Under the JobKeeper Payment, businesses impacted by the Coronavirus will be able to access a wage subsidy from the Government to continue paying their employees.

Affected employers will be able to claim a fortnightly payment of $1,500 (before tax) per eligible employee from 30 March 2020, for a maximum of 6 months until 27 Sep 2020.

Eligible employers

  • Their business has an aggregated turnover of less than $1 billion (for income tax purposes1 ) and they estimate their turnover has fallen or will likely fall by 30 per cent or more
  • Their business has an annual turnover of $1 billion or more (for income tax purposes) and they estimate their turnover has fallen or will likely fall by 50 per cent or more;
  • For charities registered with the Australian Charities and Not-for-profits Commission (ACNC), they will be eligible for the subsidy if they estimate their turnover has or will likely fall by 15 per cent or more relative to a comparable period.

Where a business was not in operation a year earlier, or where their turnover a year earlier was not representative of their usual or average turnover, the Tax Commissioner will have discretion to consider additional information that the business can provide to establish that they have been significantly affected by the impacts of the Coronavirus.

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 and systemic basis for longer than 12 months as at 1 March 2020);
  • Are a permanent employee of the employer, or if a long-term casual employee, not a permanent employee of any other employer;
  • Are at least 16 years of age at 1 March 2020;
  • Are an Australian citizen, the holder of a permanent visa, or a Special Category (Subclass 444) Visa Holder at 1 March 2020;
  • Were a resident for Australian tax purposes on 1 March 2020; and
  • Are not in receipt of a JobKeeper Payment from another employer.

How will it work?

  • Register interest with ATO
    https://www.ato.gov.au/general/gen/JobKeeper-payment/?=redirected_JobKeeper
  • Provide information to the ATO on all eligible employees.
    This includes information on the eligible employees engaged as at 1 March 2020 and those currently employed. An employer that elects to participate is required to include all eligible employees in the scheme.
  • Ensure that each eligible employee receives at least $1,500 per fortnight (before tax).
    Employees who receive $1,500 per fortnight or more from their employer will continue to receive their regular income according to their prevailing workplace arrangements.
    For employees that have been receiving less than this amount, the employer will now need to pay them, 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.
  • Notify all eligible employees that they are receiving the JobKeeper Payment.
    Employees that have multiple employers must notify the employer that is their primary employer.
  • Continue to provide information to the ATO on a monthly basis, including the number of eligible employees employed by the business.
  • Receives wage subsidy payment monthly in arrears from the ATO.
    The first payment in the 1st week of May