Under the JobKeeper Payment, businesses impacted by the Coronavirus will be able to access a subsidy from the Government to continue paying their employees. Affected employers will be able to claim a fortnightly payment of $1,500 per eligible employee from 30 March 2020, for a maximum period of 6 months.
if your employee earns more than $1500 fortnightly than top up will be from employer pocket, however if someone earns less than that he will be paid up $1500 per fortnight. Superannuation will be paid as usual for people earning more than $1500 however for people earning less business has an option of choosing to Pay superannuation.
All employers will Continue to provide information to the ATO on a monthly basis, including the number of eligible employees employed by the business.
Businesses without employees/ Self -Employed
Businesses without employees will need register their interest for Jobkeeper payment from 30 March 2020 via ATO website. They will need to provide an ABN for their business, nominate an individual to receive the payment and provide that individual’s Tax File Number and provide a declaration as to recent business activity.
People who are self-employed will need to provide a monthly update to the ATO to declare their continued eligibility for the payments. Payment will be made monthly to the individual’s bank account.
ELIGIBLE employers:
Employers will be eligible for the subsidy if:
• Their Turnover has or will decline by 30% for business with turnover less than 1 billion -Most Small Business will fall in this Category, if the business turnover is 1 billion or more than the decline has to be 50%. For both cases turnover must be compared to last year similar month or Quarter as applicable.
• The business is not subject to the Major Bank Levy.
• The employer must have been in an employment relationship with eligible employees as at 1 March 2020 and confirm that each eligible employee is currently engaged in order to receive JobKeeper Payments.
• Not-for-profit entities (including charities) and self-employed individuals (businesses without employees) that meet the turnover tests that apply for businesses are eligible to apply for JobKeeper Payments.
Eligible employees:
Eligible employees are employees who:
• Currently employed by the eligible employer (including those stood down or re-hired)
• Employed by the employer at 1 March 2020.
• Full-time, part-time, or long-term casuals
• At least 16 years of age.
• Are an Australian citizen, the holder of a permanent visa, a Protected Special Category Visa Holder, a non-protected Special Category Visa Holder who has been residing continually in Australia for 10 years or more, or a Special Category (Subclass 444) Visa Holder.
• Are not in receipt of a JobKeeper Payment from another employer.
Being an employee, it is your responsibility to declare all income you receive to your employer and service Australia to help them access your eligibility properly.
Employer with employees on different wages
Jobkeeper subsidy is $1500 per fortnight per employee, if your employee earns more than this than top up will be from employer pocket, however if someone earns less than that he will be paid up $1500 per fortnight. Superannuation will be paid as usual for people earning more than $1500 however for people earning less business has an option of choosing to Pay superannuation.
Employer with employees who have been stood down without pay
For businesses which have to close down their doors and their revenue has declined by 30% will be eligible for Jobkeeper Payment of $1500 before tax for each employee up to 6 Months.
Employers will have to advise their employees that they are being nominated as eligible employees & if employees have already started receiving income support payments like the JobSeeker Payment when they receive the JobKeeper Payment, they will need to advise Services Australia of their new income.
APPLICATION PROCESS
All applications will be submitted through ATO website from 30 March 2020,The first payment will be received by employers from the ATO in the first week of May.
(Disclaimer : This message is for general awareness please seek specific advice meeting your own circumstance -Source Australian government fact sheet: ECONOMIC RESPONSE TO THE CORONAVIRUS)
