JobKeeper Payment has now been legislated by ParliamentApril 14, 2020
The JobKeeper Payment has now been legislated by Parliament, and the eligibility rules have been officially released by Treasury, broadly in line with earlier guidance.
The updated Treasury fact sheets can be found here:
The rules and other guidance are best summarised in the Treasury fact sheet JobKeeper payment – Frequently asked questions:
In summary, the JobKeeper Payment provides a wage subsidy to businesses impacted by Coronavirus. The Government will provide eligible employers with $1,500 per fortnight per employee to help them retain workers through this period.
Key Points for Employers
All eligible employers / entities must register their interest on the ATO website.
Employers will be eligible if, at the time of applying, they estimate that their turnover has fallen (or will likely fall) by at least 30% as a result of the current restrictions / COVID-19 impact relative to a comparable period in 2019.
The period will be based on the usual GST reporting period of the business, i.e. for monthly lodgers this can be a month from March 2020 to September 2020 compared to the same month in 2019. For quarterly lodgers, the comparison is between the turnover for the June or September 2020 quarters and the same quarter in 2019.
If turnover has not yet declined but it is expected to do so, a business can start claiming from a future period, although payments will not be backdated.
Businesses whose “aggregated turnover” for income tax purposes is likely to exceed $1 billion must instead show a 50% reduction in turnover. For testing whether the 50% rate applies the turnover of certain related entities, including foreign residents, is taken into account.
Deductible Gift Recipients (DGR’s) and other charities registered with ACNC will be eligible if they estimate their turnover has fallen (or will likely fall) by at least 15% or more relative to a comparable period a year earlier.
When calculating the reduction, turnover is defined to be “GST turnover” as reported on Business Activity Statements. It includes all Australian taxable supplies and GST free supplies but not input taxed supplies.
Consistent with the GST law includes only Australian-based sales, so a decline in overseas operations will not be counted in the turnover test.
Where a business or charity was not in operation a year earlier, or the turnover a year earlier is not representative of their usual turnover (e.g. where it was impacted by the drought in the Eastern States), the ATO has discretion to consider additional information to establish that they have been adversely impacted by COVID19, and apply an alternative methodology.
The JobKeeper Payment covers part time, full time, stood down employees and long-term casual workers (that is, those who have been with their employer on a regular and systematic basis for at least 12 months).
Payments will be available for a period of 6 months from 30 March 2020.
The Payment applies to employees ‘on the books’ as at 1 March 2020. Therefore, there is an opportunity for staff that had been terminated or stood down in the past weeks to be reinstated and become eligible.
Employers will need to report to the ATO on a monthly basis regarding the number of eligible employees.
To be eligible however, employees cannot be getting other benefits such as Job Seeker payments.
Eligibility of Sole Traders
Businesses without employees, such as the self-employed, can also register their interest in applying for JobKeeper payments from 30 March 2020.
Sole traders will need to have had an ABN on or before 12 March 2020 and have either:
Reported an amount of assessable income in their 2019 tax return, if lodged prior to 12 March 2020; or
Made a supply between 1 July 2018 and 12 March 2020 and provided this information to the ATO prior to 12 March 2020.
Sole traders will need to provide an ABN and nominate an individual to receive the payment and provide that individual’s Tax File Number as well as provide a declaration as to recent business activity.
Eligibility of Other “Self-Employment” Entities
Other entities carrying on a business may be able to receive the JobKeeper Payment for one (but only one) “owner” who is working in the business but not receiving their remuneration as an employee:
One partner in an eligible partnership can be nominated.
One individual beneficiary can be nominated.
One director in an eligible company can be nominated.
One shareholder in an eligible company, receiving their remuneration for labour by way of dividends, may be nominated.
The Payment Process
Businesses must have paid their employees before they are entitled to receive the JobKeeper Payment. Employers will be reimbursed by the ATO monthly in arrears starting from 1 May 2020, backdated to 30 March 2020.
The payments to employees should be made through an employer’s payroll system and reported to the ATO via Single Touch Payroll.
Each employer in a group generally reports separately in relation to their JobKeeper Payment obligations, although certain adjustments will be made for sales by members of GST Groups.
Eligible employers must pay eligible employees a minimum of $1,500 (before PAYG withholding) per fortnight (from 30 March 2020) in order to be eligible for the JobKeeper Payment. If the employee has not been paid this minimum amount a ‘top-up’ payment will be required to be made.
If the eligible employee is paid more than $1,500 per fortnight (before PAYG withholding), the employer will only be reimbursed up to $1,500 per fortnight.
The JobKeeper Payment will generally be made by the ATO directly to the employer and will not be used to offset other tax liabilities.
Where an employee is usually paid more than $1,500 per fortnight and continues to be paid more than $1,500 per fortnight, the employer’s superannuation obligations will not change.
Where an employee’s wages are “topped-up” to meet the minimum payment requirement of $1,500 per fortnight, there is no additional superannuation obligation in respect of the “top-up” payment being made.
As an employer or sole trader, you can register your interest in applying for the “JobKeeper” payments with the ATO via the link below.
Subscribe to our newsletter
- 2022-23 Federal Budget summary March 30, 2022
- HLB Mann Judd’s Autumn 2022 Financial Times March 10, 2022
- Business leaders’ confidence bounces back, as they look to innovate at speed February 01, 2022
- IPO Watch Australia Report January 28, 2022
- who got JobKeeper payments December 07, 2021
- The Bottom Line Issue 11 by HLB Mann Judd November 01, 2021
- ASIC releases guidance on crypto-asset related investment products October 29, 2021
- third edition of NEXT from KWM October 21, 2021
- Using blockchain for sustainability and green finance October 21, 2021
- ASIC releases 2020–21 Annual Report October 15, 2021
- HLB’s quarterly newsletter September 13, 2021
- ASIC enforcement update January to June 2021 September 09, 2021
- HLB Mann Judd Client Alert – Spring 2021 August 31, 2021
- Modernisation of document execution and meetings and continuous disclosure reform August 13, 2021
- High Court offers clarity around casuals August 05, 2021
- FAR is here – what does it mean for insurers and insurance? August 04, 2021
- IPO watch mid year report July 21, 2021
- Intergenerational Report (IGR) July 01, 2021
- ASIC review of 31 December 2020 financial reports June 16, 2021
- 21-129MR ASIC highlights focus areas for 30 June 2021 financial reports under COVID-19 conditions date of release 10/6/2021 June 10, 2021
- HLB’s quarterly newsletter June 08, 2021
- 2021-2022 Federal Budget May 12, 2021
- Climate change risk disclosures and governance of the ASX50 in 2020 May 11, 2021
- ASIC quarterly update January to March 2021 May 06, 2021
- Firms offering debt management services require credit licence to operate May 05, 2021
- New SME Recovery Loan Scheme March 12, 2021
- Federal Government releases guidance to help businesses and employees better understand their rights and responsibilities in relation to the COVID-19 vaccination in the workplace March 02, 2021
- 2021 IPO Watch Report January 29, 2021
- ASIC highlights focus areas for 31 December 2020 financial reports under COVID-19 conditions December 15, 2020
- ASIC to further extend financial reporting deadlines for listed and unlisted entities and amends ‘no action’ position for AGMs November 11, 2020
- Federal Budget Report 2020-21 October 07, 2020
- Protection for bankruptcy extended September 09, 2020
- ASIC provides relief for companies planning an initial public offering August 27, 2020
- JobKeeper changes to be aware of from 3 August 2020 August 17, 2020
- IPO Watch Mid-Year Report July 24, 2020
- PCP extends platform company eligibility July 22, 2020
- PCP share facilitation company Sharetech now open for business July 22, 2020
- How to deal with COVID-19 in the reporting season July 13, 2020
- financial reporting news and insights June 30, 2020
- End of Year Tax Planning Guide – 2019/20 June 02, 2020
- COVID-19 | Reporting deadlines further extended for listed and unlisted entities May 14, 2020
- COVID-19: Signing contracts electronically just got easier for companies May 06, 2020
- ASIC reports on corporate finance regulation – July to December 2019 April 20, 2020
- JobKeeper Payment has now been legislated by Parliament April 14, 2020
- ASIC to provide additional time for unlisted entity financial reports April 09, 2020
- Coronavirus stimulus package to include jobkeeper payments March 31, 2020
- New ASIC guidelines for upcoming AGMs and financial reporting requirements in light of COVID-19 March 25, 2020
- Initial public offers: Relief for voluntary escrow arrangements and preprospectus communications February 24, 2020
- Financial Services Royal Commission Draft Legislation February 04, 2020
- 2020 IPO Watch Report January 30, 2020
- The execution challenge for a new decade January 21, 2020
- Australian Government delays implementation of Open Banking after facing practical issues with the new Consumer Data Right January 13, 2020
- ASIC reports on corporate insolvencies 2018–19 December 19, 2019
- ASIC Financial reporting focuses for 31 December 2019 December 06, 2019
- ASIC releases report on mining and exploration initial public offers December 05, 2019
- Final ASX listing rules reforms – summary of key changes November 12, 2019
- tokenized securities are the next big megatrend of the blockchain revolution November 06, 2019
- CDR privacy safeguards: OAIC guidance released November 06, 2019
- Financial Services Council releases guide to help stop elder financial abuse October 31, 2019
- Final ASX listing rules reforms October 11, 2019
- ATO celebrates 20-year milestone of regulating self-managed superannuation funds October 10, 2019
- ASIC reports on corporate finance regulation – January to June 2019 September 23, 2019
- Does your SMSF investment strategy meet diversification requirements?’ September 19, 2019
- ASIC’s Corporate Plan 2019-2023 August 28, 2019
- Government announces Hayne Royal Commission implementation timetable August 26, 2019
- Countdown to AGM August 20, 2019
- ASIC enforcement update January to June 2019 August 18, 2019
- ASIC Warns On Insider Trading In Small Cap Miners August 03, 2019
- APRA proposes stronger rules on remuneration August 01, 2019
- AASB 16 Leases – get it right as it may have a large impact on your financial reporting July 19, 2019
- FATF releases 2019 guidance on virtual assets: 9 key points and global changes July 18, 2019
- Major financial reporting changes and other focuses June 17, 2019
- ASIC issues guidance to licensees to protect against share sale fraud June 16, 2019
- ASIC consults on proposals to maintain investor protections by restricting retail offers of ‘stub-equity’ in control transactions June 04, 2019
- ASIC releases market integrity report May 31, 2019
- ASIC updates information for businesses on ICOs and crypto-assets May 30, 2019
- Succession Planning May 14, 2019
- Large proprietary company thresholds increased April 16, 2019
- Australia passes new laws regulating streaming of abhorrent violent material by ISPs and other content providers April 15, 2019
- Federal Budget Review April 03, 2019
- ‘Mind the gap’ – consumers confusing different types of financial advice March 28, 2019
- Accounting and Financial Reporting Standards update March 27, 2019
- ATO & Council of Financial Regulators report on SMSF borrowing arrangements March 22, 2019
- fourth edition of ASX Corporate Governance Council’s Principles and Recommendations officially released. February 27, 2019
- ASIC consults on updating its responsible lending guidance February 14, 2019
- Final report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry February 02, 2019
- ASIC reports on 2018 annual general meeting season January 31, 2019
- new mandatory wording requirements for service providers under the Australian Consumer Law January 30, 2019
- Protecting your PPSR Registration from Expiry January 30, 2019
- Findings from 30 June 2018 financial reports January 25, 2019
- Western Australia expands its duty base December 18, 2018
- Australian startup and young technology company funding report 2017/18 December 01, 2018
- proposed changes to the ASX Listing Rules December 01, 2018
- Plans to reduce the financial reporting burden for Australian proprietary companies. November 27, 2018
- The SEC reiterates its position on the issuance, trading and investment in digital assets November 23, 2018
- Three companies combining with a common vision of providing coordinated solutions for unlisted companies November 20, 2018