JobKeeper Payments Help when you need it

The Basics about Eligibility

The JobKeeper Payment is a government funded relief program which has been established to help Australian businesses keep their doors open during the COVID-19 pandemic. Eligible employers will be able to claim money to help keep employees in their jobs, and to help maintain their financial wellbeing, in an effort to curb the negative economic effects of COVID-19.

Eligibility

Employers

  1. On the first of March, 2020, you operated a business inside of Australia, OR were one of the following:
    • The business was a not-for-profit organisation which operated primarily inside of Australia
    • A Deductible Gift Recipient endorsed under either the Overseas Aid Gift Deductibility Scheme or for Developed Country Relief ( DGR item 9.1.1 and item 9.1.2 respectively ) for a public fund which you operated, or as a public fund.
  2. The business had at least one eligible employee working for you
  3. Any eligible employees you have are employed for the fortnights which you are claiming for, this includes stood down and re-hired employees.
  4. The business has suffered one of the following:
    • A 30% drop of turnover for a business with $1 billion or less of aggregated turnover
    • A 50% drop of turnover for a business with over 1$ billion of aggregated turnover
    • A 15% drop of turnover for an ACNC-registered charity ( universities and schools do not apply )
  5. The business does not come under any ineligibility criteria. These ineligibility criteria are:
    • The Major Bank Levy was imposed on your entity, or any member of it’s group therein, for any financial quarter before the 1st of March, 2020
    • Are an Australian government agency
    • Are a local governing body
    • Owned by either an Australian government agency or a local governing body
    • Are a sovereign entity
    • Are owned by a sovereign entity
    • Are a company in liquidation
    • Are an individual who has declared bankruptcy.

Sole Traders

Sole Traders are eligible, provided that their business has had an economic downturn, as defined under the eligibility criteria.

Religious Institutions

Religious Institutions can qualify for the JobKeeper payment if you pay a minister or a full-time member of a religious order, who is NOT employed to perform any religious activities.

Business Owners

Businesses such as companies, trusts or partnerships, can also apply for the JobKeeper payment, provided that business owners, ( a shareholder, partner, or adult beneficiary ) or a director, are actively involved with the business. Only one eligible business participant is eligible per entity. Only one entitlement is permitted per entity. If you have more than one business owner or participant, you can still only apply for one entitlement.

Employees

Employees are eligible for the JobKeeper payment if:

  • They are employed by you
  • Were either a Full-time, Part-time or Long term Casual employee who were employed on a regular basis for at least 12 months and are not a permanent employee of another business
  • On the 1st of March, 2020, were 18 years or older or 16/17 years old if independent and are not studying full-time
  • Were at the 1st of March, 2020, an Australian resident, and are either:
    • An Australian Citizen
    • The holder of a permanent Visa
    • A Protected Special Category Visa holder
    • An Australian resident for tax purposes on a Special Category subclass 444 Visa
  • Were not receiving either parental leave, Dad and partner or a Worker’s compensation payment in relation to a total incapacity for work
  • Are in agreement with you nominating them for the JobKeeper payment

The business cannot claim for any employees who were either first employed after or left your employment before the 1st of March, 2020, and cannot have agreed to be, or previously nominated by another employer.

If an eligible employee wants to take part in the JobKeeper payment scheme, they can agree to your nomination by completing the JobKeeper employee nomination notice and return it to you for your records. The business has seven days to tell an employee that they have been nominated after they provide their details to the ATO.

If an employee has more than one employer, they can usually choose which employer they want to be nominated through.

Employees on long term leave or who were stood down

Any employees who were either stood down or on long term leave may still be eligible, as long as they were still employed by you and were in compliance of the eligibility criteria on the 1st of March, 2020.

Terminated employees

If you terminated an employee after the 1st of March, 2020, you can re-hire them and as long as they met the eligibility criteria on the 1st of March, 2020, they will be eligible for nomination.

Deadlines

There are multiple deadlines which you as an employer, should be aware of. These deadlines are important to remaining eligible for the JobKeeper payment.

May 8, 2020

This is the deadline for making sure that you have paid your employees, who you are claiming the JobKeeper payment for, the minimum $1500 ( Before Tax ) for fortnights one and two.

May 10 & May 24, 2020

These are the deadlines for making sure that your employees are paid for fortnights 3 and 4 respectively.

31 May, 2020

This is the cut-off date for enrollment into the JobKeeper payment for the fortnights ending in April and May.

The JobKeeper payment will ensure that employers retain their employees, but also keep their employees paid, which will in turn, help to combat the economic downturn associated with the COVID-19 pandemic. If you have any further questions surrounding this, please contact the ATO or us.

For further information surrounding the important dates for the JobKeeper payment, visit https://www.ato.gov.au/General/JobKeeper-Payment/In-detail/JobKeeper-key-dates/

References

This document was created using information from the Australian Taxation Office online materials. These are:

https://www.ato.gov.au/General/JobKeeper-Payment/

https://www.ato.gov.au/general/JobKeeper-payment/employers/

https://www.ato.gov.au/general/JobKeeper-payment/employers/eligible-employers/

https://www.ato.gov.au/general/JobKeeper-payment/employers/your-eligible-employees/

https://www.ato.gov.au/General/JobKeeper-Payment/In-detail/JobKeeper-key-dates/