In response to the Government’s JobKeeper Payment announced yesterday, please find below summarised details of payment, eligibility, application process and payment process.
Link to access full Government fact sheets is below:
• Eligible employers will be paid $1,500 per fortnight per eligible employee from 30th March 2020, for a maximum of 6 months;
• Eligible employees will receive from their employers a minimum of $1,500 per fortnight, before tax;
• Employers will pay employees as usual and payments will be made to the employer monthly in arrears by the ATO;
• Payment includes self-employed individuals (i.e. businesses without employees);
• A person receiving the JobKeeper payment cannot also receive the JobSeeker payment (formerly Newstart). People who have already applied for JobSeeker can withdraw and shift to JobKeeper payments if they are re-engaged by their employer. A person cannot be in receipt of JobKeeper payments from two or more employers.
To be eligible for the JobKeeper Payment the following must apply:
• Employer’s turnover must have reduced by more than 30% compared to the same period a year ago (of at least a month);
• Employees must have been employed as at 1st March 2020 and be currently engaged (includes employees stood down or re-hired);
• Employees must be full-time, part-time or long term casuals (i.e. employed on a regular basis for longer than 12 months as at 1st March 2020) and over 16 years of age;
• Payments will begin from the 1st May 2020 and be backdated from the 30th March 2020.
If you believe you meet the above criteria please click the link below and register your interest in applying for the JobKeeper Payment:
Once registered the ATO will contact you when more information is available.
Eligible employers will be able to apply for the payments via an online application. We will provide further details of this application when received including providing proof of decrease in turnover > 30%.
• Employers will need to identify eligible employees and provide monthly updates to the ATO.
• All eligible employees will receive, at a minimum, $1,500 per fortnight, before tax, even if their regular earnings are below this amount.
• Superannuation is not payable on any additional wage paid because of the JobKeeper Payment.
E.g. If an employee normally receives $1,000 per fortnight before tax they will receive the full $1,500 before tax however super is only payable on the normal $1,000 gross.
• Businesses without employees must provide an ABN, nominate an individual to receive the payment, provide that individuals TFN and provide a declaration as to recent business activity;
• Self-employed people will need to provide a monthly update to the ATO to declare their continued eligibility for the payments. Payment will be made monthly to the individual’s bank account.
Eligible employers will be paid $1,500 per fortnight per eligible employee and payments received are 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. The JobKeeper Payment will assist the employer to continue to pay their employees;
• If an employee ordinarily receives less than $1,500 in income per fortnight before tax, their employer must pay them at a minimum $1,500 per fortnight, before tax;
It is therefore possible for an employee to receive more than their ordinary pay
• 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 1st 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.
We understand that this is a difficult time for small business and employers and the details of all the various Government announcements can be complicated.
If you have any queries regarding the above JobKeeper payment or any other Government announcement please do not hesitate to contact our office.
We hope you and your families stay safe.