The $1,500 JobKeeper Package - what you need to know

$1,500 JobKeeper subsidy to keep staff employed

Date
  • From 30 March 2020 for six months
  • For employees employed at and from 1 March 2020
  • First payments in first week of May 2020
Applies to
Based on comparable periods:
  • Employers <$1 bn that have experienced a downturn of more than 30%
  • Employers >$1bn that have experienced a downturn of more than 50%

 

A subsidy of $1,500 per fortnight per employee, administered by the ATO, will be paid to businesses that have experienced a downturn of more than 30% (50% for businesses over $1bn).

To be a part of the subsidy, employers will need to ensure that their employees receive at least $1,500 per fortnight (before tax). See the example below.


Eligibility

There are two levels of eligibility; for employers and employees.

Eligible employers are those with:

Sole traders and the self-employed with an ABN, and not-for-profits (including charities) that meet the turnover tests are eligible for the JobKeeper payment.

Eligible employees are those who:

While it appears that businesses without employees can potentially qualify for JobKeeper Payments, it is not clear at this stage what conditions will need to be satisfied.

How the support is calculated

The ATO will administer this program and will make the $1,500 payments based on payroll information. The payments will be made monthly in arrears, so it is essential that you ensure your business and your employees continually meet the eligibility criteria.

The business will continue to receive the payments for eligible employees while they are eligible for the payments. While the program is expected to run for 6 months, payments will stop if the employee is no longer employed by the relevant employer.

To manage the process, you must:

Register

Assess turnover

Identify eligible employees

Sole traders and the self-employed can register their interest in applying for the JobKeeper payment with the ATO. These businesses will need to provide an ABN for the business, nominate an individual to receive the payment, provide the individual’s TFN and declare their continued eligibility for the payments. Payments will be monthly to the individual’s bank account.


Example

Adam owns a real estate business with two employees. The business is still operating at this stage but Adam expects that turnover will decline by more than 30% in in the coming months. The employees are:
 
Employee
Employment type
Salary per fortnight (before tax)
Anne
Full-time
$3,000
Nick
Part-time
$1,000
 
Both Anne and Nick are still working in the business.
 
Adam registers his interest in the JobKeeper scheme (from 30 March 2020), then applies to the ATO providing details of his eligible employees. Adam also advises Anne and Nick that he has nominated them as eligible employees to receive the payment. Adam will provide information to the ATO on a monthly basis and receive the payment monthly in arrears.
 
Adam’s business is eligible to receive the JobKeeper Payment for each employee.
 
For Anne, the business will:
  • Continue to pay Anne her full-time salary of $3,000 per fortnight before tax,
  • Receive $1,500 per fortnight from the JobKeeper Payment
  • Pay superannuation guarantee on Anne’s salary
 For Nick, the business will:
  • Continue to pay Nick $1,000 per fortnight before tax salary
  • Pay Nick an additional $500 per fortnight before tax (totalling $1,500)
  • Receive $1,500 per fortnight from the JobKeeper Payment
  • Pay superannuation guarantee on Nick’s wage of $1,000 per fortnight (but can choose to pay SG on the full $1,500)
 
Adapted from Treasury fact sheet: JobKeeper payment — information for employers



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