An announcement has been made by the Morrison Government for additional business assistance on top of previously announced assistance. The JobKeeper payment is designed to help business affected by the Coronavirus to cover the costs of their employee’s wage so that more employees can retain their job and continue to earn an income.
Details of the JobKeeper Payment and who can receive it
Under the JobKeeper payment, businesses significantly impacted by the Coronavirus will be able to access a subsidy from the government to continue paying their employees. Significant impact is defined as where your business sales turnover will be reduced by more than 30 per cent relative to a comparative period a year ago (of at least that month). This assistance will help businesses to keep people in their jobs and re-start when the crisis is over. For employees, this means they can keep their job and earn an income, even if their hours have been cut
The JobKeeper Payment will also be available to the self-employed.
The government will provide $1,500 per fortnight per employee for up to 6 months.
Employers MUST ELECT to participate in the JobKeeper Payment scheme. They will need to make an application to the ATO to provide supporting information demonstrating a downturn in their business. In addition, employers must report the number of eligible employees employed by the business on a monthly basis.
You can register your interest using the following link https://www.ato.gov.au/Job-keeper-payment/
Who is eligible for the JobKeeper Payment?
Eligible employers will receive the payment for:
- Each eligible employee that was on their books on 01 March 2020 and continues to be engaged by that employer
- Eligible employees are:
- long-term casuals who have been with their employer on a regular basis for at least the previous 12 months as at 01 March 2020,
- stood down employees, including those who had been stood down prior to this scheme,
- An employee must be an Australian citizen, permanent visa holder, who has been residing continually in Australia for 10 years or more,
- Previously terminated employees who could be re-hired
- Self Employed and contractors
- Eligible employees are:
Where employees have multiple employers – only one employer will be eligible to receive the payment.
JobKeeper Payment Process
Eligible employers will be paid $1,500 per fortnight per eligible employee.
- If an employee ordinarily receives $1,500 or more in income per fortnight before tax, they will continue to receive their regular income. The JobKeeper payment will assist their employer to continue operating by subsidising all or part of the income of their employee(s)
- If an employee ordinarily receives less than $1,500 in income per fortnight before tax, their employer must pay their employee, at a minimum $1,500 per fortnight before tax
- If an employee has been stood down, their employer must pay their employee, at a minimum $1,500 per fortnight before tax
- If an employee was employed on 01 March 2020, subsequently ceased employment with their employer, and then been re-engaged by the same eligible employer, the employee will receive, at a minimum, $1,500 per fortnight, before tax.
Payments will be made to the employer monthly in arrears by the ATO.
Timing of the Payment
The subsidy will start on 30 March 2020, with the first payments to be received by employers in the first week of May.
Businesses are able to register their interest in participating in the payment from 30 March 2020 on the ATO website using the following link https://www.ato.gov.au/Job-keeper-payment/
The above is in addition to the previously announced measures the government have introduced, as mentioned in our previous correspondence to you.
To recap they are:
- Payments for eligible businesses between $20,000 to $100,000 that employ people
- Asset write off to be increased to $150,000 from $30,000
- Subsidies of 50% of apprentice’s trainee’s wage
- Additional Jobseeker payments to support individuals and households up to $1100 a fortnight if family income is under $79,000
- Early release of superannuation of $10,000 before 30 June 2020 plus an additional $10,000 before September 2020
- 50% Government guaranteed loans of maximum $250,000
If you wish to discuss further, please contact our office. It is advised, that if you believe you qualify for the JobKeeper payments you register your interest as soon as possible using the following link https://www.ato.gov.au/Job-keeper-payment/