The government has announced a support package of $130 billion for businesses, delivered through a wage subsidy called the JobKeeper Payment to help businesses stay in business and keep employees in work as we move through the COVID-19.

I’ll take you through the things you need to know and how you can access the JobKeeper Payment for your business.

How much will you receive as a business

  • The Government will provide $1,500 (before tax) per fortnight per employee for up to 6 months provided that the turnover of the business has decreased by at least 30% and turnover is less than $1 billion, or a 50% decrease if turnover is $1 billion or more. This drop is to be measured versus a comparable period of at least one month, year on year.

What you need to do in order to qualify for the JobKeeper Payment

  • As an employer, you need to make an application to the ATO.
  • As an employer, you will be required to keep the employee or re-employ those already let go, on their books in order to distribute the payment.
  • As an employer, you must include this payment within the employees payroll payment per fortnight, even if they were previously paid less than $1,500 per fortnight. Re-employed employees, who were employed as of 1 March 2020 but have already been let go will qualify for the payment from the date of re-employment.
  • Where your employees have more than one employment, then only one employer can apply for the $1,500, usually guided by the employee’s use of the TFN tax-free threshold with an employer.
  • Employers must report the number of eligible employees employed by the business on a monthly basis. For most businesses, the ATO will use Single Touch Payroll data to pre-populate employee details.

When does the JobKeeper Payment start

  • Payments will start from the first week of May 2020 but will be backdated to 30 March 2020. The payments are planned to be made monthly in arrears. 

Which types of businesses qualify for the JobKeeper Payment

  • The Job Keeper payments to employers will be available for full-time workers, part-time workers, and casual workers employed as at 1 March 2020. Please note, casual workers need to have been with their employer for 12 months or more. Sole traders will also qualify independently for the payment, so long as their turnover has also decreased by 30%

What do I need to do to access the JobKeeper Payment

  • This is being delivered directly by the ATO as a payment to employers and requires an application to be completed on the ATO website. Pre-registration is already open and the ATO is indicating a full application will be communicated once it is ready. Here’s the link to register

Take care everyone and please call me if you would like help with this!

Rose

Partner RBG

Mobile 0405 510 380 or rose@rbgprivate.com