The JobKeeper legislation has been passed by the Commonwealth Parliament. The JobKeeper scheme will allow eligible employers to apply to the Australian Taxation Office (ATO) to receive wage subsidies for the eligible employees. Employers will be able to claim a fortnightly payment of $1,00 before tax per eligible employee from 30 March 2020 for a period of up to 6 months.
These are the important parts of the scheme:
Which businesses are eligible?
Employers must meet these conditions to be eligible for the JobKeeper Payment scheme:
- For businesses with annual aggregated turnover less than $1 billion, the turnover of the business has reduced (or will reduce) by more than 30%.
To establish that a business has a 30% drop in revenue, the amount would be calculated based on GST turnover. Accordingly, if you report quarterly, it will be the three months including March last year. It would appear therefore that you need an ABN to participate in the scheme.
If are are likely to expect that turnover will be reduced, then the ATO has discretion to use an alternate test. At this stage, no guidance has been provided.
Which employees are eligible for the JobKeeper payment?
Employees will be eligible for JobKeeper payments if:
- they were ‘on the books’ on 1 March 2020;
- they are currently employed by an eligible employer (this includes employees who were stood down as at 1 March 2020, or have since been stood down);
- was employed full-time, part-time or, casually (a casual must have been with the employer for at least 12 months on a regular and systematic basis);
- they were aged 16 years or older at 1 March 2020;
- they were an Australian citizen, the holder of a permanent visa, or a Special Category (Subclass 444) Visa Holder, as at 1 March 2020;
- they were a resident for Australian tax purposes on 1 March 2020; and
- they have not received a JobKeeper payment from another employer.
What does the employer have to do to make a claim and when?
To receive the subsidy, employers are required to:
- Register interest in the JobKeeper payment on the ATO website. The ATO website indicates that those who register will receive relevant updates. https://www.ato.gov.au/Job-keeper-payment/
- Notify the Commissioner that it wants to participate (in the approved form) by 26 April 2020 if it wants to participate from the commencement of the scheme on 30 March 2020. Otherwise it must notify its participation before the end of the first JobKeeper fortnight for which it wants to participate.
- Obtain a notification from each employee, confirming the employee’s consent to being included in the employer’s JobKeeper application.
- Provide details of eligible employees for each fortnight to the ATO in the approved form. The ATO will use Single Touch Payroll data to assist in this process by pre-population.
- Notify eligible employees within 7 days of each fortnightly claim for the subsidy.
- Report monthly to the Commissioner by the 7th of each month on its GST turnover for the previous month, and its projected GST turnover for the coming month.
The first payment by the ATO bill be received by employers in the first week of May.
Are self employed individual eligible?
Yes. Self-employed individuals will be eligible to receive the payment, provided, they meet the following:
- estimate their turnover has or will fall by 30 per cent or more;
- had an ABN on or before 12 March 2020, and
- either had an amount included in its assessable income for the 2018-219 and it was included in their income tax return lodged on or before 12 March 2020 (or such later time as allowed by the ATO);
- made a supply during the period 1 July 2018 to 12 March 2020 and provided this information to the ATO on or before 12 March 22020 (or such later time as allowed by the ATO).
- were actively engaged in the business;
- are not entitled to another JobKeeper Payment (either a nominated business participant of another business or as an eligible employee);
- were aged at least 16 years of age as at 1 March 2020; and
- were an Australian citizen, the holder of a permanent visa, or a Special Category (Subclass 444) Visa Holder at 1 March 2020.
Can Trusts receive the JobKeeper Payment?
Trusts can receive JobKeeper payments for any eligible employees. Where beneficiaries of a trust only receive distributions, rather than being paid salary and wages for work done, one individual beneficiary (that is, not a corporate beneficiary) can be nominated to receive the JobKeeper Payment.
Newer: JobKeeper payment enrolment process is now open with the ATO
Older: CORONAVIRUS SME GUARANTEE SCHEME
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