07 April 2020
COVID-19 - JobKeeper Payments
JobKeeper Payments
Last night the government announced it would be rolling out a support package to employers, called JobKeeper, in a attempt to keep people employed during this time of economic uncertainty.
What we do know at this point:
- Employers will be eligible if they have a turnover of less than $1 billion and their turnover will be decreased by 30%, relative to a comparative period a year ago (of at least a month)
- Eligible employees need to be 16 year or over, and must have been in employment as at 1 March in a full or part-time position or as a long term casual (long term casual means at least 12 months employment)
- Eligible employees can only receive JobKeeper payments from one employer
- Eligible employees must be Australian citizens, permanent residents, or holders of certain visas who have resided in Australia for at least 10 years, including the 444 Visas for NZ citizens
- The first payments will be rolled out in the first week of May, and can be back paid to 30 March
- The payment amounts will be $1,500 per fortnight for each eligible employee
- These payments will form part of the total taxable income for the employee for the year
- If the employee was generally paid less than this per fortnight they will still be paid the full $1,500 in gross wages (i.e. before tax). If the employee was generally paid more than $1,500 per fortnight, the employer can make up the difference, if applicable
- Sole traders and the self-employed can also register their interest to claim JobKeeper payments
- Employers can register an interest in applying for JobKeeper payments on the ATO website from 30 March onwards
We have begun the process of registering the interest of all clients who currently have employees or had employees at 1 March, as well as sole traders, with the ATO for JobKeeper assistance. After this there will be a further application to complete. If you have already registered yourself or your business please let us know.
Please note, not all details have been released as yet, so it is still unclear:
- What reports and information will need to be provided to the ATO to show a 30% drop in turnover
- What period the 30% drop in turnover needs to occur within to be eligible
- If employers will be assessed on profitability each month within the 6 month support period
- Whether an increase in turnover before the end of the 6 months will make you ineligible
- What the application process will involve and how much information will be required by the ATO
As more information is released, we will send out further updates, and will be in touch with all clients who are employers and sole traders to discuss next steps after registration and what details we will need from you to complete your applications.
