Stimulus #3 – JobKeeper Payment

According to the latest official version updated by ATO (05/04/2020) - but not yet legislated.

Eligibility Employers :

Employers will be eligible for the subsidy :

  • If Annual turnover of Previous year < $1 billion => Estimate Australian based turnover fall by 30 % or more ;
  • If Annual turnover of Previous year > $1 billion => Estimate Australian based turnover fall by 50 % or more ;
  • If Not-For-Profit Entity => Estimate Australian based turnover fall by 15 % or more ;
  • If Self-employed individuals => will be eligible where they meet the relevant turnover test outlined above.

Turnover condition :

  • If the business is part of a group for income tax purposes, please use the Group combined turnover for the limit of $1 billion.
  • Establish that the turnover has fallen in the relevant month or quarter (depending on the BAS period) relative to the turnover in a corresponding period a year earlier.
  • If new business or was not in operation a year earlier => possible to apply considering that the turnover has fallen relative to the usual or average turnover. And the Tax Commissioner will have discretion to set out alternative tests.

Eligibility Employees :

The subsidy is 1,500$ per fortnight per eligible employees.

Employee eligible condition :

  • are currently employed by the eligible employer (including those stood down or re-hired);
  • were employed by the employer at 1 March 2020;
  • are full-time, part-time, or long-term casuals (a casual employed on a regular and systemic basis for longer than 12 months as at 1 March 2020);
  • are at least 16 years of age at 1 March 2020;
  • are an Australian citizen, the holder of a permanent visa, or a Special Category (Subclass 444) Visa Holder at 1 March 2020;
  • were a resident for Australian tax purposes on 1 March 2020;
  • are not in receipt of a JobKeeper Payment from another employer.

Stimulus period available & payment :

Employers will need to satisfy payment requirements for their eligible employees in respect of each 14 day period covered by the scheme.

The Government will provide $1,500 per fortnight per employee for up to 6 months (13 fortnights) :

  • The first period starts on Monday 30 March 2020 and ends on Sunday 12 April 2020.
  • The final period will start on Monday 14 September 2020 and end on Sunday 27 September 2020.

Payment :

  • The payments will be made by the ATO monthly in arrears;
  • The first payment will be paid in the first week of May;

Process

Application :

  • For the time being, companies simply need to register on the ATO site https://www.ato.gov.au/Job-keeper-payment/ (Business name, ABN, contact name, email and phone)
  • Then, you will receive updates and information from the ATO about how and when to claim the JobKeeper payment.

Bilateral Solutions advices :

  • If you think you are eligible, we advise you to register now on the ATO website. If you have any difficulties, we can take this step for you by filling in your details ;
  • Your bank can do relay by equivalent overdraft/ facility if needed ;
  • Use our Excel spreadsheet to estimate the JobKeeper payment. All you have to do is fill in the yellow boxes.

STIMULUS Covid19 - JobKeeper Payment