Enrol your Business for the Jobkeeper subsidy and receive $1500 per fortnight per employee for next 13 fortnights

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The Federal Government has announced (as part of its Coronavirus Stimulus Package) the introduction of a new JobKeeper Payment to assist eligible employers (and self-employed individuals) who have been impacted by the Coronavirus pandemic to continue to pay their workers.

Under the JobKeeper Payment, businesses and not-for-profits 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 payment of $1,500 per fortnight per eligible employee from 31 March 2020, for a maximum of 6 months

Business With Employees

When is an employer or business eligible for the jobkeeper Payment?

Employers will be eligible for the JobKeeper subsidy where:

  • For a business with a turnover of less than $1 billion – its turnover will be reduced by more
    than 30% relative to a comparable period a year ago (of at least a month); or
  • For a business with a turnover of $1 billion or more – its turnover will be reduced by more than
    50% relative to a comparable period a year ago (of at least a month); and
  • The business is not subject to the Major Bank Levy.
    Self-employed individuals (i.e., businesses without employees) and not-for-profit entities (including
    charities) that satisfy the above requirements will be eligible to apply for the JobKeeper Payment.

Which Employees are eligible for the jobkeeper payment?

You will only be able to claim the JobKeeper payment for eligible employees that were in your employment on 1 March 2020 and continue to be employed while you are claiming the JobKeeper payment.

An eligible employee is an employee who:

  • Is currently employed by the eligible employer (including those stood down or re-hired);
  • Is a full-time or part-time employee, or a casual employed on a regular and systematic basis for longer than 12 months as at 1 March 2020;
  • Was aged 16 years or older at 1 March 2020
  • Was an Australian citizen, the holder of a permanent visa, or a Special Category (Subclass 444) Visa
    Holder at 1 March 2020;
  • Was a resident for Australian tax purposes on 1 March 2020; and
  • Is not in receipt of a JobKeeper Payment from another employer.

These payments should be made using your payroll system and reported to the ATO via Single Touch Payroll. This will support the online claim process when it is available.

If you do not report through Single Touch Payroll, you can still claim the JobKeeper payment; however there will be a manual claim process.

You will be required to advise your employees whether you have nominated them as an eligible employee for the purposes of the payment.

When will the employer receive the First payment?

The First Payment by the ATO will be received by employers in first week of May.

Do the employer has to pay the superannuation on the jobkeeper Payment?

Eligible employees will receive a minimum of $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 JobKeeper Payments.

What are the eligible payment periods for reimbursement for a jobkeeper subsidy?

Employers will need to satisfy payment requirements for their eligible employees in respect of each 14 day period covered by the scheme. The first period starts on Monday 30 March 2020 and ends on Sunday 12 April 2020.

The payment requirement is that they pay their eligible employees a minimum of $1,500 per fortnight in the scheme payment periods. Where an employer pays their staff monthly, the ATO will be able to reallocate payments between periods. However, overall an employee must have received the equivalent of $1,500 per fortnight.

The final period will start on Monday 14 September 2020 and end on Sunday 27 September 2020.

How will employee receive this payment?

Employees will be able to receive this payment in a number of different ways.

  • If your employer pays you $1,500 or more in income per fortnight before tax, the JobKeeper Payment will assist your employer to continue operating by subsidising all or part of your income.
  • If your employer would otherwise pay you less than $1,500 in income per fortnight before tax, your employer must pay
    you, at a minimum, $1,500 per fortnight before tax.
  • If you have been stood down, your employer must pay you, at a minimum, $1,500 per fortnight before tax.
  • You will not be eligible for the JobKeeper payment if you are receiving Parental Leave Pay from Services Australia. However, you will be eligible
  • If you are on parental leave from your employer. If you are receiving workers compensation you will be eligible for the JobKeeper payment if you are working, for example on reduced hours, but will generally not be eligible if you are not working.
  • Further information on the economic response to the Coronavirus is available on the Treasury website at treasury.gov.au/coronavirus.

Businesses without employees

Businesses without employees, such as the self-employed, can register their interest in applying for JobKeeper Payment via ato.gov.au from 30 March 2020.

Businesses without employees 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.

People who are self-employed 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.

To register your interest for the jobkeeper paymet click here. https://www.ato.gov.au/general/gen/jobkeeper-payment/