The JobKeeper payment has been announced to help employers keep paying their employees, during the downturn in business due to the coronavirus. Eligible employers will make flat rate payments of $1,500 a fortnight to their employees, and will be reimbursed by the tax office.
This information is current as at 9am AEST Wednesday 1st April 2020. Visit treasury.gov.au/coronavirus for more detail and the latest information.
I am an employee. What does it mean for me?
If your employer is eligible and registers for JobKeeper, you will be able to be paid a minimum payment of $1,500 per fortnight, before tax.
This will apply to full-time and part-time employees and casuals who have been working with the business for at least the last 12 months. This includes stood-down employees.
Eligible employees include Australian citizens, 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.
How much will I be paid?
If you ordinarily receive $1,500 or more in income per fortnight before tax, you will continue to receive your regular income according to the prevailing workplace arrangements. The JobKeeper Payments will subsidise part or all of your income.
If you ordinarily receive less than $1,500 in income per fortnight before tax, your employer must pay you, at a minimum, $1,500 per fortnight, before tax.
If you have been stood down, your employer must pay you, at a minimum, $1,500 per fortnight, before tax.
If you were employed on 1 March 2020, subsequently ceased employment and then were re-engaged by the same eligible employer, you will receive, at a minimum, $1,500 per fortnight, before tax.
What if I have already been let go by my employer?
Now that JobKeeper support has been announced, you should have a conversation with your previous employer about whether they can employ you again.
What if I have already applied for Centrelink payments?
If your employer signs up to the JobKeeper payment, you will need to let Centrelink know about your change of circumstances. You may no longer be eligible for income support from Centrelink as a result of receivng the JobKeeper payment.
I am an employer. What does it mean for me?
If you are eligible for JobKeeper, your business will be able to access a subsidy to continue paying your employees. This will be $1,500 a fortnight per eligible employee from 30 March 2020, for a maximum period of 6 months.
How do I know if my business is eligible?
Employers will be eligible if:
- their business has a turnover of less than $1 billion and their turnover will be reduced by more than 30 per cent relative to a comparable period a year ago (of at least a month); or
- their business has a turnover of $1 billion or more and their turnover will be reduced by more than 50 per cent relative to a comparable period a year ago (of at least a month); and
- the business is not subject to the Major Bank Levy.
The Commissioner will exercise discretion with regard to the exact period which is used to calculate the reduction in turnover, given Townsville’s monsoon flood event last year.
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.
Are not-for-profits and sole traders eligible?
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.
How do I apply?
Visit ato.gov.au/Job-keeper-payment/ and register your interest to receive updates from the Australian Tax Office.
Subsequently, you will be required to provide information on the number of eligible employees engaged as at 1 March 2020 and those currently employed by the business (including those stood down or rehired).
You should ensure that each eligible employee receives at least $1,500 per fortnight before tax, and notify all eligible employees that they are receiving the JobKeeper Payment. The first payment will be received by employers from the Australian Tax Office in the first week of May 2020.
For full details on eligibility and how to access JobSeeker, visit treasury.gov.au/coronavirus.