Wilson & Assoc Chartered Accountants

JobKeeper Payment

Source: Treasury, 30/03/2020

What is it?

JobKeeper payment is the Morrison government’s new $130bn  wage subsidy to keep Australians in work.

Eligible employers will receive $1,500 per fortnight for each eligible worker, for up to 6 months.  About six million workers are estimated to receive this payment.

Who is eligible?

Eligible employers are businesses (including companies, partnerships, trusts and sole traders), not-for-profits and charities:

  • With a turnover of less than $1bn that have lost 30% or more of their revenue compared to a comparable period a year ago.

  • With a turnover of $1bn or more and with at least a 50% reduction in revenue compared to a comparable period a year ago.

Eligible employees:

  • Were employed by an eligible employer at 1 March 2020

  • Can be sole traders, full-time, part-time, or long-term casuals 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, a PR, holder of a protected special visa, or a non-protected special visa having residing in the country for 10 years or more, or a New Zealander with a 444 visa.

How do I access it?

Employers must register their intention to apply on the ATO website (open from March 30).

For most businesses, the ATO will use Single Touch Payroll data to pre-populate the employee details for the business.

What if I was stood down or sacked?

If an employee has been stood down, their employer must pay their employee, at a minimum, $1,500 per fortnight, before tax.

This means that employees of businesses that shut down due to various restrictions – such as cafes, restaurants, theatres, casino workers and the like – will continue to be paid even if they are not working.

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 also receive, at a minimum, $1,500 per fortnight, before tax.

When will it start being paid?

The subsidy will start on 30 March, with the first payments to be received by employers in the first week of May. In the meantime, employers must continue paying their employees and then claim the money from the first week of May.

Eligible employers will need to identify eligible employees for JobKeeper Payments and must provide monthly updates to the ATO.

Participating employers will be required to ensure eligible employees 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.

Further details for businesses for employees will be provided on ato.gov.au.

Businesses without employees

Businesses without employees as in  the self-employed, can also register their interest in applying for JobKeeper Payment via ato.gov.au  They will need to provide an ABN for their business, nominate an individual to receive the payment and provide that individual’s Tax File Number and provide a declaration as to recent business activity.

Self-employers 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.

Further details for the self-employed will be provided on ato.gov.au.

If you have any questions regarding JobKeeper and what it means for you and your business, please contact us.  We will be happy to help.

About Wilson & Assoc

Wilson & Assoc Chartered Accountants provides taxation and business advisory services to individuals, investors and businesses wherever you are based. We provide specialist services to startups and health care providers.

If we can help in any way, we’d like to hear from you.

DISCLAIMER

Information provided on this website is general information only and should not be treated as professional advice.  You may not rely on the basis of currency or accuracy of the information. We disclaim liability to all persons or organisations for any loss or damage suffered as a result of such reliance.  Please ensure you contact us to discuss your particular circumstances and how the information provided applies to your situation.

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