This afternoon, Prime Minister Scott Morrison and Treasurer Josh Frydenberg announced a third round of support for businesses in the form of a JobKeeper payment. The Treasurer acknowledged that the past few weeks have been tough but the weeks ahead will be tougher and stated that the Australian Government has all Australians’ backs and that it is focused on keeping Australians in jobs and keeping businesses in business.

What is the JobKeeper Payment?

This payment is a wage subsidy payable by the Government to businesses impacted by Coronavirus so that businesses can continue paying their employees. This will keep more employees employed and support businesses in surviving the current crisis.

The wage subsidy payment is a fortnightly payment of $1,500 per eligible employee from 30 March 2020 for a maximum of 6 months. The Government will commence making payments from the first week of May (backdated to 30 March 2020).

Which Employers are Eligible?

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 per cent 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 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 employed by the business in order to receive JobKeeper Payments.

Not-for-profit entities (including charities) and self-employed individuals (sole trader businesses without employees) that meet the turnover tests that apply for businesses are eligible to apply for JobKeeper Payments.

Which Employees are Eligible

Eligible employees are employees who:

• are currently employed by the eligible employer (including those stood down or re-hired);
• were employed by the employer at 1 March 2020;
• are full-time, part-time, or long-term casuals (a casual employed on a regular basis for longer than 12 months as at 1 March 2020);
• are at least 16 years of age;
• are 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; and
• are not in receipt of a JobKeeper Payment from another employer.

How to Apply

Businesses with employees need to do the following:

• Register your interest in applying for the JobKeeper Payment from 30 March 2020 – click here to register your interest;
• Subsequently, eligible employers will be able to apply for the scheme by means of an online application;
• Eligible employers will need to identify eligible employees for JobKeeper Payments and must provide monthly updates to the ATO;
• Participating employers will be required to ensure eligible employees will receive, at a minimum, $1,500 per fortnight, before tax.

Businesses without employees (sole traders) need to do the following:

• Register your interest in applying for the JobKeeper Payment from 30 March 2020 – click here to register your interest;
• Businesses without employees will need to provide an ABN for their business, nominate an individual to receive the payment and provide that individual’s Tax File Number and provide a declaration as to recent business activity;
• People who are self-employed will need to provide a monthly update to the ATO to declare their continued eligibility for the payments. Payment will be made monthly to the individual’s bank account.

What if Employees are Stood Down?

As long as the employee was employed by the business at 1 March 2020, the business can receive the $1,500 per fortnight payment and pass this on to each employee for up to six months. This enables the business to maintain a connection to its employees and be in a position to resume operations when the crisis is over.