The JobKeeper Packaged Unpacked

On Wednesday the 8th of April the $130 Billion JobKeeper Wage Subsidy Legislation was passed in Federal Parliament. The scheme keeps more Australians in jobs while supporting business who have been significantly impacting by the Coronavirus.

What is JobKeeper?

JobKeeper is a new Federal Government wage subsidy payment that will allow eligible employers to access a subsidy to continue to employ and pay their employees. The JobKeeper Payment allows eligible employed to claim a fortnightly payment of $1,500 before tax for each eligible employee.

The first payments to eligible employers will commence in the first week of May 2020 (but may take up to two weeks after this date). JobKeeper payments can be made for the period beginning 30 March 2020.

Employees must elect to participate in the scheme and can join it at any time. The employer must pay the employee the full $1500 before tax, if failed to do so, the business owner will face penalties.

Employer Eligibility Criteria

JobKeeper is open for eligible employers, sole traders and other entities.

Eligible employers are businesses carrying on business in Australia (including companies, partnerships, trusts, sole traders, partnerships, unincorporated associations and individuals) and not for profits:

  • with an aggregated turnover of less than $1 billion (for income tax purposes) whose turnover has fallen or will likely fall by more than 30 per cent (within at least one month); OR
  • With an aggregated turnover of $1 billion or more (for income tax purposes) whose turnover has fallen or will likely fall by more than 50 per cent (within at least one month).

Registered charities with the Australian Charities and Not-for-Profits Commission (excluding universities and non-government schools) are eligible employers if they estimate their turnover has fallen or will likely fall by more than 15 per cent (within one month).

A business ONLY needs to satisfy the applicable fall in turnover test once – employers do not need to retest turnover each month.

How to enroll?

You can enroll for the JobKeeper payment through the ATO’s Business Portal. If you are a sole trader, you can enroll on ATO Online Services using myGov, or through a registered tax agent.

Click here for detailed information on how to enroll for JobKeeper.

How to prepare to enroll

  • Check to see if your business or not-for-profit organization meets the eligibility requirements, including turnover test.
  • Check your employees meet the eligibility requirements and for which JobKeeper fortnights.
  • If you are a director or a shareholder of a company, a partner in a partnership, or an adult beneficiary of a trust, consider whether you will nominate as an eligible business participant and check you meet the eligibility requirements.
  • Re-hire or re-engage employees you let go or stood down as well as pay them if you want to claim the JobKeeper payment for them.
  • Notify all eligible employees that you intent to claim the JobKeeper payment on their behalf and check they aren’t claiming the JobKeeper payment through another employer or business.
  • Send JobKeeper Employee Nomination notice to all nominated employees to complete and return to you.

Hoteliers are being encouraged to investigate if they are eligible for the JobKeeper scheme.

Click here, to visit the ATO Website

Click here, to view AHA & TAA (Vic) JobKeeper advice, updates, FAQ’s and relevant documentation.

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