- Is my business eligible to receive the Job Keeper Payment?
- What defines an eligible employee?
- I am a self-employed business owner, am I eligible for the Job Keeper Payment?
- I am a casual employee that doesn’t meet the eligibility criteria, what support is available to me?
- Important information (links)
On 30 March 2020, it was announced that the Federal Government would be looking to offer up to $130 billion in wage subsidies for businesses of all sizes (hereafter referred to as the JobKeeper Payment).
Delivered by the Australian Tax Office (ATO), the JobKeeper Payment involves a fortnightly payment to Australian businesses of up to $1500.00 per eligible employee for six months (from 30 March 2020).
All eligible employees will receive the $1,500 (before tax) payment regardless of prior earnings. Businesses will then be able to top up the $1,500 amount to support employees who were previously earning greater than $1,500 per fortnight before the Covid-19 event.
For businesses with turnovers less than $1 billion, who have experienced a 30% reduction in turnover year on year over a comparable period of at least one month will be eligible.
Otherwise, businesses that turnover more than $1 billion must prove that turnover has reduced by more than 50% year on year over a comparable period of at least one month.
To establish that a business or not-for-profit has faced or is likely to face the relevant fall in turnover, most would be expected to establish that their turnover has or will likely fall in the relevant month or quarter (depending on their Business Activity Statement reporting period) relative to their turnover in a corresponding period a year earlier. Businesses that have not yet been adversely impacted, but forecast a significant reduction in turnover will need to contact the ATO directly to apply for the JobKeeper Payment.
Turnover is calculated as it is for GST purposes, and is reported on your Business Activity Statement. It includes all taxable supplies and all GST free supplies.
For some businesses, the Covid-19 pandemic has already forced them to stand down employees by significantly reducing their working hours.
In such cases, for the employee to be eligible, they must have been engaged in employment as at 1 March 2020. The business must also confirm that each eligible employee is still contractually employed to receive the Job Keeper Payment.
Not subject to the major bank levy:
Eligible businesses must not be subject to the major bank levy which applies to banks with over $100 billion in total liabilities.
Eligible employees have been defined as those who:
- Are currently employed by an eligible business (defined above). This includes employees that may have been stood down or re-hired (i.e. actively engaged under a working contract with the business);
- Were employed by the employer as at 1 March 2020;
- Are employed on a full-time, part-time or long-term casual basis (a casual employee that has been employed regularly for longer than 12 months);
- Are at least 16 years of age;
- Are an Australian citizen, holders of a permanent or special visa (see the full list here); and
- Are not in receipt of a Job Keeper Payment from another employer.
Businesses without employees can register their interest in applying for the JobKeeper Payment from 30 March 2020.
In such circumstances, self-employed business owners will need to nominate an individual (provide TFN) to receive the payment.
Casual employees that do not meet eligibility criteria are urged to contact Centrelink to discuss welfare options.
Importantly, for individuals that find themselves cyclically unemployed, the JobSeeker Payment has been nearly doubled to support casual employees during this time of turbidity.
For a full summary of the JobKeeper Payment, visit the Treasury website here.
For general queries regarding the JobKeeper Payment:
For information on free memberships with CCIQ with HR/IR Helpline Support:
- 1300 731 988
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