What is it?
The jobKeeper payment is the latest Federal Government initiative to provide a cash subsidy to small and big business to assist in paying employees wages.
Does my business qualify for the jobKeeper payment?
Your business will qualify for the payment if it satisfies all of the following conditions:
Your business turnover is less than $1 Billion.
Your business turnover must have reduced by more than 30% relative to a comparable period a year ago (of at least a month).
Your business had “eligible employees” as at 1st March, 2020.
How much cash do I get and for how long?
All jobKeeper payments are paid direct to employers.
Employers will be able to claim a fortnightly payment of $1,500 per fortnight for each “eligible employee”.
The eligible payment period starts from the 30th March, 2020.
The maximum payment period will be 6 months in duration.
When will the payments start?
Payments are due to be received by employers in the first week of May.
Who is an “Eligible Employee”
Current full time and part time employees and they were employed as at 1st March, 2020 (including those stood down or re-hired).
Current casual employees and they were employed as at 1st March, 2020 and has been employed for a period of greater than 12 months. (including those stood down or re-hired).
An employee that is at least 16 years of age.
An Australian citizen but also applies to a number of other visa type arrangements.
The jobKeeper payment is only available from one employer where an employee has multiple employment positions.
How do I apply for the JobKeeper payment and what are my obligations as the Employer?
You can register your interest in applying for jobKeeper payments via the ATO website at ato.gov.au and then complete the online application.
You will need to notify the ATO as to who are your “eligible employees” and then keep the ATO regularly updated of any changes in your business circumstances.
You will be also be obligated to notify “eligible employees” of their jobKeeper entitlements.
Not for profit entities and the self-employed will also be eligible to apply for jobKeeper payments.
The jobKeeper payment incentive is hot off the press today and further announcements from Treasury regarding other aspects of its implementation should be expected over the next few days.
Examples of how the JobKeeper payment applies to business and their employees can be found at the following link to the Australian Governments Treasury Website:
Mark Wilson | Principal
Strategic Accountants & Business Advisors | A division of Strategic Wealth Services