COVID-19 Stimulus: JobKeeper Payment Update

The JobKeeper stimulus measure passed The Senate late last night, meaning businesses are one step closer to accessing the next round of Government stimulus.

What is the JobKeeper?

It is a payment of $1,500 per fortnight, before tax, per eligible employee paid to the employer, monthly in arrears.

Who is an eligible employer?

Employers, including profit for purpose entities, are eligible for the subsidy if:

• their business has a turnover of less than $1 billion and estimate their turnover has fallen or will likely fall by 30 per cent or more; or

• their business has a turnover of $1 billion or more and estimate their turnover has fallen or will likely fall by 50 per cent or more; or

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

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 fallen or will likely fall by 15 per cent or more relative to a comparable period.

JobKeeper Payments are paid in respect of each eligible employee who was employed at 1 March 2020 and is currently employed by the business (including those who are stood down or re-hired).

Who is an eligible employee?

An eligible employee was in your employment on March 1st, 2020 and will continue to be employed while you are claiming the JobKeeper payment. They also met the following criteria:

• 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.

You can only claim JobKeeper payment for eligible employees if you pay the $1,500 per fortnight (before tax) to each eligible employee.

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.

As an employer, you need to register your interest in the JobKeeper package via the ATO website https://www.ato.gov.au/general/gen/JobKeeper-payment/