COVID-19 JobKeeper Payment

The latest Stimulus Package Update comes as a relief to so many business after some weeks of uncertainty.

Some businesses have acted prematurely in letting go of their staff in my opinion. Your business is your people. It is important to keep relationships in place and momentum, to every extent possible as your business moves through this situation. Certainly a welcome update on the last for businesses significantly impacted by the Covid-19 crisis.

Below is my summary of the JobKeeper Payment. Take your time to understand the legislation and how it applies to your business and circumstances.

 

COVID-19 JobKeeper Payment

If your business revenue has reduced by over 30% due to Covid-19 you will be able to receive a “wages subsidy” to continue paying your employees.

The claim is a fortnightly payment of $1,500 per eligible employee from 30 March 2020, for a maximum of 6 months.

This subsidy is designed to assist businesses keep staff on, maintain relationships between employers and employees, and help the business “restart” when the Covid crisis is over. It is also clearly a distribution of government funding through employers as a channel to release the pressure on Centrelink.

 

COVID-19 JobKeeper Conditions

The following conditions apply:

• Employers register an “intention to apply” on the ATO website and self declare that they have or will experience a decline of more than 30% downturn in revenue due to Covid-19.

• Employers provide to the ATO the number of eligible employees that were on payroll at 1 March 2020 and those currently employed (including those stood down or rehired).

• Employers must pay each eligible employee a minimum of $1,500 gross per fortnight.

• Employees that have been receiving less than this amount, their payment is topped up to $1,500 gross per fortnight.

• Employees earning more than this amount, the employer can pay them beyond $1,500 gross per fortnight.

• Employers must notify all eligible employees that they are receiving the JobKeeper Payment.

• Employers must continue to provide information to the ATO on a monthly basis.

• Employers are not required to pay super on wages associated with the subsidy.

 

Businesses Eligible

• Business with turnover of less than $1 billion which will reduce by more than 30% due to Covid-19. Comparison is to the same period 1 year ago (minimum period of 1 month).

• Business had eligible employees on payroll at 1 March 2020 and confirms that each employee is currently employed.

• Business without employees that meet the turnover decline test.

 

Employees Eligible

• Employees currently employed by the eligible employer (including stood down or re-hired).

• Employees employed by the employer at 1 March 2020.

• Employees that are full-time, part-time, or long-term casuals (ie casuals regularly employed for 12 months at 1 March 2020).

• Employee must be at least 16 years of age.

• Employee must be an Australian citizen, holder of a permanent visa residing continually in Australia 10 years or more, or a special class visa holder.

• Employees must not have receipt of JobKeeper Payment from another employer.

• Employees must not be receiving Jobseeker Payments.

Please stay tuned for further summaries and general advice to our customers on how to approach the COVID-19 period ahead.

If you have any questions at all regarding the JobKeeper Payment or financial and business matters surrounding COVID-19, please don’t hesitate to contact me by email or phone.