The federal government has introduced a JobKeeper Payment scheme to support businesses significantly affected by Coronavirus.

Eligible employers will be reimbursed $1,500.00 per fortnight for each eligible employee.

Who is an Eligible Employer?

An employer is an eligible employer if all of the following factors apply:

• on 1 March 2020, the employer carried on a business in Australia or was a not for profit organization that pursued its objectives principally in Australia (“the Business”);
• the employer employed at least 1 eligible employee on 1 March 2020;
• the eligible employees (or any one of them), including those employees who have been stood down or have been re-hired, are currently employed by the employer;
• the 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).
• the Business is not
  • a bank
  • an Australian government agency
  • a local governing body;
  • an entity that is wholly owned by an Australian government agency or a local governing body;
  • a sovereign entity;
  • a company in liquidation;
  • an individual who has entered into bankruptcy.

How is the fall in turnover calculated?

To calculate the Business’s 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; or
• projected GST turnover for the quarter starting April 2020 with GST turnover for the quarter starting April 2019.

The Commissioner of Taxation also has the discretion to set out alternative tests that can establish the Business’s fall in turnover and eligibility.

Who is an eligible employee?

An employee is an eligible employee under the JobKeeper Payment scheme if they:

• are employed by the eligible employer (including those employees that have been 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;
• were not in receipt of parental leave or Dad an partner pay or workers compensation during the JobKeeper fortnight
• agree to be nominated by you.

If you have terminated an employee after 1 March 2020, you can re-engage them and they will be eligible if they met the eligibility criteria on 1 March 2020.

What Next

If the Business meets the eligibility criteria and you want to start claiming the JobKeeper payment on behalf of your employees:

• you can register your interest via https://www.ato.gov.au/Job-keeper-payment/;
• you need to start paying your employees at least $1,500.00 per fortnight (before tax) and continue to pay them for as long as you keep claiming;
• you will need to ask your employees to complete the JobKeeper employee nomination notice and return it to you. You are required to leep this form as part of your record keeping obligations;
• from 20 April 2020 onwards you will be able to enrol for the JobKeeper payment.

Contact Us on 1300 830 830 if you have any queries in relation to the operation of your business during the COVID-19 pandemic. 

Disclaimer

The information in this article is general in nature and is not intended to address the circumstances of any person or other entity. Although we do our best to provide timely and accurate information, we do not guarantee that the information in this article is accurate or that it will continue to be accurate in the future.