The JobKeeper Payment Explained

On 8 April 2020, the Federal Government passed the Coronavirus Economic Response Package 2020 which authorised the introduction of the widely publicised “JobKeeper payment” for eligible employees.

The JobKeeper payment is a wage supplement of $1,500.00 per fortnight (subject to PAYG tax) that is being introduced by the Federal Government to eligible businesses for eligible employees whose jobs and income have been impacted by the COVID-19 pandemic.

Is my business eligible?

A business will be eligible for the JobKeeper payment if:
  1. The business has an aggregated turnover of less than $1 billion (for income tax purposes) and their GST turnover has fallen or will likely fall by 30% or more; or
  2. The business has an aggregated turnover of more than $1 billion (for income tax purposes) and estimate that their GST turnover has fallen or will likely fall by 50% or more; or
  3. The business is not subject to the Major Bank Levy

Which of my employees are eligible?

An eligible employee is an employee of your business who:
  • Is currently employed (including being stood down) as of 1 March 2020,
  • Is full-time or part-time, or a casual employee who has been employed on a regular and systematic basis for longer than 12 months as of 1 March 2020,
  • Is a permanent employee of the employer, or if a casual employee, not a permanent employee of any other employer;
  • Was 16 years or older as at 1 March 2020,
  • Was an Australian citizen, the holder of a permanent visa, or a Special Category (Subclass 444) Visa Holder at 1 March 2020,
  • Was a resident for Australian tax purposes on 1 March 2020, and
  • Is not in receipt of a JobKeeper payment from another employer.

How do I register?

To register for the JobKeeper payment, a business must register online with the Australian Taxation Office (ATO). Upon registration with the ATO, you will be able to nominate which of your employees are eligible for the JobKeeper payment. Any employees you nominate as an eligible employee for the JobKeeper payment are required to be informed following registration.

How We Can Help?

We offer fixed fee support for Australian businesses during these unprecedented times that can be accessed via the link below.

With the employment law landscape rapidly changing, now is the time to ensure that your business is compliant with the legislation as it continues to evolve throughout this pandemic.

We look forward to hearing from you and wish you good health through this difficult time.

By Haydon Potter,
Solicitor