Jobkeeper payments explained
The Government has announced, as part of its economic packages in response to COVID-19, a $130 billion wage subsidy titled ‘Job-Keeper Payments’ to encourage businesses affected by COVID-19 to keep paying salaries to their employees.
The JobKeeper Payment is a temporary scheme open to businesses impacted by the Coronavirus. It will also be available to the self-employed. 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.
Employers are eligible if they show:
They have a turnover of less than $1 billion and turnover will be reduced by more than 30 per cent relative to a comparable period a year ago (of at least a month); or
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.
While many of the details are yet to be worked out the Government has released a fact sheet which states that employers 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 the JobKeeper Payments.
The ATO have also created a link on their website to register an intention to apply.
As further information is released by the Government we will keep you updated.
Disclaimer: The advice provided in this article is general advice only. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this advice you should consider the appropriateness of the advice, having regard to your own objectives, financial situation and needs. We encourage you to consult a finance professional before acting on any advice provided in this article or on this website.
