JobKeeper Payments – Information for Employers

In its efforts to provide much needed relief to employers and employees from the financial impact of COVID-19, the Australian Government has announced the JobKeeper Payment scheme to support employers who are experiencing economic downturn in the wake of COVID-19, in continuing to pay both functioning and stood down or rehired workers.

How does the JobKeeper Payment work?

• From 30 March 2020, eligible employers will be able to claim a fortnightly subsidy of $1500 per eligible employee to pass on to eligible employees, for a maximum period of 6 months.
• The scheme was announced on Monday, 30 March 2020. The Australian Treasury has published a guide on how to apply for JobKeeper payments.

Who is an Eligible Employer?

An employer will be eligible where their business:

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

Sole traders, self-employed people, partnerships, trusts and not for profits will also be eligible should they meet the turnover test above.

Responsibilities?

Eligible employers must:

• notify all eligible employees that they are receiving the payment; and
• comply with their legal obligation to pass on the full wage subsidy to the eligible employee.

Who is an Eligible Employee?

An eligible employee is a full-time worker, part-time worker, or long-term casual (a casual employed on a regular basis for longer than 12 months as at 1 March 2020) who is;

• currently employed by the eligible employer (including those who continue to work, have been stood down or re-hired by their employer after being retrenched); and
• were employed by the employer as at 1 March 2020; and
• at least 16 years of age; and
• 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
• not in receipt of a JobKeeper Payment from another employer.

If you would like further advice about these scheme, please contact us to discuss.