JobKeeper Payment Coronavirus Business Stimulus #3

JobKeeper Package 

If you have any questions in relation to the following information do not hesitate to contact our office via email info@basandbalances.com.au and one of our friendly BAS Agents will be able to assist you with your individual enquiry.

For more detailed information and to find the fact sheets on this and the other Government announcements in relation to stimulus packages, head to their website: www.treasury.gov.au

To apply for the JobKeeper payment register here: https://www.ato.gov.au/general/gen/JobKeeper-payment/

Stimulus #3 JobKeeper Payment

• Businesses who have experienced a minimum of 30% loss of income due to the coronavirus (gyms, cafes, restaurants, retail, tourism, events, catering etc.,)
• Available for full-time, part-time, casuals and contractors employed for 12 months or more
• The business is not subject to the Major Bank Levy
• Sole Traders
• Includes employees already stood down
• Will be managed via the ATO using data that is sent via Single Touch Payroll

Background on JobKeeper Payment

Under the JobKeeper Payment, businesses impacted by the Coronavirus will be able to access a subsidy from the Government to continue paying their employees. Affected employers will be able to claim a fortnightly payment of $1,500 per eligible employee from 30 March 2020, for a maximum period of 6 months.

Eligible Employers

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 engaged in order to receive JobKeeper Payments.

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

Obligation on Employers

Employers need to:

√          Register an intention to apply on the ATO Website

√          Provide information to the ATO on eligible employees

√          ensure that each eligible employee receives at least $1500 per fortnight (before tax).

√          Notify all eligible employees that they are receiving the JobKeeper payment

√          Continue to provide information to the ATO on a monthly basis (thru Single Touch Payroll – STP)

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 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.

If your employees receive the JobKeeper Payment, this may affect their eligibility for payments from Services Australia as they must report their JobKeeper Payment as income.

APPLICATION PROCESS

To apply for the JobKeeper payment register here: https://www.ato.gov.au/general/gen/JobKeeper-payment/

Businesses with employees

Initially, employers can register their interest in applying for the JobKeeper Payment via ato.gov.au from 30 March 2020.

Subsequently, eligible employers will be able to apply for the scheme by means of an online application. The first payment will be received by employers from the ATO in the first week of May.

Eligible employers will need to identify eligible employees for JobKeeper Payments and must provide monthly updates to the ATO.  Information uploaded via Single Touch Payroll.

Participating employers will be required to ensure eligible employees will receive, at a minimum, $1,500 per fortnight, before tax. It will be up to the employer if they want to pay superannuation on any additional wage paid because of the JobKeeper Payment.

Further details for businesses for employees will be provided on ato.gov.au.

Businesses without employees

Businesses without employees, such as the self-employed, can register their interest in applying for JobKeeper Payment via ato.gov.au from 30 March 2020.

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. Further details for the self-employed will be provided on ato.gov.au.