Job Keeper Payment
Federal Government response to COVID-19
The Federal government has announced further measures to support businesses and their employees through what they have called a “Job Keeper” payment.
We have summarised the information regarding this payment below in the event that you need to take advantage of this support.
Treasury’s fact sheet for employers is available here : Click to follow link
What is the Job Keeper payment?
The payment is a wage subsidy payable by the Government to businesses impacted by COVID-19 so that businesses can continue paying their employees. It is a fortnightly payment of $1,500 per eligible employee from 30 March 2020 for a maximum of 6 months. Payments from the government to employers will commence from the first week of May (backdated to 30 March 2020).
Which employers are eligible?
- Employers with business turnover of less than $1 billion and their turnover reduces by more than 30 per cent relative to a comparable period a year ago (of at least a month); or
- Employers with business turnover of $1 billion or more and their turnover reduces 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.
Not-for-profit entities (including charities) and self-employed individuals (sole trader businesses without employees) who meet the turnover tests that apply for businesses are also eligible to apply for Job Keeper payments.
Which employees are eligible?
- Employees who are currently employed by the eligible employer (including those stood down or re-hired);
- Employees who were employed by the employer at 1 March 2020;
- Who 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, as well as certain additional visa classes; and
- Are not in receipt of a Job Keeper Payment from another employer.
What are the payment and super arrangements?
- Where the Job Keeper payment is less than the employee’s current wage and the employee is continuing to work, then the employee must continue to receive their current wage, and the employer will receive a Job Keeper payment of $1,500 per fortnight to subside that wage.
Super Guarantee contributions (“SGC”) must continue to be paid on the employer’s current wage.
- Where the Job Keeper payment is more than an employee’s current wage and the employee is continuing to work, then the employer must increase the wage to $1,500 per fortnight, and the employer will receive a Job Keeper payment of $1,500 per fortnight to subsidise that wage.
SGC must continue to be paid on the employee’s current wage, and the employer has the option of paying SGC on the difference between their actual wage and the Job Seeker payment.
- Where an employee has been stood down and you receive the Job Keeper payment then you must pay your employee, at a minimum, $1,500 per fortnight, before tax.
Those businesses wishing to express interest in this payment can register here: https://www.ato.gov.au/Job-keeper-payment/