The ATO has now released the rules regarding the implementation of the JobKeeper Payment which we outline below.
The JobKeeper Payment provides eligible employers with a subsidy to assist them in paying their employees during the Covid-19 pandemic.
Who is eligible?
- Been carrying on a business on 1 March 2020
- Employed at least one eligible employee on 1 March 2020
- Your eligible employees must be currently employed
- Your business turnover has declined by at least 30% compared to the previous year
How do I calculate my business turnover?
You can use one of the following comparison periods to calculate the decline in turnover:
- Actual turnover for the month of March 2020 compared to March 2019
- Projected turnover for the month of April 2020 compared to April 2019
- Projected turnover for the quarter of April to June 2020 compared to April to June 2019
If you do not meet the decline in turnover test immediately, you may be eligible for it in a later period. Once you meet the decline in turnover test, you will remain eligible for the period of the scheme.
Special rules exist for businesses with variable turnover or newly established businesses.
Who is an eligible employee?
All full time and part time employees, as well as casual employees who have been employed for longer than 12 months, are eligible to participate in the scheme. Once you identify eligible employees you will need to complete the employer part of a nomination form and then ask your employees to complete their part of the form.
How do I apply to participate in the scheme?
Applications will be open from 20 April 2020 and we can attend to this on your behalf.
How much do I pay my employees?
You will need to pay your eligible employees at least $1,500 per fortnight. For the month of April, the ATO will allow you to claim the JobKeeper Payment provided eligible employees have been paid at least $3,000 by the end of April.
As everyone’s circumstances are different, please contact us at firstname.lastname@example.org to discuss how the JobKeeper Payment will apply to you.
For more information and access to the JobKeeper employee nomination form, we encourage you to follow this link to the ATO website.