Are you eligible for the JobKeeper payment?
The Government has just announced a $1,500 per fortnight payment per employee to support employers that are struggling due to the COVID 19 pandemic.
This means that employees of businesses that had to shut down– such as pubs, restaurants, cinemas and the like, may be ‘put back on the books’ and continue to be paid even if they are not working.
Here’s everything you need know
The government will pay eligible employers $1,500 per fortnight for each eligible worker, which must be passed on in full to the employee, minus tax.
This is about $400 a fortnight more than the $1,100 Centrelink payment for those out of work.
Who is an eligible employer?
Companies, partnerships, trusts, not-for-profits, charities and sole traders that have lost 30% or more of their revenue compared to the same period a year ago (details of this calculation have not been released as yet)
Who is an eligible employee?
To be eligible you must be an Australian citizen, Permanent visa holder, protected special category visa holder, non-protected special category visa who has been residing continually in Australia for 10 years or more, or a New Zealander on a special category (subclass 444) visa and:
- A Full and part-time worker or a sole trader
- A casual worker who have been employed for 12 months or more
- 16 years of age or older
If you have been stood down since 1 March, you still are eligible
At the moment most temporary visa holders will not be eligible.
When will it start?
The subsidy will start on 30 March, with the first payments to be transferred to employers in the beginning of May. In the meantime, employers must continue to pay their employees.
Employers have to pay the 9.5% superannuation guarantee, but only up to the maximum amount each employee normally earned. For example, a worker who ordinarily earn more than $1,500 a fortnight, will now receive the $1,500 JobKeeper payment, with superannuation payable on the full $1,500.
For a worker that normally earn $1000 per fortnight, the worker will now receive the $1,500 JobKeeper payment, but superannuation is only mandatory for this the first $1000, equal to the workers normal wages, with the employer free to decide whether to pay super on the remaining $500 or not.
How do I apply?
None of this has been passed into legislation as yet, so you can’t apply as such, but you can register an interest immediately and I strongly recommend that you do so, even if you are not sure about the 30% drop eligibility
Register here https://www.ato.gov.au/general/gen/JobKeeper-payment/
We are still to find out the nitty gritty of the eligibility requirements and will update this information as it becomes available.
Please contact us anytime if you are concerned or have any questions