31 Mar Federal Government JobKeeper announcement
Under the JobKeeper Payment announced by the Federal Government, businesses significantly impacted by the Coronavirus outbreak will be able to access a subsidy from the Government to continue paying their employees.
This assistance is designed to help businesses to keep people in their jobs and re-start when the crisis is over.
Key points:
The JobKeeper Payment is a subsidy to businesses, which will keep more Australians in jobs through the course of the coronavirus outbreak.
The payment will be paid to employers, for up to six months, for each eligible employee that was on their books on 1 March 2020 and is retained or continues to be engaged by that employer.
Where a business has stood down employees since 1 March, the payment will help them maintain connection with their employees.
Employers will receive a payment of $1,500 per fortnight per eligible employee. Every eligible employee must receive at least $1,500 per fortnight from this business, before tax.
The program will commence today, 30 March 2020, with the first payments to be received by eligible businesses in the first week of May as monthly arrears from the Australian Taxation Office. Eligible businesses can begin distributing the JobKeeper payment immediately and will be reimbursed from the first week of May.
Eligible employers will be those with annual turnover of less than $1 billion who self-assess that have a reduction in revenue of 30 per cent or more, since 1 March 2020 over a minimum one-month period.
Employers with an annual turnover of $1 billion or more would be required to demonstrate a reduction in revenue of 50 per cent or more to be eligible. Businesses subject to the Major Bank Levy will not be eligible.
Eligible employers include businesses structured through companies, partnerships, trusts and sole traders. Not for profit entities, including charities, will also be eligible.
Full time and part time employees, including stood down employees, would be eligible to receive the JobKeeper Payment. Where a casual employee has been with their employer for at least the previous 12 months they will also be eligible for the Payment. An employee will only be eligible to receive this payment from one employer.
Eligible employees include Australian residents, New Zealand citizens in Australia who hold a subclass 444 special category visa, and migrants who are eligible for JobSeeker Payment or Youth Allowance (Other).
Self-employed individuals are also eligible to receive the JobKeeper Payment.
Eligible businesses can apply for the payment online and are able to register their interest via https://www.ato.gov.au/general/gen/JobKeeper-payment/ato.gov.au
JobKeeper Payment information: View the factsheet at https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet_supporting_businesses_1.pdf or read the Prime Minister and Treasurer’s Media Statement at https://www.pm.gov.au/media/130-billion-jobkeeper-payment-keep-australians-job
Employer information: Employers must elect to participate in the scheme. You can do this at: https://www.ato.gov.au/general/gen/JobKeeper-payment/. To view a factsheet on eligibility and the application process, visit https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet_Info_for_Employers_0.pdf
Employee information: A factsheet for employees is available at https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet_Info_for_Employees_0.pdf