to be received by employers in the first week of May.

How to apply

You will be able to enrol in the JobKeeper scheme from 20 April 2020 using an online form on the ATO website. After you enrol, you will later identify your specific eligible employees and submit the information to the ATO.

OR Get in touch with any of our team members at Tax Purpose to get you enrolled with the Job Keeper Payment.