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Job Keeper

Please see below a summarised version of the current information around the Job Keeper payments. Please note the registration process!

Am I eligible for the coronavirus wage subsidy (Job Keeper payment)?

Employers will be eligible for the subsidy if:

  • 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;

  • their business has a turnover greater than $1 billion and a turnover drop of 50 per cent or more;

  • their business is not subject to the Major Bank Levy;

  • the employer must have been in an employment relationship with eligible employees as at 1 March 2020;

  • not-for-profit entities (including charities) and self-employed individuals that meet the turnover tests that apply for businesses are also eligible to apply.

  • Payable to eligible businesses through various structures, companies, partnerships, trusts and sole traders

What is an eligible employee?

Eligible employees are employees who:

  • are currently employed by the eligible employer;

  • were employed by the employer at 1 March 2020;

  • 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, 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;

  • are not in receipt of a Job Keeper payment from another employer. – can only be claimed from one employer

  • Employees paid job keeper can not claim benefits from Centrelink

  • It is important to note that only some Visa holders will be eligible for the payment.

What do I need to do to register?

Business owners need to:

  • register an intention to apply on the ATO website (below)

  • https://www.ato.gov.au/general/gen/JobKeeper-payment/

  • provide information to the ATO on eligible employees - ATO may use the Single Touch Payroll information to prepopulate employee information

  • provide monthly updates on eligible employees to the ATO;

  • notify all eligible employees they will receive the payment. – this is so they are not claiming Centrelink

What if I am a sole trader?

Sole traders need to:

  • register their interest with the ATO;

  • provide an ABN for their business;

  • nominate an individual to receive the payment;

  • provide the nominees’ Tax File Number;

  • provide a declaration as to recent business activity;

  • provide a monthly update to the ATO to declare their continued eligibility for the payments.

How will it be paid?

  • Eligible employers will be paid $1,500 per fortnight per eligible employee.

  • Eligible employees will receive, at a minimum, $1,500 per fortnight, before tax, and employers are able to top up the payment. The full $1,500 per employee must be paid to the employee even if they normally did not earn that much.

  • Payments will be made to employers monthly in arrears by the ATO.

  • Payments will begin in the first week of May 2020

  • Payments need to made to employees from March 30 onwards to be eligible. Payments need to be made.

  • If you are unable to pay employees before the ATO makes payments you may need to source alternative short term funding

  • Payments will last for 6 months

  • NOTE the ATO will be checking payments through the single touch payroll system to ensure that employees remain eligible

What about superannuation?

  • Employers are expected to continue to pay the superannuation guarantee on regular wages.

  • However, it will be up to the employer if they want to pay superannuation on any additional wage paid because of the Job Keeper payment.

Businesses need to identify which employees they will be paying these subsidies to and adjust rosters accordingly. Employees that had previously been stood down can now be brought back under this scheme.

What do you need to do now?

  • Register with ATO and follow any relevant instructions around registration once they become available

  • If you need further assistance please email admin@woodsaccounting.com.au

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