Am I eligible for the JobKeeper payment?

||Business Advisory

During this trying time, the Australian Government has dug in deep to help Small Businesses maintain momentum.

Currently to date job loss around the country sits at more than 700,000 and is continuing to rise. As a result the government has introduced an ongoing fortnightly payment of $1,500.00 before tax per employee. But who is eligible? What is used to show turnover reduction? Which employees will receive the payment? How does the payment Work? when is the payment first received? How to apply? Keep reading. Below we try to answer all these common questions.

Am I eligible for the JobKeeper payment?

  • Does your business have a turnover of less than $1 billion and your turnover has fallen by more than 30% (of at least a month); or
  • Does your business have a turnover of $1 billion or more and your turnover has fallen by more than 50% (of at least a month);and
  • Can you confirm your business is not subject to the Major Bank Levy

What do I need to show my turnover had reduced by the relevant percent?

  • You will need to provide evidence that your turnover has fallen in the relevant month or three months (depending on the natural activity statement reporting period of your business) relative to your turnover a year earlier. For example, the March quarter for the period ending 31 March 2020 compared to the March Quarter for the period ending 31 March 2019. If you are on monthly reporting, you will apply the same methodology, for the relative month.
  • Where you were not in operation a year earlier, or your prior year results do not reflect normal conditions for example your income is much lower in the prior year due to drought or your business was in the start-up phase, the Tax Commissioner will have discretion to consider additional information.

Which employees can I claim this payment for?

  • You will need to be in an employment relationship as of 1 March 2020 and confirm that the employee is still currently engaged in employment. This does still include the employees who were stood down or rehired.
  • The employee is full-time, part-time or employed on a casual basis for longer than 12 months.
  • The employee is 16 years or older
  • The employee is an Australian Citizen, 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
  • Employee is not receiving this JobKeeper payment from another employer.

How does the payment work?

  • If your employee ordinarily receives $1,500 or more in income per fortnight before tax, they will continue to receive their regular income according to their prevailing workplace arrangements. The JobKeeper Payment will assist you to continue operating by subsidising all or part of the income of your employee(s).
  • If your employee ordinarily receives less than $1,500 in income per fortnight before tax, your employee will receive, at a minimum, $1,500 per fortnight, before tax.
  • If your employee has been stood down and you are claiming this payment for them, your employee will receive at a minimum, $1,500 per fortnight, before tax.
  • If your employee was employed on 1 March 2020, subsequently ceased employment with you and then has been re-engaged by you, the employee will receive, at a minimum, $1,500 per fortnight, before tax
  • It will be at your discretion as to whether you pay superannuation on any additional wages because of the JobKeeper payment.

When will you receive the JobKeeper payment for your eligible employees?

  • The subsidy will begin accruing on the 30 March 2020, with the first payment being paid in the first week of May.

How do I apply for the JobKeeper payment and what are the ongoing requirements?

  • You can register your interest for the JobKeeper payment as of 30 March 2020 using the ATO Website. You can use the following link _https://www.ato.gov.au/general/gen/JobKeeper-payment/ _
  • You will need to identify your eligible employees and provide monthly updates to the ATO ensuring that your employees are receiving the $1,500 before tax.

If you require any assistance throughout this process or would like more information, our team are here to support you.

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