JobKeeper Payment introduced for businesses in response to COVID-19

Great news for business! The Federal Government has announced a new JobKeeper Payment for businesses impacted by Coronavirus.

Under the scheme, affected businesses will be able to access a subsidy to continue paying their employees. Does this apply to you?

If so, affected employers will be able to claim a fortnightly payment of $1,500 per eligible employee from 30 March 2020, up to a maximum period of 6 months.

The payment supports businesses and their employees, ensuring eligible employers remain connected to their workforce with a goal of helping businesses to restart quickly when the COVID-19 health crisis is over.

How will the JobKeeper subsidy be paid?

Payments will commence from 1 May 2020 and be backdated to 30 March 2020. This subsidy will be paid by the Australian Taxation Office (ATO) to the employer to pass on to employees. It will be available to:

full-time workers,
part-time workers,
sole traders, and
casuals who have been employed for at least 12 months.

Who’s eligible to access the subsidy?

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% relative to a comparable period a year ago (of at least a month), or
their business has a turnover of $1 billion or more and their turnover will be reduced by more than 50% relative to a comparable period a year ago (of at least a month), and
the 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, and confirm that each eligible employee is currently engaged in order to receive JobKeeper Payments.
Not-for-profit entities (including charities) and self-employed individuals (businesses without employees) that meet the turnover tests that apply for businesses are eligible to apply for JobKeeper Payments.

If an Employee has applied for a JobSeeker Payment they are to contact their Employer and see if their Employer will claim the Job Keeper Payment.

More information – Australian Treasury Information Sheets

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