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02 June 2020

JobKeeper FAQ

Your JobKeeper questions answered

How often will JobKeeper be paid by the ATO?

JobKeeper payments will be paid to employers and sole traders once per month, in arrears for the previous month, i.e. the June payment will cover the period 27 April to 24 May. Each payment will cover a 4 week period, except for the September payment, which will cover 6 weeks. 

How long does JobKeeper go for?

JobKeeper will cover the 6 month period from 30 March up to 27 September, with the final payment to be made to businesses by the ATO in October 2020.

What do I need to report to the ATO for JobKeeper?

One of the requirements for JobKeeper is a monthly reporting of sales turnover for the past month and an estimate of turnover for the coming month. This information must be lodged with the ATO by the 14th of each month in order for that month's payment to be processed.
If you are an employer, you also need to confirm the number of employees you are claiming JobKeeper for. This is in case any eligible employees leave your employ before JobKeeper ends. 

Do I need to pay staff in advance?

The ATO has specified that you should pay all eligible employees at least $1,500 gross (before tax) per fortnight in line with your existing pay cycle, in advance of receiving the monthly JobKeeper payments. For some businesses, particularly those that have had to stop trading due to government distancing requirements, this may not be feasible. You may be able to borrow funds based on the expected JobKeeper payments to help cover staff wages. 
All staff that you are claiming JobKeeper for must be paid the minimum $1,500 gross (before tax) per fortnight, even if the staff member earns less than that amount per fortnight. 

What if my sales increase while I'm receiving JobKeeper?

If you have proven your eligibility for JobKeeper based on a decrease in turnover of 30% or more in one month of 2020, compared to the same month in 2019, you are eligible for the remainder of the JobKeeper payment scheme. If your sales increase in a month or don't continue to remain at 30% less than 2019, this does not affect your eligibility for JobKeeper.
Once you are in the payment program, you will continue to receive JobKeeper until it ends in September. 
The ATO has stated that the monthly reporting of sales turnover is just for reporting purposes and is not a retest of eligibility each month. 

Do I need to pay super on JobKeeper wages to staff?

The 9.5% super guarantee is only payable in certain circumstances on wages paid during the JobKeeper scheme.
If an employee is working their regular or reduced hours and their fortnightly pay is $1,500 or more per fortnight, then normal 9.5% super needs to be accrued and paid on those wages. 
If an employee is working reduced hours, earning less than $1,500 per fortnight, and getting paid a JobKeeper top up to bring their total wages to $1,500 gross per fortnight; then 9.5% super only needs to be accrued and paid on their actual hours worked, not on the JobKeeper top up portion. 
If an employee has been stood down and is only being paid JobKeeper wages, then no super needs to be accrued or paid on their wages. 
The table below may also assist in clarifying when super is payable: 
 

Circumstance

Payment to staff

Super Payable

Working regular hours & pay is more than $1,500 per fortnight

Paid as regular wage

Yes

Working regular hours & pay is less than $1,500 per fortnight

Paid for regular wage

Plus a top up amount to Jobkeeper total of $1,500/fortnight

Yes

No (discretionary)

Working reduced hours & pay is more than $1,500 per fortnight

Paid for hours worked only

Yes

Working reduced hours & pay is less than $1,500 per fortnight

Paid for hours worked

Plus a top up amount to Jobkeeper total of $1,500/fortnight

Yes

No (discretionary)

Stood down

Paid Jobkeeper amount of $1,500 per fortnight

No (discretionary)

 

Does the ATO provide a notification of payment?

Please note, the ATO will not be issuing any notifications or confirmations of payment for JobKeeper each month. Once the monthly sales turnover is reported to the ATO, your payment will be processed within approximately 5 business days, unless further checks are required by the ATO.
Once we have sent you a confirmation email that we've lodged your monthly sales details with the ATO, we will not be informed when the payment is made, so please keep an eye on your bank account for the JobKeeper deposit. 

Can I apply for JobKeeper later on?

If your sales have not yet dropped by the required 30%, but you expect them to do so in the coming months, you can still enrol for JobKeeper at a later date.
You can enrol any time during the JobKeeper payment scheme, however to claim the JobKeeper payment for a fortnight, you must enrol before the end of that JobKeeper fortnight.
The starting point for your JobKeeper payments will be determined based on when you declared a drop in turnover of 30% or more, e.g. if you state June as the month your sales turnover decreased, your first payment for JobKeeper will be processed in July as reimbursement for June wages. 

I'm not an employer, can I receive JobKeeper?

If you are a sole trader or a business without employees you may still be eligible for JobKeeper, as long as the business meets the other eligibility requirements.
One associated individual per business can claim JobKeeper wages even if they are not usually paid as an employee, e.g. a partner in a partnership, or director or shareholder in a company. The individual must be actively engaged in the business and cannot be an employee of another entity, except as a casual. 

What happens after JobKeeper ends?

The government has indicated that it will conduct a review of the JobKeeper payment scheme in June. This will consider whether the scheme should be extended any further than September, if eligibility requirements will be amended and assess how to target industries most affected by coronavirus. At this stage it looks unlikely that JobKeeper payments will be extended any longer than 27 September.
 
We will keep you updated on any developments or changes to JobKeeper as they are announced by the government.  
 
 

Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current scheme applies.   

 
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