JobKeeper Payment Package
About the author:
- Author name:
- By Terri Bradford
- Job title:
- Director, Wealth Management
- Date posted:
- 31 March 2020, 4:00 PM
The JobKeeper Payment package, announced on 30 March 2020, is a $130 billion package to help businesses retain employees on their books during the COVID-19 period.
- The JobKeeper Payment is a subsidy to businesses
- The payment will be paid to employers, for up to six months, for each eligible employee that was on their books on 1 March 2020 and is retained or continues to be engaged by that employer.
- Where a business has stood down employees since 1 March, the payment will help them maintain connection with their employees.
- Employers will receive a payment of $1,500 per fortnight per eligible employee (roughly equivalent to 70% of the national median wage). Every eligible employee must receive at least $1,500 per fortnight from this business, before tax. Therefore, this is taxable income.
- The program will commence 30 March 2020, with the first payments to be received by eligible businesses in the first week of May as monthly arrears from the ATO.
- Eligible businesses can begin distributing the JobKeeper payment immediately and will be reimbursed from the first week of May.
- Eligible employers will be those with annual turnover of less than $1 billion who self-assess that have a reduction in revenue of 30% or more, since 1 March 2020 over a minimum one-month period.
- Employers with an annual turnover of $1 billion or more would be required to demonstrate a reduction in revenue of 50% or more to be eligible. Businesses subject to the Major Bank Levy will not be eligible.
- Eligible employers include businesses structured through companies, partnerships, trusts and sole traders. Not for profit entities, including charities, will also be eligible.
- Full time and part time employees, including stood down employees, would be eligible to receive the JobKeeper Payment. Where a casual employee has been with their employer for at least the previous 12 months they will also be eligible for the Payment. An employee will only be eligible to receive this payment from one employer.
- Eligible employees include Australian residents, New Zealand citizens in Australia who hold a subclass 444 special category visa, and migrants who are eligible for JobSeeker Payment or Youth Allowance (Other).
- Self-employed individuals are also eligible to receive the JobKeeper Payment.
- Eligible businesses can apply for the payment online and are able to register their interest via ato.gov.au.
Morgans clients can login to view Terri Bradford’s recent article on the Coronavirus payments via Centrelink here, which includes details on how to claim, timing of payments and more.
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