The government has introduced a $130 billion JobKeeper Payment scheme to support businesses significantly affected by the coronavirus to help keep more Australians in jobs.
The JobKeeper payment is open to eligible employers to enable them to pay their eligible employee’s salary or wages of at least $1,500 (before tax) per fortnight.
Eligible employers will be reimbursed a fixed amount of $1,500 per fortnight for each eligible employee.
Employers will need to pay eligible employees a minimum of $1,500 (before tax) per fortnight to claim the JobKeeper payment. This will be paid to the employer in arrears each month by us. The first payments to eligible employers will commence in the first week of May 2020. JobKeeper payments can be made for the period beginning 30 March 2020.
If employers do not continue to pay their employees for each pay period, they will cease to qualify for the JobKeeper payment.
Employers will be eligible for the JobKeeper payment if all of the following apply:
On 1 March 2020, you carried on a business in Australia or were a not-for-profit organisation that pursued your objectives principally in Australia.
You employed at least one eligible employee on 1 March 2020.
Your eligible employees are currently employed by your business for the fortnights you claim for (including those who are stood down or re-hired).
Your business has faced a
30% fall in turnover (for an aggregated turnover of $1 billion or less)
50% fall in turnover (for an aggregated turnover of more than $1 billion), or
15% fall in turnover (for ACNC-registered charities other than universities and schools)
Sole Traders and Business owners actively engaged in their business
Each business will be able to nominate one owner who is not an employee to receive the jobkeeper payment. More information regarding eligibility will be released soon.
How to calculate a fall in turnover for the first fortnight starting 30 March 2020
To work out your fall in turnover, you can compare either:
GST turnover for March 2020 with GST turnover for March 2019
projected GST turnover for April 2020 with GST turnover for April 2019
projected GST turnover for the quarter starting April 2020 with GST turnover for the quarter starting April 2019.
How you choose to project your fall in turnover is not dependent on whether you report a quarterly or monthly BAS, though you can do that if it is easier. The turnover calculation is based on GST turnover, but there are some modifications, including disregarding GST grouping (where two or more associated business entities operate as a single GST group). The ATO will provide more information soon about applying the turnover test.
If you work out that you qualify for the JobKeeper payments for the first fortnight because your turnover has declined by the relevant amount, you remain eligible and do not need to keep testing turnover in following months. However, you will have ongoing monthly reporting requirements. More information will be provided soon.
The Commissioner of Taxation also has the discretion to set out alternative tests that can establish your eligibility when turnover periods are not appropriately comparable (for example, if your business has been in operation less than a year). The ATO will provide more information soon about alternative tests.
Your employee is eligible under the JobKeeper Payment scheme if they:
are employed by you (including those stood down or re-hired)
were either a
permanent full-time or part-time employee at 1 March 2020
long-term casual employee (employed on a regular and systematic basis for at least 12 months) as at 1 March 2020 and not a permanent employee of any other employer
were at least 16 years of age on 1 March 2020
were an Australian resident as at 1 March 2020 within the meaning of the Social Security Act 1991, which requires that they reside in Australia, and are one of an Australian citizen, the holder of a permanent visa, or a Protected Special Category Visa Holder. Your employee can also be an Australian tax resident who is a Special Category (Subclass 444) Visa Holder. Employees who are not permanent residents of Australia must notify you of their visa status to allow you to determine if they are eligible.
were not in receipt of any of these payments during the JobKeeper fortnight
government parental leave or Dad and partner pay
a payment in accordance with Australian worker compensation law for an individual’s total incapacity for work
agree to be nominated by you (see Nominating Employees ).
You cannot claim for any employees who:
were first employed by you after 1 March 2020, or
left your employment before 1 March 2020, or
have been, or have agreed to be, nominated by another employer.
Casual employees are not eligible unless they were employed by you on a regular and systematic basis for at least 12 months as at 1 March 2020.
If your employees have multiple employers, they can usually choose which employer they want to nominate through. However, if your employees are long-term casuals and have other permanent employment, they must choose the permanent employer and cannot nominate you. They cannot receive the JobKeeper payment from more than one employer.
Registration can be done by the employer or their tax agent on their behalf. Can you please contact Elevated Accounting if you would like us to complete and lodge these for you.
Enrolment for the jobkeeper payment can be done from April 20 by employers
The jobkeeper employee nomination notice is available now. It needs to be filled out for each employee who you intend to claim the jobkeeper payment for. These need to be filled out prior to the employer registering for jobkeeper. So if an employer intends to register on April 20 then the employee forms need to be complete by then.
Payments must be made by employers to employees during April to be eligible to claim the jobkeeper payment in May
If an eligible employee usually receives wages of less than $1500 per fortnight they will now receive $1500 per fortnight less tax
Please contact Elevated Accounting on 03 9682 7011 with any questions or for help registering. We are here to help!
Elevated Accounting Team