The Government has announced a range of new measures to support Australian businesses, employees and sole traders. The JobKeeper Payment aims to support businesses to maintain their income and connection with employees. These connections will enable businesses to reactivate their operations quickly after the crisis is over.

The JobKeeper Payment

Eligible businesses will be able to claim $1,500 from March 30th, per fortnight per eligible employee for a maximum of 6 months. Payments will flow from the first week of May but will be backdated to March 30th.

Factsheet by Treasury on JobKeeper payment.

Who is eligible?

Eligible employers are those employers (including non-profit entities) with:

• Turnover below $1bn that have experienced a reduction in turnover of 30% or more relative to a comparable period 12 months ago (of at least a month); or
• Turnover of $1bn or more that have experienced a reduction in turnover of 50% or more relative to a comparable period 12 months ago (of at least a month); and
• Are not subject to the Major Bank Levy.
• For Charities registered with ACNC, they are eligible if the turnover has reduced by at least 15%.

Businesses will be expected to establish that their turnover has fallen in the relevant month or three month period compared with the same period from the previous year. Where a business was not in operation a year earlier, ATO will have some discretion to consider additional information to establish whether the business has been adversely affected.

Eligible employees are those who:

• Were employed by the relevant employer on 1 March 2020, and are currently employed by the employer (including those who have been stood down or re-hired); and
• they are full time, part-time, or long term casuals (a casual employee employed on a regular and systematic basis for 12 months as at 1 March 2020); and
• Were at least 16 years of age at 1 March 2020; and
• Were an Australian citizen, the holder of a permanent visa, or a Special Category (Subclass 444) Visa Holder at 1 March 2020; and
• Were a resident of Australia for tax purposes on 1 March 2020; and
• Are not in receipt of a JobKeeper Payment from another employer.

Sole traders and the self-employed with an ABN will be eligible for the payment if the following conditions are met:

• Their turnover has or will fall by 30% or more;
• They had an ABN on or before 12 March 2020;
• They had some income in the 2018-19 income year or made some supplies between 1 July 2018 and 12 March 2020 and provided a 2019 tax return or certain activity statements to the ATO by 12 March 2020;
• They were actively engaged in the business;
• They are not entitled to another JobKeeper Payment
• They were aged at least 16 years of age as at 1 March 2020; and
• They were an Australian citizen, the holder of a permanent visa, or a Special Category (Subclass 444) Visa Holder at 1 March 2020.

Where the business is operated as a partnership, company or trust the entity can receive JobKeeper payments in relation to one nominated partner, beneficiary, director or shareholder who works in the business.

Sole traders and the self-employed can register their interest in applying for the JobKeeper payment with the ATO. These businesses will need to provide an ABN for the business, nominate an individual to receive the payment, provide the individual’s TFN and declare their continued eligibility for the payments. Payments will be monthly to the individual’s bank account.

How is the support calculated?

The ATO will use data obtained from the Single Touch Payroll (STP) to administer the system and ensure that employers only receive the subsidy for eligible employees. The business will continue to receive the payments for eligible employees while they are eligible for the payments. While the program is expected to run for 6 months, payments will stop if the employee is no longer employed by the relevant employer.

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How to access JobKeeper payment?

To register for job keeper subsidy, please refer to the ATO.

Employer obligations:

• Assess turnover
  • Ensure you have an accurate record of your revenue for the 2018-19 income year and for the 2019-20 year to date
  • Ensure you keep an accurate record of revenue from March 2020 onwards
  • Compare your revenue for the month or quarter ended 31 March 2019 with revenue for the month or quarter ended 31 March 2020 to make a high-level assessment of whether this measure is likely to be available.
  • Measure the % decline in your revenue to see whether it has declined by at least 30%
  • If you are not eligible in March, you may become eligible in another month

• Identify eligible employees
  • Nominate the employees eligible for the JobKeeper payments – you will need to provide this information to the ATO and keep that information up to date each month. The ATO will use Single Touch Payroll to prepopulate the information in most cases.
  • Notify all eligible employees that they are receiving a JobKeeper payment. Employees can only be registered with one employer.
  • Pay eligible employees at least $1,500 per fortnight (before tax). If an employee normally receives $1,500 or more per fortnight before tax the employee should continue to receive their regular income.
  • Pay superannuation guarantee on normal salary and wages amounts paid to employees. If the employee normally receives less than $1,500 per fortnight before tax, the employer can decide whether to pay superannuation on the additional amount that is paid as a result of the JobKeeper program.

For a complete summary of all the stimulus measures announced by the government due to coronavirus outbreak, please refer to this summary.

Please contact us if you have any specific queries on the Jobkeeper payment or on other stimulus measures announced by the government.

ThinkWiser is a boutique Accounting firm based in South Morang, Victoria. We provide Accounting, Bookkeeping, Tax compliance services to small businesses and individuals throughout Australia through video-conferencing. We provide Mobile Accounting & Tax Services to the following suburbs: Mernda, Doreen, Yarrambat, Mill Park, Bundoora, Plenty, Craigieburn, South Morang & Melbourne. For any queries, please call us on 03 9005 6762 or email us at [email protected]