What is it?
- A wages subsidy to help employers keep employees in a job through difficult trading conditions created by COVID-19.
- It consists of fortnightly payments of $1,500 per eligible employee from 30 March 2020 for a six-month period.
- It requires the employer to apply for the payment.
- Payments will start in the first week of May 2020 but will be backdated to 1 March 2020.
To be eligible as an employer
- Turnover is less than $1 Billion and turnover has dropped by more than 30% relative to the same period last year.
- Turnover is greater than $1 Billion and turnover has dropped by more than 50% relative to same period last year.
- Must have employed at least 1 eligible employee as at 1 March 2020.
- Not subject to Major Bank Levy
- Must be employed by the eligible employer (including those stood down or re-hired under different employment conditions).
- Were employed as at 1 March 2020
- Are employed on a full-time, part-time or long-term casual basis. Long-term casual means they have been employed on a regular basis for 12-months
- Over 16 years of age
- Is an Australian citizen, holds a permanent visa, holds a Protected Special Category visa or holds a Non-Protected Special Category visa and has been residing in Australia for more than 10 years.
- Are not receiving this Job Keeper payment from another employer.
- Were employed on March 1, then were terminated and subsequently re-engaged by the employer. This means that employers who have sacked workers since March 1 can effectively re-hire them and they will qualify for the payment.
How much employees receive
- If an employee normally earns more than $1,500 per fortnight before tax and will continue to do so, then they will they will receive their normal wage and the employer will keep the JobKeeper payment as a subsidy.
- If an employee normally earns less than $1,500 per fortnight before tax, then the employer will top up their wage to $1,500 per fortnight and keep the remainder as a subsidy.
- If an employee has been stood down and is earning nothing, the full $1,500 will be paid to the employee.
- The money will be paid to the employer monthly in arrears. Periodically employers will be required to report to the ATO about payments they have made to their employees.
- It is the employer’s choice as to whether superannuation is paid on the subsidy.
- Your business structure does not impact your eligibility as an employer. Companies, Trusts, Partnerships and Sole Traders all qualify.
- Self-employed individuals (eg: sole traders without employees) who meet all the appropriate employer tests will also qualify to receive for the payment themselves.
How to apply
Follow our Step by Step process to start your application now.
If you have any further questions about this initiative please feel free to contact our office.