JobKeeper Payment for Employers and Employees

Keeping your employees.

The government is providing a wage subsidy of $1500 per employee, per fortnight to eligible businesses for up to 6 months. Businesses who have been significantly impacted by the Coronavirus pandemic will be eligible to receive payments, starting from the first week of May 2020.

The government has announced a new stimulus package that aims to keep people in their jobs. The JobKeeper payment will support businesses significantly impacted by by the Coronavirus pandemic by subsidising employee wages for up to 6 months. Employers will receive $1500 a fortnight per eligible employee with the mandate that is payment is passed on in full to the employee. The payment is also open to the self-employed who meet the eligibility requirements.

The JobKeeper payment will help to maintain the employer-employee connection, reducing the need to rehire when business can resume as normal. Payments will be made to the employers in arrears, each month. If employers do not continue to pay employees, they will cease to be eligible for the JobKeeper payment.

Eligible Employers

Businesses will be eligible if:

  • their business has a turnover of less than $1 billion and their turnover will be reduced by more than 30 per cent relative to a comparable period a year ago (of at least a month), or
  • their business has a turnover of $1 billion or more and their turnover will be reduced by more than 50 per cent relative to a comparable period a year ago (of at least a month), and
  • the business is not subject to the Major Bank Levy
  • Business is an ACNC-registered charities other than universities and schools that have experienced a 15% or more drop in turnover.
  • The employer must have been in an employment relationship with eligible employees as at 1 March 2020, and confirm that each eligible employee is currently engaged in order to receive JobKeeper Payments.
  • Not-for-profit entities (including charities) and self-employed individuals (businesses without employees) that meet the turnover tests that apply for businesses are eligible to apply for JobKeeper Payments.
  • Businesses without employees such as self-employed who meet the above criteria will also be eligible to receive the subsidy.
  • The business is not in one of the ineligible categories.

Eligible Employees

Employee are eligible who:

  • are currently employed by the eligible employer (including those stood down or re-hired);
  • were employed by the employer at 1 March 2020
  • are full-time, part-time, or long-term casuals (a casual employed on a regular basis for longer than 12 months as at 1 March 2020)
  • are at least 16 years of age
  • are an Australian citizen, the holder of a permanent visa, a Protected Special Category Visa Holder, a non-protected Special Category Visa Holder who has been residing continually in Australia for 10 years or more, or a Special Category (Subclass 444) Visa Holder
  • are not in receipt of a JobKeeper Payment from another employer.
  • From May 11, 16 and 17 year old employees must have been independent or not studying full time from March 1.

If your employees receive the JobKeeper Payment, this may affect their eligibility for payments from Services Australia as they must report their JobKeeper Payment as income.

Timing

Employers are to receive the first payments during the first week of May. Businesses will be able to register their interest to receive payments from March 30, 2020.

The deadline for enrolling in the JobKeeper scheme has been extended till 31 May 2020.

Payments will be made until 27 September 2020.

How to Apply

Initially, employers and those who are self-employed can register their interest in applying for the JobKeeper Payment via The Australian Taxation Office (ATO) from 30 March 2020.

Eligible employers will receive payments until 27 September 2020.

Subsequently, eligible employers/self-employed will be able to apply for the scheme by means of an online application.

Payment Process

Eligible businesses will be paid $1,500 per fortnight per eligible employee. Eligible employees will receive, at a minimum, $1,500 per fortnight, before tax, and employers are able to top-up the payment.

Where employers participate in the scheme, their employees will receive this payment as follows.

  • If an employee ordinarily receives $1,500 or more in income per fortnight before tax, they will continue to receive their regular income according to their prevailing workplace arrangements. 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 1 March 2020, subsequently ceased employment with their employer, and then has been re-engaged by the same eligible employer, the employee will receive, at a minimum, $1,500 per fortnight, before tax.

It will be up to the employer if they want to pay superannuation on any additional wage paid because of the JobKeeper Payment.

Payments will be made to the employer monthly in arrears by the ATO and employers must provide monthly updates.

 

FAQs

The JobKeeper payment is a subsidy provided to employers to continue to pay their employees. Each eligible business will receive $1500 per fortnight, per eligible employee for up to 6 months. This payment must be passed on in full.

Employers will be eligible for the JobKeeper payment if:

  • their business has a turnover of less than $1 billion and their turnover will be reduced by more than 30 per cent relative to a comparable period a year ago (of at least a month), or
  • their business has a turnover of $1 billion or more and their turnover will be reduced by more than 50 per cent relative to a comparable period a year ago (of at least a month), and
  • the business is not subject to the Major Bank Levy
  • The employer must have been in an employment relationship with eligible employees as at 1 March 2020, and confirm that each eligible employee is currently engaged in order to receive JobKeeper Payments.
  • Not-for-profit entities (including charities) and self-employed individuals (businesses without employees) that meet the turnover tests that apply for businesses are eligible to apply for JobKeeper Payments.

Employees will be eligible who:

  • are currently employed by the eligible employer (including those stood down or re-hired);
  • were employed by the employer at 1 March 2020
  • are full-time, part-time, or long-term casuals (a casual employed on a regular basis for longer than 12 months as at 1 March 2020)
  • Last updated: 30 March 2020 2
  • are at least 16 years of age
  • are an Australian citizen, the holder of a permanent visa, a Protected Special Category Visa Holder, a non-protected Special Category Visa Holder who has been residing continually in Australia for 10 years or more, or a Special Category (Subclass 444) Visa Holder
  • are not in receipt of a JobKeeper Payment from another employer.

Businesses without employees such as self employed will also be eligible for the JobKeeper payment who meet the above criteria.

Initially, employers and those who are self-employed can register their interest in applying for the JobKeeper Payment via The Australian Taxation Office (ATO) from 30 March 2020.

Subsequently, eligible employers/self-employed will be able to apply for the scheme by means of an online application.

JobKeeper Payment for Employers and Employees - Frequently Asked Questions(FAQ)

What is the JobKeeper payment?

The JobKeeper payment is a subsidy provided to employers to continue to pay their employees. Each eligible business will receive $1500 per fortnight, per eligible employee for up to 6 months. This payment must be passed on in full.

Who is eligible for the JobKeeper payment?

Employers will be eligible for the JobKeeper payment if:

  • their business has a turnover of less than $1 billion and their turnover will be reduced by more than 30 per cent relative to a comparable period a year ago (of at least a month), or
  • their business has a turnover of $1 billion or more and their turnover will be reduced by more than 50 per cent relative to a comparable period a year ago (of at least a month), and
  • the business is not subject to the Major Bank Levy
  • The employer must have been in an employment relationship with eligible employees as at 1 March 2020, and confirm that each eligible employee is currently engaged in order to receive JobKeeper Payments.
  • Not-for-profit entities (including charities) and self-employed individuals (businesses without employees) that meet the turnover tests that apply for businesses are eligible to apply for JobKeeper Payments.

Employees will be eligible who:

  • are currently employed by the eligible employer (including those stood down or re-hired);
  • were employed by the employer at 1 March 2020
  • are full-time, part-time, or long-term casuals (a casual employed on a regular basis for longer than 12 months as at 1 March 2020)
  • Last updated: 30 March 2020 2
  • are at least 16 years of age
  • are an Australian citizen, the holder of a permanent visa, a Protected Special Category Visa Holder, a non-protected Special Category Visa Holder who has been residing continually in Australia for 10 years or more, or a Special Category (Subclass 444) Visa Holder
  • are not in receipt of a JobKeeper Payment from another employer.

Businesses without employees such as self employed will also be eligible for the JobKeeper payment who meet the above criteria.

How do I apply for the JobKeeper payment?

Initially, employers and those who are self-employed can register their interest in applying for the JobKeeper Payment via The Australian Taxation Office (ATO) from 30 March 2020.

Subsequently, eligible employers/self-employed will be able to apply for the scheme by means of an online application.

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