Jobkeeper Payment – Economic Stimulus Package

 

31 March 2020

The Federal Government has announced a further $130 billion to support the economy with the announcement of the JobKeeper Payment.

The JobKeeper Payment is to be paid to employers so they can pay their employees whether they have been stood down or continue to be engaged in the business.

Support Provided

  • Employers can claim a fortnightly payment of $1,500 per employee which must be paid to the employee:

    • If the employee is paid less than $1,500 per fortnight the employer must top up the employee payment to $1,500 per fortnight

    • If the employee is paid greater than $1,500 per fortnight the employer will only be reimbursed $1,500 per fortnight

  • The first payment is to be made through the ATO on 1 May 2020

  • The payment will be back paid to cover employees’ wages from 30 March 2020

Eligibility

Employers

You will be able to show that your turnover will be reduced by more than 30 percent relative to a comparable period a year ago (of at least a month)

  • The employee must have been employed as at 1 March 2020

Eligible Employees

  • Must be a current employee – including those stood down or re-hired

  • Were employed at 1 March 2020

  • Are full-time, part-time, or a casual employee employed on a regular basis for longer than 12 months as at 1 March 2020

  • Employees will not be required to go through Centrelink to continue to get support

Actions Required

  • Register
    your interest in applying for the JobKeeper payment via     https://www.ato.gov.au/Job-keeper-payment/

  • Review
    and monitor turnover to ascertain if your turnover has decreased by 30% for a period

  • Decide
    which of your employees including those already stood down are eligible for the JobKeeper Payment as they must receive a minimum $1,500 per fortnight before tax and payment must restart if they have been stood down.

  • Assess
    the impact on cash flow as the wages will need to be paid in April before the first reimbursements will be paid from 1 May 2020

Businesses without employees


Businesses without employees (Self Employed) will also be able to claim the JobKeeper payment and they should also register their interest via ato.gov.au.

The information is provided on the basis of the information available at the time of writing and we will continue to review and advise on eligibility when the legislation is passed. Should you wish to discuss your eligibility for the support and the impact on your business please do not hesitate to contact us.

A link to the Government Fact Sheet providing more detail and examples is:
https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet_supporting_businesses_1.pdf