$130B JobKeeper Package: What’s it all about?
This alert is current as at 11 April 2020 and will be updated when more information becomes available. It is provided as general information only and not intended as legal advice.
SNAPSHOT: The Government has committed to a $130B package under which businesses, self-employed and non-for-profits significantly impacted by the COVID-19 outbreak will be able to access a $1,500 wage subsidy per fortnight per ‘eligible’ employee until 27 September 2020.
The Federal Government has introduced this package as a temporary scheme to keep people in their jobs and re-start work when the COVID-19 crisis is over – enabling many employees to keep their job and earn an income.
The subsidy will start on 30 March 2020, with the first payments being received by ‘eligible’ employers in the first week of May.
WHO’S ELIGIBLE TO APPLY?
Employers (including not-for-profits) will be eligible for the subsidy if, at the time of applying:
- Their business has an *aggregated turnover of less than $1B and they estimate that their turnover has or will fall by 30% or more; or
- Their business has an annual turnover of $1B or more and they estimate that their turnover has or will fall by 50% or more; and
- Their business is not subject to the Major Bank Levy.
See the Federal Government website for further information concerning self-employed and not-for-profits – and for the definition of ‘aggregated turnover’.
WHO IS AN ELIGIBLE EMPLOYEE?
Employers can only claim the JobKeeper payment for eligible employees that were in their employment on 1 March 2020 – and continue to be employed whilst the payment is being claimed. An eligible employee is an employee who:
- Is currently employed by the eligible employer (including those stood down or re-hired)
- Is a full-time or part-time employee, or a casual employed on a regular and systemic basis for longer than 12 months as at 1 March 2020;
- Is a permanent employee of the employer, or if a casual employee, not a permanent employee of another employer;
- Aged 16 years or older at 1 March 2020
- Was an Australian citizen, the holder of a permanent visa, or a Special Category Visa Holder at 1 March 2020;
- Was a resident for Australian tax purposes on 1 March 2020; and
- Is not in receipt of a JobKeeper Payment from another employer.
The JobKeeper payment can only be claimed by eligible employers if $1,500 per fortnight is paid (before tax) to each eligible employee.
HOW TO REGISTER?
Businesses are able to register their interests in participating in the scheme through the ATO’s website www.ato.gov.au.
This publication is © Nexus Law Group and is for general guidance only. Legal advice should be sought before acting in relation to any specific issues.