New JobKeeper payments for employers

New JobKeeper payments for employers


The Federal Government introduced a third COVID-19 support package of $130 billion on 30 March 2020. The package includes additional support for businesses, including a new JobKeeper payment to help businesses retain employees.

Businesses who have been affected by COVID-19 may be able to receive a Government subsidy to help them continue to pay their employees. To be eligible, employers must:

  • Have more than a 30% reduction in their turnover for at least a month compared to last year if the business has an overall turnover of less than $1 billion.
  • Have more than a 50% reduction in their turnover for at least a month compared to last year if the business has an overall turnover of $1 billion or higher.
  • Not be subject to the Major Bank Levy.
  • Have been in an employment relationship with eligible employees as at 1 March 2020.

JobKeeper payments must only be made to eligible employees, which are employees who:

  • Are under current employment with the employer.
  • Were already employed by the employer on 1 March 2020.
  • Are employed on a full-time or part-time basis, or are a long-term casual who has been employed on a regular basis for over 12 months as at 1 March 2020.
  • Are at least 16 years old.
  • Have an Australian citizenship or are an eligible visa holder.
  • Are not also receiving a JobKeeper payment from another employer.

To receive the JobKeeper payment, employers need to:

  • Go onto the ATO website and register an intention to apply with an assessment stating they have or will experience the 30% turnover reduction.
  • Provide the ATO with eligible employee information, including how many employees had been engaged as at 1 March 2020. This can be done using Single Touch Payroll data.
  • Confirm that eligible employees each receive at least $1,500 per fortnight before tax.
  • Notify eligible employees about receiving the Jobkeeper payment.
Categories

If you believe the matters discussed above are relevant to your business, please contact Darren Smith of our office to discuss further.


Darren is a Chartered Accountant with extensive experience, including working in the big 4 and medium sized firms before becoming a partner of a city based firm in 2000.

He has gained much experience and has extensive knowledge in providing business and taxation advice, superannuation planning, negotiation of sales and acquisitions of businesses and property development. His client base covers a wide range of industry groups.

Darren works with business owners to grow their businesses and create personal wealth within and outside of their business.


+ There are no comments

Add yours