As part of a $130bn support package in response to the COVID-19 pandemic, the Australian government has introduced a new JobKeeper payment. If your business has been affected, you will be able to access a subsidy to help with payment of your employees.
While there is no legislation officially released, we do our best to breakdown what the JobKeeper payment could mean for you.
How much can I get?
The government plans to pay eligible employers a sum of $1,500 per fortnight for each eligible worker. This works out to roughly 70% of the national median wage and $400 more per fortnight than the updated jobseeker payment.
Am I eligible?
To receive the new JobKeeper payment, both the employer and employee must meet the required eligibility criteria. Big banks which are subject to the banking levy are not eligible.
To be an eligible employer, you must be a business (including sole traders, companies, partnerships and trusts), not-for-profit organisation or charity that:
Has a turnover of less than $1bn and have lost 30% or more of your revenue compared to the same period last year
Has a turnover of greater than $1bn and have lost at least 50% of their revenue compared to same period last year.
To be an eligible employee:
You are currently employed by an eligible employer, which includes those who were stood down or re-hired.
You were employed by an eligible employer at March 1st, 2020.
You were a sole trader, long-term casual, part-time, or full-time employee employed on a regular basis for longer than 1 year as at March 1st, 2020.
You are at least 16 years of age.
You are an Australian citizen, hold a permanent visa, a protected special category visa, a non-protected special category visa who has been an Australian resident for at least 10 years, or a New Zealander on a special category (subclass 444) visa.
You are not receiving jobseeker payment from another employer
The government estimates that this payment will be received by around 6 million workers.
How will I be paid?
If you are an eligible employer, you will be paid $1,500 per fortnight for each eligible employee starting from March 30th, 2020 – for a maximum of 6 months.
If you are an eligible employee, you will receive a minimum of $1,500 before tax per fortnight. Employers are able to top up these payments at their discretion.
They will pay employees as usual and receive monthly instalments, as arrears, from the Australian tax office.
Will I still receive $1,500 if I usually earn less?
The rules state that employees must be paid a minimum of $1,500 per fortnight, before tax – even if they were earning less than $1,500 per fortnight, before tax. Therefore, with the new JobKeeper payment, it is possible for part-time or long-term casual workers to earn more than their regular pay.
What if I was laid off or stood down?
If you have been stood down as an employee, the employer must continue to pay you at a minimum of $1,500 per fortnight, before tax. This means if you have stopped working due to restrictions on businesses – such as cafes, restaurants, theatres and other public venues – you will continue to be paid.
Additionally, if you began employment at March 1st, 2020, subsequently ceased employment, and were re-hired by the same employer, you will also receive a minimum of $1,500 per fortnight, before tax.
This will encourage businesses to re-hire workers that they were forced to lay off.
When will I be able to receive the first JobKeeper payment?
The subsidy will commence on March 30th, 2020 with employers expected to receive the first payment in the first week of May. Until then, employers are required to continue paying their employees. The amount can then be claimed back as part of the first payment.
How does this affect superannuation?
Employers will have to continue to pay superannuation guarantee on regular wages. It is their choice, however, whether to pay superannuation on any excess amount resulting from the JobKeeper payment.
What this means is that a worker who ordinarily receives $1,200 per fortnight along with superannuation; will receive the first $1,500 payment with superannuation paid on the first $1,200. It is then up to the employer if it is paid on the last $300.
Can I receive the JobKeeper and other payments at the same time?
A person who receives the JobKeeper payment is not eligible to also receive the jobseeker payment.
If you already applied for jobseeker, you could withdraw the application and shift to JobKeeper payments if you are re-hired by your employer. Lastly, you cannot be in receipt of JobKeeper payments from multiple employers.
You can see our other blog posts regarding COVID-19 here, but for the most up to date information, please regularly check back to the Australian Taxation Office’s COVID-19 page.
Comments