UPDATE: Coronavirus COVID-19 – JobKeeper Subsidy

Dear clients,

The Government announced a subsidy of $1,500 per fortnight per employee, administered by the ATO through the employer’s Single Touch payroll software from 1 May 2020. This will be available to businesses that have experienced a downturn of more than 30% from the prior year. To be a part of the subsidy, employers will need to ensure that their employees receive the $1,500 per fortnight.

It is likely, that in most cases, this is better for your employees than the previous offer run through Centrelink. For those of you who are employees, please stay in touch with your employer over the coming weeks to discuss their application process.

The following information is all we know at this stage. The details are yet to be finalised and the legislation must be passed by parliament.

Your Eligible employees are those who:

  • Were employed by the relevant employer at 1 March 2020; and
  • Are currently employed by the employer (including those who have been stood down or re-hired); and
  • Are full time, part time, or long term casuals (a casual employee employed on a regular basis for 12 months as at 1 March); and
  • Are an Australian citizen, hold a permanent visa, are 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.

While it appears that businesses without employees can potentially qualify for JobKeeper Payments, it is not clear at this stage what conditions will need to be satisfied.

Sole traders and the self-employed with an ABN, and not-for-profits (including charities) that meet the turnover tests are eligible for the JobKeeper payment.

The ATO requests that all who intend to register for this payment register their interest at the following link: www.ato.gov.au/Job-keeper-payment

At this stage there is no further action required by employers. There are a number of issues and details that we do not know as yet until the legislation is released. These include:

  • Detail of exactly how the turnover reduction will be calculated
  • How sole traders, contractors, partners in a partnership will access the subsidy (although we know they can).

We will bring you more information as soon as it is released.

C & H Accounting Group team