The Australian Government aims to support businesses that are affected by the coronavirus, to help keep more Australians in jobs. Through the JobKeeper Payment, eligible employers, sole traders and other entities will be able to claim a payment of $1500 per fortnight for each eligible employee.
For many small businesses, you must have incurred at least a 30% reduction in turnover. How is this measured? Pick a month or a quarter between 30 March 2020 to 27 September 2020, and compare it to the same period in the prior year. This is easy to do if your business uses Xero – look at your P&L sales quarter by quarter or month by month, going back over a year.
Employers will have to register to be able to take advantage of this scheme. We suggest that you talk to your accountant, especially if you are unsure whether your business qualifies or not.
For businesses on Xero, the Payroll STP section takes you step by step through the JK application process.
April 28 Update: Note that the deadline for the JobKeeper Registration is extended until 31 May 2020. Be sure to take an action and register as soon as possible if you are eligible, and if it’s the right course of action for you and your business.
How will an employer be eligible?
Employer will be eligible if:
- their business has an aggregated turnover of less than $1 billion (for income tax purposes) and they estimate their GST turnover has fallen or will likely fall by 30 per cent or more; OR
- their business has an aggregated turnover of $1 billion or more (for income tax purposes) and they estimate their GST turnover has fallen or will likely fall by 50 per cent or more; AND
- their business is not subject to the Major Bank Levy
Who are eligible employees?
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 and systemic basis for longer than 12 months as at 1 March 2020);
- are a permanent employee of the employer, or if a long-term casual employee, not a permanent employee of any other employer;
- were at least 16 years of age at 1 March 2020, with the exception of full time students who are 17 years old and younger and who are not financially independent ;
- are an Australian citizen, the holder of a permanent visa, or a Special Category (Subclass 444) Visa Holder at 1 March 2020;
- were a resident for Australian tax purposes on 1 March 2020; and
- are not in receipt of a JobKeeper Payment from another employer
For a more comprehensive and specific details about the JobKeeper Payment, click here.
