Is the JobSeeker Payment Taxable?
If you are looking to apply for JobSeeker and are wondering whether it is taxable, here’s some information to guide you.
Who qualifies for JobSeeker?
JobSeeker was created to help employees who have been dismissed as a result of the COVID-19 crisis. Other people who can apply for JobSeeker include self-employed, casual and contract workers, as well as sole traders who meet the income test.
Those who are sick, injured or unable to work or study for a limited amount of time can also apply, as well as those who are looking after someone who is COVID-19 positive.
You also need to meet the following additional eligibility criteria:
- You are between 22 and 66 years of age.
- Your income and assets meet test limits.
- You satisfy residency rules.
Those who qualify for the JobSeeker payment scheme can receive an amount ranging anywhere from $565.70 to $790.10 a fortnight, depending on your income.
To keep receiving JobSeeker payments and avoid penalties, you need to report your income every fortnight and agree to a job scheme that entails studying, training or applying for work. Non-adherence to these requirements can mean repayments of incorrectly received amounts, as well as other penalties.
Tax implications of JobSeeker payments
Payments received through the JobSeeker programme are taxable.
If you’re unsure about how to proceed or have more questions regarding JobSeeker, please contact Alliance Accounting.