What is the new $1,500 JobKeeper payment and are you eligible to receive it?

Posted 31 Mar '20

What is the new $1,500 JobKeeper payment and are you eligible to receive it?

Small business employers that have experienced a 30 per cent fall in revenue since March 1 will be eligible for the $1,500 per fortnight wage subsidy.

Businesses without employees (sole traders, self-employed) will also be eligible to apply.

What you need to know:

• The Australian Tax Office will oversee the payment and businesses can register for the JobKeeper program now at https://www.ato.gov.au/general/gen/JobKeeper-payment/
• The turnover test relates to a 30% fall in revenue comparable to the same period in the prior year (of at least one month).  For example March 2019 compared with March 2020.
• Eligible employees are those on the books of the employer as at 1 March 2020 and are still employed (or were stood down and now are re-employed). They must also be at least 16 years old, not receiving JobKeeper payments from another employer, and be an Australian citizen/permanent resident, or holder of certain visa types.
• The JobKeeper payment is set at a flat rate of $1,500 per fortnight per employee, for all full-time, part-time or long term casual workers (casuals who have been employed for 12 months or more).
• The subsidy is paid by the ATO to the employer who is obliged to pass on the full $1,500 through their payroll system to eligible employees. The JobKeeper payments form part of the employees’ taxable income and are subject to PAYG withholding.
• The subsidy has a start date of 30 March 2020. Payments commence in early May, backdated to 30 March 2020. The ATO will then make the payments monthly in arrears to eligible employers.
• You will need to ensure that all eligible employees receive at least $1,500 per fortnight (before tax). For employees that were already receiving this amount or greater from their employer then their income will not change. For employees that have been receiving less than this amount, the employer will need to top up the payment to the employee up to $1,500, before tax.
• You need to notify all eligible employees that they are receiving the JobKeeper Payment.
• Click here for fact sheet containing further information.