Last updated 6 April 2020
From 30 March 2020 Australian businesses impacted by COVID-19 who have or expect to experience a decrease in turnover of 30% if your turnover is less than $1 billion, will be eligible for $1,500 per fortnight for each eligible employee payment. Under the JobKeeper Payment, impacted businesses will be able to access the subsidy to continue paying their employees. Employers will be able to claim the fortnightly payment of $1,500 per eligible employee for a maximum period of 6 months.
For a lot of businesses this will allow them to avoid standing employees down and allow them to continue to operate and be better positioned when we are on the other side of COVID-19.
Eligible employers to receive the $1,500 fortnightly payments include:
To establish if a business has either a 30% or 50% reduction in their turnover, most businesses would be expected to establish that their turnover has fallen in the relevant month or three months (depending on the natural activity statement reporting period of that business) relative to their turnover a year earlier. If a business was not operating a year earlier, or where the businesses turnover a year earlier was not representative of their normal or average turnover, the Tax Commissioner will have discretion to consider additional information showing that the business has been significantly affected by the impacts of COVID-19.
The Tax Commissioner will have discretion to establish eligibility in specific circumstances for example, eligibility may be established as soon as a business has ceased or significantly curtailed its operations. The Govt has stated there will be some tolerance where employers, in good faith, estimate a greater than 30% (or 50%) fall in turnover but actually experience a slightly smaller fall.
It is a legal requirement for employer to pass the subsidy onto eligible employees.
If you are eligible or may be, or even if you are uncertain, we encourage businesses to register their business with the ATO using this link: https://bit.ly/3dEXryp
Please note, employees who receive the JobKeeper Payment, will need to report their JobKeeper Payment as income.
Additional information is available
for the JobKeeper Subsidy via the following link: https://bit.ly/3dEXrypThe first payments will be recieved by employers in the first week of May 2020. Businesses will be able to register their interest in participating
- Employees who would normally receive $1,500 or more per fortnight before tax of income, will continue to receive their regular income according to their workplace arrangements. The JobKeeper Payment will assist their employer by subsidising some or all of the income.
- Employees who ordinarily receive less than $1,500 in income each fortnight before tax, their employer must pay their employee, at a minimum, $1,500 per fortnight, before tax.
- Where an employee has been stood down, their employer must pay their employee, at a minimum, $1,500 each fortnight, before tax.
- Where an employee was employed on 1 March 2020, and subsequently ceased employment with their employer, and has since been re-engaged by the same eligible employer, the employee will receive, at a minimum, $1,500 each fortnight, before tax.
It will be at the employers discretion if they will pay superannuation on any additional wage paid because of the JobKeeper Payment. The ATO will make payments to the employer on a monthly in arrears basis.