The government has introduced a $130 billion JobKeeper Payment scheme to support businesses significantly affected by COVID-19 to help keep more Australians in jobs. The JobKeeper payment is open to eligible employers/self employed to enable them to pay their eligible employee’s wages of at least $1,500 (before tax) per fortnight.
- The Self employed will be included in this scheme with some limitations.
- From the 20th April 2020 eligible businesses will be able to enroll in the scheme.
- Eligible employers will be reimbursed a fixed amount of $1,500 per fortnight for each eligible employee.
- Employers will need to pay eligible employees a minimum of $1,500 (before tax) per fortnight to claim the JobKeeper payment (ATO reimburse monthly in arrears).
- The first payments to eligible employers will commence in the first week of May 2020. JobKeeper payments can be made for the period beginning 30 March 2020.
- The scheme will run until until 27 September 2020.
Steps to Enroll:
- Work out if you are an Eligible Employer (see below)
- Identify your eligible employees
- Send the JobKeeper employee nomination notice to your nominated employees to complete and return to you by the end of April
- If you plan to claim JobKeeper payment for April.
- Pay your eligible employees the correct amount each fortnight (the first JobKeeper fortnight is the period from 30 March to 12 April):
- If employee earns less than $1,500 each fortnight top up their payment to this amount
- If employee ears more than $1,500 each fortnight pay in line with their existing pay amounts.
- Enroll with the ATO either via us or through the Business Portal using your myGovID and complete the online form (from 20th April 2020).
- You will be able to indicate if you are claiming an entitlement based on business participation (e.g if you are a sole trader) at this point.
Steps to Apply for Payment:
- Login to the Business Portal each period (from 4 May 2020)
- Ensure you have paid your eligible employees at least $1,500 per fortnight before tax and have received their JobKeeper employee nomination notices.
- Identify eligible employees by either:
- selecting employee details that are prefilled from STP pay reports or
- manually entering employee details in the Business Portal if you do not use an STP enabled payroll solution.
- Submit a report and wait for the confirmation screen.
- Ensure you notify your eligible employees of their nomination.
- ATO will then will pay you the JobKeeper payment for all eligible employees after receiving your application.
- Each month, you will need to reconfirm that your reported eligible employees have not changed.
- If your eligible employees change or leave your employment, you will need to notify us through your monthly JobKeeper Declaration report.
Employers will be eligible for the JobKeeper payment if all of the following apply:
- On 1 March 2020, you carried on a business in Australia or were a not-for-profit organisation that pursued your objectives principally in Australia.
- You employed at least one eligible employee on 1 March 2020.
- Your eligible employees are currently employed by your business for the fortnights you claim for (including those who are stood down or re-hired).
- Your business has faced a:
- 30% fall in turnover (for an aggregated turnover of $1 billion or less) or
- 15% fall in turnover (for ACNC-registered charities other than universities and schools).
- Your business is not in one of the ineligible categories.
Your employee is eligible under the JobKeeper Payment scheme if they:
- are employed by you (including those 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 within the meaning of the Social Security Act 1991, which requires that they reside in Australia, and are one of an Australian citizen, the holder of a permanent visa, or a Protected Special Category Visa Holder.
- Your employee can also be an Australian tax resident who is a Special Category (Subclass 444) Visa Holder.
- Employees who are not permanent residents of Australia must notify you of their visa status to allow you to determine if they are eligible.
- were not in receipt of any of these payments during the JobKeeper fortnight
- government parental leave or Dad and partner pay
- a payment in accordance with Australian worker compensation law for an individual’s total incapacity for work
- agree to be nominated by you
Sole Traders and other entities:
Your entity may be eligible for the JobKeeper Payment scheme if you:
- have a Eligible business participant which is as non-employee individual who is actively engaged in the operation of the business and;
- Are an Eligible business entity.
A limit applies of one $1,500 JobKeeper payment per fortnight for one eligible business participant. If your entity also has employees, you may also be able to claim additional JobKeeper payments of $1,500 per fortnight per eligible employee.
The entity, (not the eligible business participant) receives the JobKeeper payment.
Eligible business participant
Your non-employee individual is an eligible business participant of your entity for the fortnight if they meet all of the following:
- They are an individual not employed by your entity.
- They are actively engaged in the business carried on by your entity (at 1 March 2020 and for the fortnight you are claiming).
- They are one of the following (at 1 March 2020 and for the fortnight you are claiming)
- a sole trader
- a partner in the partnership
- an adult beneficiary of the trust
- a shareholder or director in the company.
- As at 1 March 2020, they are both aged at least 16 and an Australian resident, or a resident for income tax purposes and the holder of a special category (Subclass 444) visa.
- They are not currently receiving government parental leave pay, dad and partner pay.
- They are not currently totally incapacitated for work and receiving payments under an Australian workers’ compensation law in respect of total incapacity to work.
- They are not an employee (other than a casual employee) of another entity.
- They have given you a JobKeeper nomination notice, and not given another entity a JobKeeper nomination notice.
Eligible business entities
Your entity is eligible if:
- on 1 March 2020, it carried on a business in Australia
- it satisfies the fall in turnover test for the relevant period
- it satisfied certain conditions as at 12 March 2020, being:
- it had an ABN on 12 March 2020, and
- it had lodged, on or before 12 March 2020, at least one of
- a 2018–19 income tax return showing that it had an amount included in its assessable income in relation to it carrying on a business, or
- an activity statement or GST return for any tax period that started after 1 July 2018 and ended before 12 March 2020 showing that it made a taxable, GST-free or input-taxed sale.
- JobKeeper payment – employee nomination notice/
- ATO Business Portal
This one is going to be a tricky one to navigate! As always we will be here to assist where possible. Please reach out via email or our office number below.