The third wave of the Stimulus Package – JobKeeper payment

Today our Prime Minister and Treasurer announced a third wave of their Stimulus package – the Jobkeeper payment, to assist both businesses and employers to get through the Coronavirus pandemic.

Let’s break it down based on whether you are a business owner (an employer) or employee.

For employers

Jobkeeper payment is aimed at providing a wage subsidy to employers for them to keep paying staff wages and avoid having to stand them down, or terminate. It pays eligible employers $1,500 per fortnight per eligible employee. The payment starts from today for a maximum of 6 months.

Are you an eligible employer?

You will be eligible for the subsidy if:

  • Your business turnover is reduced by more than 30% (or 50% for businesses with turnover of $1 billion or more) when compared to a period a year ago (at least a month) and
  • The business is not subject to Major Bank levy (almost not applicable to all small businesses)

They must also have been employing eligible employees as of 1 March 2020 and able to confirm each eligible employee is currently engaged in order to receive the wage subsidy.

The subsidy will also apply to not-for-profit entities and self-employed individuals that meet the turnover tests (as stated above).

Do you have eligible employees?

Eligible employees are employees who:

  • are currently employed by the eligible employer (including those stood down or re-hired);
  • were employed by the employer at 1 March 2020;
  • are full-time, part-time, or long-term casuals (a casual employed on a regular basis for longer than 12 months as at 1 March 2020);
  • are at least 16 years of age;
  • are an Australian citizen, the holder of a permanent visa, a Protected Special Category Visa Holder, a non-protected Special Category Visa Holder who has been residing continually in Australia for 10 years or more, or a Special Category (Subclass 444) Visa Holder; and
  • are not in receipt of a JobKeeper Payment from another employer.

I’m in – how do I apply?

Employers

They can register their interest in applying for Jobkeeper payment via the ATO website from now on.

First payment is expected to be paid in the first week of May.

Obligations

  • employers will be required to ensure they pass on the full wage subsidy to the employee – ie $1,500 per fortnight before tax.
  • Employers are expected to identify eligible employees for the Jobkeeper payments and provide monthly updates to the ATO.
  • Employers need to communicate with employees that they are registered for Jobkeeper payment, so employees will not double dip the system by applying for the Jobseeker payment

Self-employed

They can register their interest in applying for Jobkeeper payment via the ATO website from now on.

They need to provide an ABN of the business, nominate an individual to receive the payment and provide the individual’s TFN and declaration regarding recent business activity.

Every month they are required to provide an update to the ATO to declare their continued eligibility for the payments. Payments will be made to the individual’s bank accounts monthly.

For employees

The payment applies to eligible employees: people who are at least 16 years of age, AND either a Australian citizen, the holder of a permanent visa, a Protected Special Category Visa Holder, a non-protected Special Category Visa Holder who has been residing continually in Australia for 10 years or more, or a Special Category (Subclass 444) Visa Holder only.

The payment applies to anyone who is working as either full time, part time or casual (provided you have been with your employer for more than 12 months).

If your employer is applying for the Jobkeeper payment, you will be notified, no further actions are required and you should receive your payments which is minimum $1,500 every fortnight (before tax). If you are on a higher fortnightly payment, you should expect no difference in your payment amount as the first $1,500 will be subsidized by the Government.

If you have multiple jobs, you need to notify the employer who you consider to be the primary employer.

For those who have previously applied for the Jobseeker payment, you may need to notify Centrelink to cancel the application, as you can only apply for either the JobSeeker or the JobKeeper payment.

If you currently receive other income support payments from Centrelink you need to notify them of your new income, as this will affect your income support payment eligibility.

This applies to eligible employees who were employed on 1 March 2020, then have been laid off and re-hired by the same eligible employer.

We are still here to help!

We understand the different waves of Stimulus package are very confusing, not to mention the overload of all the news that is flying through our newsfeed and every news update on TV. If you believe you are eligible as an employer (or need help understanding these complex rules), and would need assistance to be registered, please let us know!

Employees, if you need help understanding what your obligations are and what you’re expected to be receiving, please get in touch with us.