The Australian Federal Government is seeking to provide eligible employers with a subsidy of $1,500 per fortnight per employee for up to six (6) months. This payment is intended to support employers, and allow them to maintain their connection to their employees, which should allow the employer to reactivate the business quickly when the crisis is over (without having to rehire staff).

Eligibility

Employers (including non-for-profits) 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 (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 per cent (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.

In order to obtain the JobKeeper Payment, employers will need to lodge an application with the Australian Taxation Office (ATO), and provide documentation supporting the downturn in their business. In addition, employers must report the number of employees eligible for the JobKeeper Payment on a monthly basis.

Eligible employers will receive the payment for each eligible employee that was on their books on 1 March 2020 (and continues to be engaged by that employer). This includes full-time, part-time, long-term casuals and stood down (per the Fair Work Act) employees. Casual employees will be eligible where they have been with the employer on a regular basis for at least the previous twelve (12) months at 1 March 2020. To be eligible for the payment the employee must be:-

• 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.

Eligible employers who have stood down their employees prior to the commencement of this scheme will be able to participate. Employees that are re-engaged by a business that was their employer 1 March 2020 will also be eligible.

Where an employee is eligible for the JobKeeper Payment, and are accessing support through Services Australia, they will need to advise Services Australia of their change in circumstances.

Self-employed individuals will also be eligible to receive the JobKeeper Payment where they have suffered or expect to suffer a 30 per cent (30%) decline in turnover relative to a comparable a period a year ago (of at least a month).

Where an employee has multiple employers, only one employer is eligible to receive the payment. The employee will need to notify their primary employer to claim the JobKeeper Payment (this would generally be the employer claiming the Tax-free Threshold for PAYG Withholding purposes).

Payment Process

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.

Where employers participate in the scheme, their employees will receive this payment as follows:-

• If an 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 their employer to continue operating by subsidising all or part of the income of their employee(s);
• If an employee ordinarily receives less than $1,500 in income per fortnight before tax, their employer must pay their employee, at a minimum, $1,500 per fortnight, before tax;
• If an employee has been stood down, their employer must pay their employee, at a minimum, $1,500 per fortnight, before tax;
• If an employee was employed on 1 March 2020, subsequently ceased employment with their employer, and then has been re-engaged by the same eligible employer, the employee will receive, at a minimum, $1,500 per fortnight, before tax.

It will be up to the employer if they want to pay superannuation on any additional wage paid because of the JobKeeper Payment.

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

The subsidy will start on 30 March 2020, with the first payments to be received by employers in the first week of May.