For employers - the Government has announced a wage subsidy of $1,500 (before tax) per eligible employee from 30 March 2020, for a maximum of 6 months.
The link to register your intention is https://www.ato.gov.au/Job-keeper-payment/.
Eligible employers
Employers will be eligible for the subsidy if:
- your turnover will be reduced by more than 30 per cent relative to a comparable period a year ago (of at least a month).
- you had eligible employees as at 1 March 2020 and will receive JobKeeper payment.
Eligible employees
Eligible employees are:
- currently employed by the eligible employer.
- were employed by the employer at 1 March 2020.
- are full-time, part-time or long-term casuals (a casual employed on a regular basis for longer than 12 months as at 1 March 2020).
- are at least 16 years of age.
- are an Australian citizen, permanent visa, protected special category visa, non protected special category visa who has been residing continually in Australia for 10 years or more.
- are not receipt of a JobKeeper payment from another employer.
The fist payment will be received by employers from the ATO in the first week of May. Eligible employers will need to identify eligible employees for JobKeeper payments and must provide monthly updates to the ATO.
Businesses without employees
Businesses without employees, such as the self-employed, can register their interest in applying for JobKeeper Payment via ato.gov.au from 30 March 2020.
Businesses without employees 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.
Further details for the self-employed will be provided on ato.gov.au.
Example of wage subsidy payment
- Anne, who is a permanent full-time employee on a salary of $3,000 per fortnight before tax and who continues working for the business; and
- Nick, who is a permanent part-time employee on a salary of $1,000 per fortnight before tax and who continues working for the business.
Adam is eligible to receive the JobKeeper Payment for each employee, which would have the following benefits for the business and its employees:
- The business continues to pay Anne her full-time salary of $3,000 per fortnight before tax, and the business will receive $1,500 per fortnight from the JobKeeper Payment to subsidise the cost of Anne’s salary and will continue paying the superannuation guarantee on Anne’s income.
The business continues to pay Nick his $1,000 per fortnight before tax salary and an additional $500 per fortnight before tax, totalling $1,500 per fortnight before tax. The business receives $1,500 per fortnight before tax from the JobKeeper Payment which will subsidise the cost of Nick’s salary. The business must continue to pay the superannuation guarantee on the $1,000 per fortnight of wages that Nick is earning. The business has the option of choosing to pay superannuation on the additional $500 (before tax) paid to Nick under the JobKeeper Payment.
Adam can register his initial interest in the scheme from 30 March 2020, followed subsequently by an application to ATO with details about his eligible employees. In addition, Adam is required to advise his employees that he has nominated them as eligible employees to receive the payment. Adam will provide information to the ATO on a monthly basis and receive the payment monthly in arrears.
Newer: CORONAVIRUS SME GUARANTEE SCHEME
Older: Queensland COVID-19 Support Loans is now available
Back to All News