COVID-19: Explainer - JobKeeper $1500 Fortnightly Payment




The Government is introducing a subsidy program to support employees and businesses. The JobKeeper Payment is designed to help businesses affected by the Coronavirus to cover the costs of their employees’ wages, so that more employees can retain their job and continue to earn an income. Keeping Australians in work and businesses in business will lay the foundations for a stronger economic recovery once the Coronavirus crisis passes.

 

JOBKEEPER PAYMENT

Summary

The economic impacts of the Coronavirus pose significant challenges for many businesses – many of which are struggling to retain their employees.


Under the JobKeeper Payment, businesses significantly impacted by the Coronavirus outbreak will be able to access a subsidy from the Government to continue paying their employees. This assistance will help businesses to keep people in their jobs and re-start when the crisis is over. For employees, this means they can keep their job and earn an income – even if their hours have been cut.


The JobKeeper Payment is a temporary scheme open to businesses impacted by the Coronavirus.


The JobKeeper Payment will also be available to the self-employed.


The Government will provide $1,500 per fortnight per employee for up to 6 months.


The JobKeeper Payment will support employers to maintain their connection to their employees.


These connections will enable business to reactivate their operations quickly – without having to rehire staff – when the crisis is over.

 

OBLIGATIONS ON EMPLOYERS


To receive the JobKeeper Payment, employers must:


• Register an intention to apply on the ATO website and assess that they have or will experience the required turnover decline.


• Provide information to the ATO on eligible employees. This includes information on the number of eligible employees engaged as at 1 March 2020 and those currently employed by the business (including those stood down or rehired). For most businesses, the ATO will use Single Touch Payroll data to pre-populate the employee details for the business.


• Ensure that each eligible employee receives at least $1,500 per fortnight (before tax). For employees that were already receiving this amount from the employer then their income will not change. For employees that have been receiving less than this amount, the employer will need to top up the payment to the employee up to $1,500, before tax. And for those employees earning more than this amount, the employer is able to provide them with a top-up.


• Notify all eligible employees that they are receiving the JobKeeper Payment.


• Continue to provide information to the ATO on a monthly basis, including the number of eligible employees employed by the business.


 

BACKGROUND ON JOBKEEPER PAYMENT


Under the JobKeeper Payment, businesses impacted by the Coronavirus will be able to access a subsidy from the Government to continue paying their employees. Affected employers will be able to claim a fortnightly payment of $1,500 per eligible employee from 30 March 2020, for a maximum period of 6 months.

 

ELIGIBLE Employers


Employers will be eligible for the subsidy if:


• their business has a turnover of less than $1 billion and their turnover will be reduced by more than 30 per cent relative to a comparable period a year ago (of at least a month); or


• their business has a turnover of $1 billion or more and their turnover will be reduced by more than 50 per cent relative to a comparable period a year ago (of at least a month); and


• the business is not subject to the Major Bank Levy.


The employer must have been in an employment relationship with eligible employees as at 1 March 2020, and confirm that each eligible employee is currently engaged in order to receive JobKeeper Payments.


Not-for-profit entities (including charities) and self-employed individuals (businesses without employees) that meet the turnover tests that apply for businesses are eligible to apply for JobKeeper Payments.


Eligible Employees


Eligible employees are employees who:


• 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, the holder of a permanent visa, a Protected Special Category Visa Holder, a non-protected Special Category Visa Holder who has been residing continually in Australia for 10 years or more, or a Special Category (Subclass 444) Visa Holder; and


• are not in receipt of a JobKeeper Payment from another employer.


If your employees receive the JobKeeper Payment, this may affect their eligibility for payments from Services Australia as they must report their JobKeeper Payment as income.

 

APPLICATION PROCESS