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Jobkeeper payments

GOVERNMENT ANNOUNCEMENT – JOBKEEPER PAYMENTS

The latest Government stimulus announcement is aimed at supporting employers to retain and continue paying their employees during these uncertain times.

The announcement commencing 30 March 2020, revealed the government will fund eligible businesses a $1,500 (Before Tax) subsidy for each eligible employee per fortnight. The program will be administered through the ATO and run for a maximum period of 6 months.

The reimbursements to businesses will be in arrears, and will commence from 1 May 2020 back dated to 30 March 2020. Businesses will need to fund a month of payments to their employees, before the reimbursements commence by ATO. 

 

Eligible Employers:

  • Businesses with less than $1 billion in turnover, and their turnover is reduced by 30 % compared with a period a year ago, (of at least one  month)

  • Businesses with greater than $1 billion in turnover, and their turnover is reduced by 50% compared with a period a year ago, (of at least one month)

  • Businesses not subject to the Bank Levy

Employers must have been in an employment relationship with eligible employees at 1 March 2020.

Not for profit entities, charities and self-employed individuals will also be eligible, should they meet the turnover tests. People that are self-employed will need to provide an ABN for their business, nominate an individual, including their TFN, to receive the payment and provide a declaration as to recent business activity.

It will be upto the employer to decide if they want to pay superannuation on the additional wages paid due to the JobKeeper payment.

 
Eligible Employees:
  • 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, holder of a permanent visa, and certain Visa Categories
  • Are not in receipt of a JobKeeper payment from another employee
The announcement has not been legislated by the government as yet. Further guidance will be required to clarify some issues, such as, the calculation of the Turnover reduction for eligible businesses.
 
How to Register:

For initial registration to the program with the ATO, businesses will need to register an intention to claim at the following link:  https://www.ato.gov.au/general/gen/JobKeeper-payment/

 

Please refer to the attached Fact Sheet for more detail, and examples.

 
Important: Clients should not act solely on the basis of the material contained in Client Alert. Items herein are general comments only and do not constitute or convey advice per se. Also changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. Client Alert is issued as a helpful guide to clients and for their private information. Therefore it should be regarded as confidential and not be made available to any person without our prior approval.