JobKeeper: The Third Update to the Federal Stimulus Package

Overview:

The Federal Government has announced their third instalment of coronavirus stimulus measures, JobKeeper Payments.

JobKeeper Payments are cash payments of $1,500 per employee per fortnight offered to businesses that have had a significant reduction in turnover due to the impacts of coronavirus.

Employers will be eligible for the subsidy if:

• Their business has a turnover of less than $1B and their turnover will be reduced by more than 30% relative to a comparable period a year ago (of at least a month); or
• Their business has a turnover of $1B or more and their turnover will be reduced by more than 50% relative to a comparable period a year ago (of at least a month); and
• The business is not subject to the Major Bank Levy.

The payments will commence from 1 May 2020, but be backdated to 30 March 2020, and be paid for 6 months.  It will be up to the employer if they want to pay superannuation on any additional wage paid because of the Job Keeper Payment.

To receive Job Keeper Payments, employers must:

• Register with the ATO.
• Provide information to the ATO regarding their eligible employees.  Eligible employees are those that:
  • Have been employed as at 1 March 2020, including those that have since been stood down (or rehired after 1 March).
  • Are full time, part time or casual (a casual employee must have been employed for over 12 months to 1 March 2020).
  • Are at least 16 years of age.
  • Are an Australian citizen or certain visa holder.
  • Are not in receipt of a Job Seeker Payment from another employer.
    (The ATO will use data from one-touch payroll to populate employees for the employer in the system)

• Ensure each employee receives $1,500 per fortnight (before tax).  For employees:
  • Earning less than $1,500 a fortnight, they must be paid $1,500 a fortnight.
  • Earning more than $1,500 a fortnight, the employer may provide them with a top-up.
  • Notify every eligible employee that they are receiving the Job Keeper Payment.
  • Continue to provide the ATO with all information monthly.

Businesses without employees will need to provide an ABN for their business, nominate an individual to receive the payment and provide that individual’s TFN and provide a declaration as to recent business activity. People who are self-employed will need to provide a monthly update to the ATO to declare their continued eligibility for the payments. Payment will be made monthly to the individual’s bank account.

For JobKeeper FAQ’s Click Here