- Posted by BWA Accountants
JobKeeper Payment - Information for Employers and Employees
Today the Federal Government opens applications for the much anticipated Jobkeeper Payment. The subsidy will operate as a reimbursement to employers of $1500 per fortnight for wages paid to their employees between 30th March 2020 and 27th September 2020. Jobkeeper payments to employers will commence from the first week of May, and will be paid monthly in arrears.
Eligibility for the Jobkeeper Payment first starts at the employer level. The key criteria are as follows :
- the business has a turnover of less than $1 billion and its turnover will be reduced by more than 30 per cent relative to a comparable period a year ago (of at least a month); or
- the business has a turnover of $1 billion or more and its turnover will be reduced by more than 50 per cent relative to a comparable period a year ago (of at least a month);
- the business is a registered charity and its turnover will be reduced by more than 15 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.
As an Employer, what do I need to do?
You must self-assess your eligibility with respect to your fall in turnover.
To work out your fall in turnover, you can compare either :
- GST turnover for March 2020 with GST turnover for March 2019
- Forecast GST turnover for April 2020 with GST turnover for April 2019
- Forecast GST turnover for the quarter starting April 2020 and ending 30th June 2020 with GST turnover for the quarter starting April 2019 and ending 30th June 2019
You only need to satisfy the fall in turnover requirement once. You are not required to re-test over the course of receiving the Jobkeeper Payment.
If you do not qualify based on these measures, for example if your business has not been operating for one year, then you may apply to the Commissioner of Taxation to use discretion under alternative measures.
If you qualify under the fall in turnover test, you then need to assess who your eligible employees are. Your employees are eligible if they are :
- Employed by you (including those stood down or re-hired)
- Permanent full-time or part-time employees as at 1st March 2020
- Long-Term casual employee (employed on a regular basis for at least 12 months) as at 1st March 2020 and not a permanent employee of another employer
- At least 16 years old as at 1st March 2020
- Australian resident as at 1st March 2020
- Agree to be nominating by you. Please see ATO Employee Nomination Form
Business owners who are actively engaged in their business can also qualify for the Jobkeeper payment. This is limited to one entitlement per entity, even if there are multiple business owners. For companies, that means one shareholder/director. For trusts, one adult beneficiary. For partnerships, only one partner.
If you are eligible then you must register your intent to apply for the Jobkeeper Payment via the ATO Website or the ATO Business Portal. Alternatively, BWA can assist you in assessing your eligibility and registration. If you would like our assistance, please use the link below.
For more information on the Jobkeeper Payment for Employers please visit the
ATO Website or read the Treasury Factsheet.
I am an eligible Employee, what do I need to do?
If your employer is eligible and intends to register for the Jobkeeper Payment they will need to notify you. The payment will come directly from your employer, who is then later reimbursed by the ATO. Tax will be withheld from the $1500 subsidy.
If you meet the eligibility criteria speak to your employer, notifying them you would like to receive the payment using the official form
. If you have multiple jobs you are only able to choose one employer, notify your other employers that you have nominated a different employer to make this claim.
For more information on the Jobkeeper Payment for Employees please visit the ATO Website
or read the Treasury Factsheet
Changes to the Fair Work Act
There have been temporary changes made to the Fair Work Act which allow for employers eligible for the JobKeeper payments to impose liabilities on working arrangements. The areas these apply to include, standing down employees, work duties, location of work, days worked and paid annual leave. For a more information on these changes please visit the Fair Work website here
For any questions please contact firstname.lastname@example.org