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JobKeeper Payment


The JobKeeper payments wage subsidy scheme was introduced to ensure businesses struggling due to the health and economic challenges created by the COVID-19 pandemic, are better equipped to retain employees if still operating, or to stay connected to employees if their business has closed.

On 8 April 2020, the Federal Government passed the Coronavirus Economic Response Package Omnibus (Measures No 2) Bill 2020 (the Bill), which will take effect on the day after the Bill receives Royal Assent.

 Australian Taxation office has released some guidance on the JobKeeper payment and have advised there will be more information to follow. Based on the information available, we have provided a guide based on our understanding as to how employers can apply for the JobKeeper payment, showing the obligations that need to be met and what they can expect through this process. 

1. Register interest

 Employers are required to register interest in the JobKeeper payment on the ATO website.  

Please register your interest through https://www.ato.gov.au/Job-keeper-payment/ to obtain more information from tax office (also see item 5 for how to enrol for JobKeeper).


2. Check employer eligibility criteria

Employers (including not-for-profits) will be eligible for the subsidy if:

An employer is not eligible for the JobKeeper payment if:

* Calculating Fall in Turnover

Employers can compare either of the following in order to calculate a fall in turnover:

Information on Calculating a Fall in Turnover:


3. Check employee eligibility

 
An eligible employee is an employee who meets all the following criteria:

 Eligible employees also include:

An ineligible employee includes:

 After Ensuring Employee Eligibility


4. Pay employees

 

5. Notify employees

 

6. Registering the entity

 Registering Entity in April (from 20 April 2020 onwards)


Confirming Eligible Employees for April (from 4 May 2020 onwards)

 

Self-employed & other eligible businesses

 Self-employed people will be eligible for the payment provided if they meet the employers eligibility criteria listed above and:

 The ATO will administer the program with an online application process. You may be asked to provide your ABN and a single Tax File Number for the eligible recipient of the JobKeeper Payment, and a declaration of business activity.

 

Related integrity matters for other eligible businesses

 

Partnership
Only one partner can be nominated to receive JobKeeper payment, along with any eligible employees
Partners cannot be employees
Trusts
Receive JobKeeper payment for any eligible employees.
One adult individual beneficiary is eligible to receive JobKeeper payments if they normally receive distributions only
Company
Company directors can nominate one adult director to receive payments, if normally they receive directors’ fees
Director cannot also receive payment as an employee
Shareholders
Businesses which pay individual shareholders that provide labour in the form of dividends will only be able to nominate one adult shareholder to receive payment

 


Ashfords is here to help

The JobKeeper package provides a welcome benefit to Australian businesses and has been put in place to ensure as many businesses and their employees will be able to ride out these difficult times.

These are unprecedented times for everyone and as more information is being introduced each day, we will endeavour to provide any updated information as it becomes available.  

Please contact Ashfords for help with determining your eligibility for this subsidy and the application process.

For more information regarding JobKeeper, please visit https://www.ato.gov.au/general/JobKeeper-Payment/


Disclaimer: This article has been produced by Ashfords Accountants & Advisory Pty Ltd and has been prepared for informational and discussion purposes only. The information provided in this document is of a general nature and has been prepared without taking into account your objectives, circumstances, financial situation. This article does not constitute personal advice. Information contained within this article is based on the relevant law and its interpretations by relevant authorities as it stands at the time the information is provided. Any changes or modifications to the law and/or its interpretations after this time could affect the information we have provided.

 

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