Today the Australian Government announced a $130B package to assist Australian Businesses with paying their staff. There is still a
lot of information to come on this announcement but the key points are listed below:
Eligible Employers
- Business are legally required to keep employees on their books to be entitled to the allowance
-
Business applying for the allowance will have to prove that they have suffered a reduction in sales of at least 30% and 50%
for those with a turnover greater than $1 Billion
- The Business is not subject to a Major Bank Levy
- Not-for-profits (charities) and self-employed individuals (sole traders) that meet the turnover tests are eligible
- Please note the JobKeeper subsidy is taxable income for the employer
Eligible Employees
-
The allowance will be available for full-time workers, part-time workers, sole traders and long-term casual workers who
have been with their employer for 12 months of more
- Long-term casual works are there that have been employed on a regular basis for longer than 12 months
- Employees must be at least 16 years of ages
- Workers will need to have been employed before 1 March 2020 to be eligible
-
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
- New Zealanders living in Australia on 444 visas will be eligible for the payment through their employers
- Are not in receipt of a JobKeeper Payment from another employer
Payment Process
- Up to $1,500 (before tax) per fortnight payment for each employee that is not means tested
- Employers can top-up the payment
-
If an employee ordinarily receives $1,500 or more in income per fortnight before tax, they will continue to receive their regular income
according to their prevailing workplace arrangements. The JobKeeper Payment will assist their employer to continue operating by subsidising
all or part of the income of their employee(s).
-
If an employee ordinarily receives less than $1,500 in income per fortnight before tax, their employer must pay their employee, at a
minimum, $1,500 per fortnight, before tax.
- If an employee has been stood down, their employer must pay their employee, at a minimum, $1,500 per fortnight, before tax.
Timing
- To be paid from the first week of 1 May 2020
- Payments will be back dated to 30 March 2020
How to Apply
The allowance will be managed through the ATO so you won't have to register with another government agency. You can register your
interest for the payment to keep up to date using the following link: https://www.ato.gov.au/general/gen/JobKeeper-payment/.
Information required for Businesses with employees includes: employee details and monthly updates
Information required for Businesses without employees includes: ABN, nomination of an individual to receive the payment, individuals TFN and
declaration of recent business activity
