On April 8th, the JobKeeper package was passed by both sides of Parliament and legislated. This update offers further guidance on the scheme.

Workers with multiple jobs

If you are employed by multiple businesses, you are only eligible to receive the payment from your nominated primary employer.

Timing

The JobKeeper will be available from March 30 and will last until September 27 2020, employers can expect to receive payments from the first week of May. Payments will be made monthly by the ATO in arrears.

Businesses Eligibility

Businesses can apply for the payment if your turnover will fall by 30% or more (or by at least 50% for businesses with a turnover of greater than $1 billion or more), relative to turnover of a corresponding period of the previous year.

For businesses who reasonably expect their turnover to fall in the coming month by either 30% or at least 50% for those with a turnover of more than $1 billion relative to that of a previous year, the ATO will provide guidance about self-assessment of actual and anticipated falls in turnover.

For new businesses or businesses with a ‘lumpy’ income, the Tax Commissioner has discretion to set out alternative tests that will establish eligibility in specific circumstances. There will also be some tolerance for employers, who in good faith estimate a 30% or 50% all in turnover but actually experience a slightly smaller fall.

JobKeeper Payment clarification.

To be able to claim the JobKeeper payment for an eligible employee, that employee must be paid a minimum of $1,500 income per fortnight, before tax is withheld. This includes:

  • Employees who have been stood down without pay after March 1 2020, will receive the full $1,500 before tax, per fortnight.
  • Employees who usually earn less than $1,500 a fortnight before tax, are to be ‘topped up to $1,500 per fortnight.
  • Employees whose hours have been reduced and now earn less than $1,500 per fortnight, are to be topped up to $1,500 per fortnight.
  • Employees who were let go after March 1 who have been re-hired will be eligible.

For employees who earn over $1,500 per fortnight, the businesses payments and obligations will not change. The $1,500 fortnightly subsidy received will be to support their continued employment.

Self employed and other eligible businesses
  • Self-employed taxpayers will be eligible provided they meet certain criteria at the time of applying. 
  • Director Fees – Only one person in a director capacity may receive the payment and that individual may not receive the payment as an employee.
  • Trusts – Trust can receive JobKeeper payments for any eligible employees. where beneficiaries only receive distributions, rather than being paid a wage for work done, only one individual beneficiary can be nominated to receive the JobKeeper Payment.
  • Partnership – only one partner can be nominated to receive a JobKeeper Payment along with any eligible employees.
  • Company – where an eligible business pays shareholders in the form of dividends, in lieu of a wage, only one shareholder will be eligible to nominate for the JobKeeper Payment
Registering interest

Eligible employers will need to need to register for the scheme in order to receive payments administered by the ATO.

If you have not already registered, please go to https://www.ato.gov.au/Job-keeper-payment/. Once you have registered you will receive information and updates from the ATO about how and when to claim the JobKeeper payments.

Information in this article is sourced from:

For more insights visit our blog.

About me: David Dahm BA (Acc.), CA., FCPA, CTA, FFin, CPM, FAAPM, FAIM, FGLF.

Chartered Accountant, Chartered Tax Adviser, Registered Tax Agent, Former AGPAL Surveyor 10 years of service

David Dahm is CEO and founder of the national medical and healthcare chartered accounting firm Health and Life and global Founder and CEO of the not for profit project the International Healthcare Standards and Ethics Board (www.ihseb.org)

After a serious work related car accident in 1989, and nine operations later I continue to be a patient and provider advocate. I enter my third decade as a national Chartered Accountant for Medical and Healthcare practices in Australia. I am a former 10-year Australian General Practice Accreditation surveyor. I come from a medico family. I have served on the AAPM national Board and was the inaugural national Chair of the Certified Practice Manager CPM post nominal. I continue to provide accounting tax and practice management advice to many practices all over Australia.

You know who you are and I thank you for this real honour and privilege to serve you and your community through you. Note, I am not a lawyer please seek appropriate legal and accounting advice. This information is for general information and discussion only.

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